Top 5 pros and cons of IT outsourcing you should know


The IT industry has been on a ride uphill for the last few decades. It is not easy for all companies to be at par with the required pace. IT systems are becoming more sophisticated and complex. Businesses are finding it difficult to hire and maintain an onsite team for their IT operations. An IT outsourcing company comes into the equation as an elegant solution for this problem. Outsourcing not only solves your problems as a business entity but it also has a lot more to offer. Going further in the blog, we will have a close look at the pros and cons of IT Outsourcing you need to know about. So, let us begin…

5 Pros of IT Outsourcing for Your Business

The advantages that outsourcing services offer are the prime reason for their increasing popularity. Businesses can have better outputs on different projects with the help of IT outsourcing. The following are the key advantages:

1. Reduces Development Cost

This is one of the most sought-after benefits of outsourcing. The software industry is ever-changing. A major portion of the development cost is dedicated to hiring and training staff with skills relevant to contemporary market trends. By outsourcing software development, you categorically eliminate this cost and usage of internal resources. This effectively reduces the overall cost of development.

2. Top-Quality Experts

Outsourcing gives you access to highly skilled IT professionals from different platforms and places across the globe. As the geographical constraints are eliminated, you can pick your team from a wide pool of talent available out there for your projects. Most often, you end up hiring experts that are good at their jobs. They take fairly less time to complete and finalize tasks, regardless of size. Plus, they bring their knowledge and experience with them that eventually benefit your business.

3. Competitive Edge

New technologies are coming into play every day taking the development game forward. You need to keep your organization aligned with modern technology to stay in the game. An IT outsourcing company gives you an edge in the competitive environment. It helps your stay ahead of your competitors. Outsourcing firms are equipped with the latest technological resources. This is the reason why businesses opting to outsource IT services are more likely to transform the competitive landscape, reposition their firms, and renovate the way they do business.

4. Increases Focus on the Core Area of Business

IT services are required for most businesses these days. Not necessarily all of them have IT at the core of their business operations. If they outsource these services to an external entity, they can improve focus on the core area of their business. Plus, you save a lot of money and resources that you were going to spend on maintaining an onsite IT services team. You can use those resources for other aspects of your business.

5. Better Risk Management

Employees might sometimes leave unexpectedly. This can compromise the whole project. But when you work with an IT software outsourcing company, you are under a B2B contract. They cannot give up on a project mid-way through it. This gives a better sense of security in terms of a project getting completed.

5 Cons of IT Outsourcing

Like every other methodology, process, or business activity, outsourcing is not only about benefits. There are a few limitations to it as well. The following are the major cons of IT outsourcing:

1. Lack of control over process management

Sometimes, it might be uncomfortable to completely hand over control of a project and a part of your infrastructure to a different entity. Once you outsource, there is no managerial direction you can give to control the workforce carrying out the project.

2. Communication Issues

Maintaining a seamless line of communication with the offshore team is the most difficult challenge to overcome. As the languages and cultures might be different within the team, it is quite difficult to create cohesiveness.

3. Lack of Internal Familiarity

The team working on your project is completely unaware of your company’s core values and internal structure. This makes it tough for them to grasp your true objective.

4. Lack of Coordination

An IT outsourcing company might be working with remote professionals from different time zones. It can create disruptions in coordination.

5. IT Outsourcing is not Easy

Outsourcing legal services, security, advertising, logistics, or the procurement of raw materials and components is fairly easier. Outsourcing IT services can be tricky as IT is directly associated with all the functions of your business. So, you need to find a perfect outsourcing partner for it.


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