Project Management

IT Outsourcing: The Real Picture

With an aim to tackle market uncertainties and witness tangible improvements in the business, many organizations outsource IT function. Outsourcing helps in retaining limited resources while reducing the operating cost of the company.

In this article at IT Chronicles, Nathan Sykes talks about the factors encouraging the need for IT outsourcing. The global outsourcing market has reached $88.9 billion in 2017 while the present year is expected to boost this figure even more.

How Does It Work?

With the help of remote technologies, the companies need not install, deploy and even maintain required hardware and software. For instance, installation of a data center needs various servers for information collection and storage, a system for hardware temperature control and protection and various software to keep it operational is costly.

Outsourcing the same data center will bring down all the unnecessary expenses. On top of all, the outsourced systems and devices are scalable.

An Ideal Arrangement

Apart from reducing cost and driving seamless operations, IT outsourcing offers access to well-trained and experienced IT personnel that will lead to better customer experience and more streamlined systems for the internal workforce. The author highlights various other reasons that encourage the need for IT outsourcing. Let’s take a look:

  1. Fast-evolving technologies demand regularly upgraded software and hardware that is expensive. By outsourcing, the service provider will be responsible for maintaining operations and upgrading systems, thereby enabling internal IT teams to address other operations and customer issues.
  2. IT outsourcing will diminish the need for captive centers that means IT offshore companies and service providers will be more profitable.
  3. Growing digitization has impacted the need for key skills in mobile development, cloud computing, machine learning and AI, apart from specialized programming, language support, and network engineering. It would be feasible to outsource such proficient teams.

The author states that intensifying operating costs, access to limited skilled and experienced IT professionals, and major security concerns has encouraged the need for outsourcing and remote technologies. Instead of getting into optimized systems, the organizations need to focus on delivering quality products and service to the customers. Read the original article on the following link: https://www.itchronicles.com/practices/the-reality-of-it-outsourcing-in-2018/

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