Outsourcing has become more popular than ever over the last decade, as the ability to do so gets easier. This human resources strategy has provided a way for businesses to locate top talent at a substantial discount to hiring full-time employees.
Simply put, outsourcing is the practice of getting goods and services from another business or person outside the organization. This is often used in the tech industry, where there is either a lack of IT labor for certain jobs or the cost of labor is high.
Outsourcing can be used for any position, but we often see businesses using it for non-fundamental roles, specific jobs that support the central IT infrastructure or help with the daily operations of the company.
In its most basic form, outsourcing reduces overhead in producing a product or service, thus escalating profit margins. It’s purely a business decision, with numerous risks and rewards. According to experts, many businesses have mentioned their top reason for outsourcing was to lower operating costs, while some companies have said their top reason was to access particular tech capabilities.
What Would Outsourcing Look Like?
Outsourcing frequently involves programmers and IT professionals hired through an agency. This approach is easier and faster for businesses needing to locate professionals with the attributes and experience they want. Outside agencies take care of all the sourcing, and businesses select the candidates they like.
Once these professionals are chosen they can be put into an office space or permitted to work remotely. Businesses that outsource technology often find remote workers are very results-oriented and driven to meet milestones.
There are a number of essential factors to think about when you’re considering outsourcing your tech team, including impacts on quality, employee morale and resource management.
Quality increase or decrease with outsourcing, depending on how well the outsourcing fits into the overall business plan. Many companies are able to boost quality when there is a lack of the sort of labor or skill sets from existing IT workers.
When businesses outsource some or all IT functions, staff morale can take a hit. This is why it is rather essential for management to explain to why a certain project or function is being outsourced and how the choice fits with other goals. The more staff is aware of the reasons behind the choice to outsource, the better they can come to grips with those choices.
Finally, it is harder to manage a remote workforce than it is to manage employees who are all in-house. IT supervisors thinking about outsourcing ought to have a well-conceived strategy for project management and communications put in place before they kick-off a working relationship with contracted workers.
At SSI, we take a lot of guesswork out of outsourcing so our clients can focus on their core business activities. Please contact us today to find out how we can help your organization.