Wednesday, February 10, 2016

The Risk, Rewards And The Reason For IT Outsourcing

As a business owner, you might have thought about outsourcing some feature of your business. The benefits in outsourcing seem apparent, as publicized by professionals in different industries as the solution for reducing expenses for business functions ranging from IT to human resources, accounting and marketing: it seem possible that a business can be controlled without the need of employing people.

But what more can be gained from outsourcing apart from the end result? Why do many businesses choose this route?  What about the consequences for your business features that are not easily measured?

In this article, we shall discuss some reason, risk and rewards of outsourcing your business IT project.

 Reason

There are several reasons why businesses outsource their IT project, below are some of the top reasons:

 Lessen and control the cost functioning

When your outsource your project, the cost for hiring an employee is eliminated such as management oversight training, employment taxes, health insurance, retirement plans, etc.

 Improvement in a business focus

It is impossible and impractical to be jack of every trade, by outsourcing you are able to concentrate on your core experiences while others (IT service provider) focus on theirs.

 Reduce risk

Being in harmony with the technology that is required to successfully run your business could be expensive and also time consuming. This is because  IT service providers work with many clients and they need to keep up on the best practices in the industry. Typically, they know what is best for your business. The kind of experience they have will extremely lower the risk of making an expensive wrong decision.

 Out of control and difficult to manage functions

In this scenario, outsourcing to professionals makes great difference. But, don’t make a mistake of ignoring the problem that is being solved now, you still need to get involve d even when you might have regained control.

 RISKS

Whenever you outsource some aspect of your business, there is always some risk involved. Some risk like, did I outsource to the right person? Can they fit in with the employees? How is the job going to be done?

Business owners who want to outsource their IT project need to be aware of some of the following risk:

 Some IT project cannot be easily outsourced

IT has great effect on the entire business; right from the normal task of employees to the complex computerized function. Ensure the service provider is more than capable to handle the project.

 Might lose control

Many critics argue than an outside service provider can never be good as a full-time worker who works with other employee in the same management. Other major concern includes privacy of important data and disaster recovery. However, you will need an administrator with experience of controlling IT staff members.

 Possibility of affecting employee moral

This is possible if some employee will be placed aside to substitute their function with an outsourced IT company. Some employee may fear for losing their job.

Most of this risk can be easily avoided when you know what to find in an outsourcing provider and ask the appropriate questions.

REWARDS

Still confused, if you are to outsource your project or not. There are also many rewards in outsourcing your project, such as:

 Access to modern technology

You probably would have noticed how software and hardware turn out to be outdated in the industry. There is no way just an employee can keep up with this. Outsourcing your IT project  give you access to more than one IT expert, they provide effective advice to put your money to work.

 Cost saving

Outsourcing your IT project give you monetary benefits such as bulk purchasing, leaner overhead, software licenses and leasing options for hardware and software. You also gain latent acquiescence with government regulations.

Flexibility

While your employee may have limited assets and capabilities, an IT consultant have access to multiple resources.

 High quality staff

Since it is their main competency, IT service provider look to hire people of great qualifications with good certificates.


Now you know the reason, risk and the reward for outsourcing your IT project to an IT service provider, you need to think about a lot of things. Whether you choose to employ or outsource, you need to build and sustain a good working relationship