IT Outsourcing .. A Booming Concept

IT Outsourcing becomes an integral part of any enterprise, corporates or IT Companies where subject matter expertise requires along with cost effective solution. World is becoming very dynamic and no sector remains untouched by innovative way of adopting practices or process. That’s where Outsourcing comes into picture due to lack of in-house skills of innovation or high operating cost of managing the same.

In simple terms Outsourcing means; hiring a third party for specific time or project to perform activities on behalf of the company in order to gain various benefits like:

·????????Cost saving

·????????Subject Matter Expertise

·????????Increase in work efficiency and quality

·????????Speed & Agility in Projects Delivery

·????????Scalability and Innovation

·????????Minimize internal Infrastructure or Resources Requirement.

Informational Technology Outsourcing is the activity of hiring individual or a company who are skilled in specific field in order to meet project requirements. ?There are various models of IT Outsourcing from its inception and the same gets evolved as per the need of the time. ?Those are like : Project Based Outsourcing, Time & Hour Based Outsourcing, Resource or Skills Based Outsourcing or Retention Based Outsourcing etc.

Based on the Companies requirement and budget appropriate model gets decided and agreed between company and service provider. However, in all the models IT Activities remains same in nature and can be opted out from any one or more from the list as below : ?

·????????IT service management

·????????Strategy & Transformation

·????????IT Infrastructure and operation

·????????Application Development

·????????Website hosting

·????????Mobile applications

·????????Digital Transformation

Deriving several points to explain the growth of IT outsourcing:

First and foremost, point is Cost Saving, because in order to deliver an internal project where subject matter expertise is needed; company has to hire new employees and experts which increases the company’s cost as a whole. ?Therefore, by outsourcing such activities gives expedite result with subject matter expertise at lower cost which in turn decreases the operating cost of the company. Also the company does not need to procure different technologies or systems to complete the requirement which is one of the critical advantage of outsourcing.

Secondly, sometimes the core function of the business is different from the project received but in order to increase the client base the company accepts it and outsource the requirements to Third Party Company. Therefore a company can perform and deliver multiple projects at same time.

Sometimes outsourcing helps the company to get advantage of latest technologies around the world and subject matter expertise of different resources. If the company accepting the project is driven by an expert than it will create magical results and reports which in return will help both the sides.

By handing over the projects to third party, companies reduce the liability of several functions which are difficult to operate and maintain, but are beneficial.

TO Conclude, IT Outsourcing is the key to increase productivity and efficiency of a business. It helps the organization to expand its services as well as their client base. It’s not a new concept but booming now a days especially post COVID time where any projects can be delivered irrespective of geography or skills limitations. !!

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