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The Hidden Costs of Outsourcing

Today everyone seems to be outsourcing, claiming that it cuts cost and is more efficient. But is outsourcing really a practical option for IT? Forbes says yes and no. James Rubin’s article claims that the hidden costs of outsourcing IT far outweigh the benefits, so one must be careful when making such a decision. 

When you use an IT team within a company, you can go to them at any time with your requests. Of course, you can do this when outsourcing as well, but it will often cost you extra. There can be no last minute change of plans when outsourcing. Anything outside the contract will cost extra. Plus, communicating your new need will often waste time. Your company’s IT team may not be the top in the country, but they are familiar with the organization and can get the job done for no extra cost.

However, also consider this: outsourced teams, if under the supervision of experts, can oftentime save you money as well, especially since you will not be responsible for the cost of them gaining new skills through education. Outsourcing allows your company to only get the resources you need when you need them, instead of trying to force your own IT staff into unfamiliar territory. Furthermore, outsourced teams are often more able to expand and contract as needed, allowing you to save money and overhead.

So ask yourself this: is the environment right for outsourcing my IT, or is it right to keep everything in-house? Before making a decision, weigh how much time and effort goes into training, hiring, and retaining necessary staff, and what time goes into finding the right outsourcing operation.

About Rachel Ginder

Rachel Ginder was a staff writer for CAI's Accelerating IT Success and joined the team in 2013. She also helped with social media and research.

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