IT Outsourcing: A Convenient Choice In This Pandemic Times

With digital transformation in the minds of almost all leaders today, organizations now understand that success depends on their ability to creatively apply and develop IT in a way that differentiates them from the competition in these challenging times.

Outsourcing is back, but in a new way and driven by new motivations, such as business growth, customer experience, and distortion of competition. The rapid shift to remote work that IT teams are currently involved in due to COVID-19 has highlighted outsourcing as a vital part of any response to a remote event. While organizations adapt their infrastructure and software to connect employees, they are also considering roles and functions.

The anticipations for IT outsourcing market are depicting positive signs. According to Technavio, the contract value of the IT outsourcing market is projected to spur over $409 billion by 2022. 

Drivers of IT Outsourcing At Present

The growing need to curb operating costs and the lack of internal talent in IT engineering is expected to boost in IT outsourcing in the forecast period. The IT outsourcing industry is facing a resurgence in essential information technology activities, not only to save capital but also to take advantage of qualified and experienced professionals in a view to providing premium solutions.

Companies have started to outsource application development and maintenance services to onshore service providers to reduce the hidden costs of outsourcing labor. The industry is seeing new markets for outsourcing IT operations; therefore, companies focus on their core businesses and leverage cutting-edge technologies with complete management of the business environment.

Factors To Consider Before Choosing The Right IT Outsourcing Partner 

Hiring a whole entity for the task that is most important for business shouldn't be left unattended. Understand every aspect of the project and accordingly decide on an IT outsourcing partner.

Identify Your Basic Competencies

After confirming your IT needs, the next task is to select the outsourcing service providers based on the selection criteria for suppliers. Identifying the main competencies is one of the critical criteria for choosing a vendor for successful offshore outsourcing.

Every service provider has a niche experience. Some are good with digital transformation services, and others may be good in terms of more employees. Selecting the right service provider for the right job makes all the difference.

• Analyze The Current Expertise

Finding suitable resources is never an issue when you outsource your IT needs to development companies.

Moreover, Deloitte states that around 70% of outsourcing providers and businesses are now readily adopting Cognitive Process Automation and Robotic to enhance outsourcing outcomes.

During the assessment phase, analyze the team's qualifications, practical experience, and knowledge with the required technology stack. Communication skills are a priority, along with other skills. Ultimately, there must be an agreement between the two parties, and this will not be possible without excellent communication.

Also, look for the number of similar projects and clients served. It is also ideal for analyzing the reputation of the chosen IT outsourcing partner with existing customers. In the same vein, the coordination of cultural and professional ethics is also essential. These values strengthen the outsourcing relationship between the customer and the company.

• Understand Terms Of Agreement

Like any business owner, it is advisable to seek legal advice when signing an outsourcing contract. In IT development, in particular, it is essential to define the intellectual property of all work done clearly.

As a general rule, when you hire an entity, the customer must retain full ownership of the IP. Although the outsourcing provider offers IT support, customer service, or other standardized work that is not unique to your company, it can retain ownership of any software tools or processes it uses.

• Check Post Deployment Support & Flexibility 

Flexibility, in terms of support, is significant. It is crucial to understand how flexible your partner is if any urgent support requirement arises. If you have time zone differences, you need to be very serious in this aspect. Similarly, your partner should be there for any after-sales support. Support must include any future bug fixation and software updating.

Support flexibility is critical. It is very vital to recognize your partner's flexibility. If there are time zone differences, take pointer very seriously. Likewise, your partner must be present for any after-sales support. Support should include future bug fixes and software updates.

Moving ahead, let's focus on some of the IT services that are outsourced more often.

Typical IT Services That Can Be Outsourced

• Application Services
• Helpdesk Services
• Managed Security Operations
• Network Operations
• Content Management Services
• Emerging Technology Services
• Data Center Operations
• Infrastructure Capacity Services

Bottom line, 

When we conclude a decision to develop an app or IT solution, there are multiple options like hiring a whole team of developers or outsource it from an expert. However, the cost is the center of every development, and outsourcing beats every other option around with access to global talent and technologies and affordability.

Onboarding the right partner could lead to enhanced business efficiency, low operational cost, high value, productivity, and help mitigate the complexities businesses face during the pandemic.

Katalyst Technologies Inc, a pioneering tech company, enables new-age businesses to adapt tech-driven strategies and outsource IT operations in this challenging time. Connect with us! And we shall assist you in a smooth transition.