IT Outsourcing: Pros and Cons

Owing to the highly competitive world we live in, companies need to ensure that they can deliver on their promises within a timely and efficient manner. Products constantly need to be updated to meet market demands as well as technological developmental requirements. In addition, staff should constantly be up-skilled to ensure that businesses remain fresh and ahead of their competitors.

While all of this is important for every business industry, it is particularly important for IT. As technology drives businesses, IT companies can never be left behind as constant innovation and modernisation are not only expected by clients, but demanded.

But how do businesses stay on top of the constantly changing needs in the business world? Either by updating their own resources or outsourcing business processes.

Outsourcing Pros:

1. Tapping into a knowledge base: Outsourcing business processes enables a company to choose specialists in that particular process.

2. Saving on Labour Costs: In some cases outsourcing could be  much more affordable than hiring personnel to do the jobs you need to fill.

3. Time savings: Recruiting an external agency to control a particular business process could save you time when compared to recruiting new employees as you will first need to establish whether the candidates consist of the required skills, and on the job training might also be required.

Outsourcing Cons:

1. Less control over the outsourced business process: Outsourcing a business process to an agency could prove challenging to companies as the communication gap is wider when compared to on-site employees.

2.100% dedication not always possible: It is important to remember that when outsourcing a business process to an agency, its attention is split between your company as well as other clients. Therefore, 100% dedication is not always possible. However, with company employees 100% dedication can be expected and demanded.

3. Your brand will not be optimised: While external agencies might be experts in particular fields, they are not experts in your business. Therefore, employing people to work in your company and, for example, build logistics software programmes, which suit your brand and your clients requirements could prove more beneficial than outsourcing.