IT outsourcing is growing rapidly in the IT sector and presents a valuable solution for various companies. Both big companies and startups are using outsourcing to improve their business outcomes.
Outsourcing IT services enables companies to focus on their core competencies and access unavailable resources. This relieves some of the burdens on in-house IT staff, if they exist, freeing them up to focus on other important matters.
At Hashlogics, we work with the top 1% of tech talent to deliver high-quality IT outsourcing services. Our engineers offer customized solutions to assist clients in mitigating risks, minimizing launch times, increasing flexibility, and fostering innovation.
In this blog, I will explain what IT outsourcing is and how it can benefit your business. By the end of this guide, you will have a thorough understanding of IT outsourcing.
What is IT Outsourcing?
IT outsourcing service is an effective way to deliver IT solutions to businesses worldwide.
IT services include various services, such as web design to set up an entire IT infrastructure. Now, many companies partner with IT outsourcing companies to cut labor costs, improve business performance, and access highly skilled professionals.
There are three main types of IT outsourcing:
- Onshore: It means hiring professionals that are located in your city or nearby.
- Offshore: To outsource to nearby countries with the same time zone.
- Nearshore: To outsource to a different country.
As per Clutch, 83% of small businesses plan to either maintain or increase their spending on outsourced business services in 2023. They emphasize that the primary reasons for IT outsourcing are:
- To save money
- Bring industry knowledge to the in-house team.
For entrepreneurs, especially startup founders, IT outsourcing can be a key to accelerating their business growth and saving money compared to having a small in-house team. Even big companies like Google, Apple, and Facebook choose to outsource certain tasks, as it provides access to professionals with diverse expertise.
Three Popular IT Outsourcing Models
Before you sign a contract with an IT outsourcing company, it is important to select a cooperation model.
Let’s explore the three common types of IT outsourcing models.
Project-Based Model:
The client hires a team to do the work that is already planned out. The project manager from the outsourced team takes full responsibility for the project’s quality and performance.
This model is best for uncomplicated projects with predictable and thoroughly researched features.
Dedicated Team Model:
The team hires a team to create a project for them and the team only focuses on that project. Unlike the project-based approach, a dedicated IT outsourcing team is completely engaged in your project. In this model, the outsourced team acts as both your technical and product advisor, providing ideas and suggesting alternative solutions.
The dedicated team IT outsourcing model is best for startups in their early stages of growth, complex long-term projects, and projects with unclear requirements. If you’re looking to validate your idea, find a product-market fit, or develop an MVP to test the market, choosing a dedicated team is the ideal option.
Outstaff Model:
You hire a full-fledged development team and hire separate specialists. Sometimes, the project might need some additional professionals, and you can hire outstaff workers to handle that part of the work.
This model is best for short-term projects or businesses that require additional assistance to quickly expand, especially if they lack certain expertise.
Hashlogics is an outstaffing and IT outsourcing services company that offers various services like product outsourcing and staff augmentation. Here are two scenarios where working with us can bring you significant benefits:
- If you don’t have enough in-house resources within your company and need more help to develop a product, consider IT outstaffing.
- If you lack product expertise and need a team of product managers, designers, developers, and QAs to build your product, then IT outsourcing is the way to go.
Want to learn about “how to outsource software development?” Check out our blog post
Why You Should Use IT Outsourcing?
Now you understand IT outsourcing, its models, and its types. It is important to understand why you might need to outsource and whether it is necessary. Let’s discuss the top 3 reasons why to choose IT outsourcing:
1. You are an Industry Expert with an Idea:
If you are an expert with a great idea that solves a genuine problem, IT outsourcing is the way to go. Your main goal is to quickly enter the market and test your solution. An outsourced team can help you validate the idea, create an MVP to test your hypothesis, and implement changes in your product based on market demands. It saves you both money and time, helping you achieve your goals efficiently.
2. You are a Young Startup:
Early-stage startups often face the challenge of spending money quickly before having a solid team and a ready-to-market product. According to Failory, financial difficulties are the third most common reason for startup failures. Therefore, it is a good step to reduce costs by hiring an outsourced team of professionals while your business relies on investor’s money. You can employ a full-cycle product development studio to address all blind spots and bring your product to life.
3. You Need Technical Assistance:
If your existing solution requires technical improvements such as a backend framework, updates, new language, enterprise application integrations, or UX/UI design, it is best to find an experienced partner. IT outsourcing can cover various functions, and saves your time spent on looking for qualified staff.Wondering why companies choose to outsource their IT support structure? Check out our latest blog post: “What Drives Companies to Outsource Their IT Support Structure?”
Why Outsourcing IT to Hashlogics in an Ideal Option
Hashlogics is one of the leading outsourcing IT companies that provide top-tier custom software development services tailored to your business needs.
Our personalized solutions are designed to optimize your workflows and meet your unique requirements, which can be delivered at a fixed cost or based on time and materials.
· Mobile and web development
· AI app development
· No-Code development
· MVP development
· UI/UX design
· Mobile applications
· Cloud Services
· Software Consulting
· Software testing and QA
· Maintenance and Support
Conclusion:
In-house development and hiring dedicated teams for projects are not feasible in the long run. That’s why IT outsourcing has become popular. Today’s software development industry is highly competitive, and delivering high-quality products quickly is crucial for both clients and companies.
IT Outsourcing firm bring specialized skills and resources, allowing your internal team to concentrate on core business tasks. This collaboration smooths processes, enhances innovations, and improves operational flexibility.
Looking to collaborate on a project?
Tell us your idea or request a free consultation today.
Similar post like this: “Software Engineer Outsourcing: Benefits and Best Practices.”
