IT Outsourcing: what it is, advantages and when to adopt it in your company

IT outsourcing is the outsourcing of technology services to gain efficiency, reduce costs and scale operations. Discover the types and when to apply this strategy.

As companies evolve, the need to scale their technology operations efficiently becomes increasingly urgent. In this scenario, the IT outsourcing emerges as a strategic solution.

In addition to reducing costs, improving systems performance and freeing up the internal team to focus on core business, IT outsourcing has different models and advantages.

In this article, find out when is the right time to adopt it. Let's go!

Check out the topics covered below: 

• What is IT outsourcing;
• Types of IT outsourcing;
• Reasons to outsource;
• When it is important to invest in this tool.

What is IT outsourcing?

IT Outsourcing is the term used to describe the outsourcing of a company's information technology services.

In other words, instead of maintaining the entire structure internally, the organization hires a specialized company to take care of part (or all) of the infrastructure management, support, systems development or security.

The objective is clear: increase operational efficiency, reduce costs and allow employees to focus on what really matters — the core business.

According to the book IT Outsourcing – Impacts, dilemmas, discussions and real cases, This strategy is ideal for organizations that do not yet have sufficient maturity in controlling and managing technological processes — and want to delegate safely to accelerate their growth.

Types of IT Outsourcing

They exist three main outsourcing models, which vary depending on the location of the supplier and the level of integration with the contracting company. Learn more about each one:

Onshore

Outsourcing takes place within the same country. This guarantees advantages such as:

• Fluid communication (without language barriers);
• Absence of time zone differences;
• Greater control and cultural proximity.

On the other hand, the cost tends to be higher compared to international models.

Nearshore

In this model, the contracted company is located in a neighboring country or geographically close. It is an intermediate solution between onshore and offshore, offering:

• Cost reduction compared to onshore;
• Lower cultural and linguistic barriers;
• Faster communication than offshore.
  

Offshore

The best-known model — and often the most economical. Here, the supplier is in a distant country, such as India, China or Eastern European countries. The main attractions are:

• Qualified labor at a lower cost;
• Rapid scalability of services;
• Significant reduction in operating costs.

However, special attention must be paid to managing time zones, cultural differences and communication barriers.

What are the advantages of IT outsourcing?

Adopting IT outsourcing can transform the dynamics of your company. See the main benefits:

• Access to highly qualified experts;
• Constant technological update, with the best market practices;
• Agile correction of systemic failures and errors;
• Greater focus on core business;
• Improved operational performance;
• Specialized management and recurring maintenance;
• Greater security, availability and continuity of systems;
• Reduction of fixed costs with internal teams;
• More competitiveness in the market.

Companies that adopt this strategy begin to operate in a leaner, more strategic and adaptable way to market changes.

When should your company invest in IT outsourcing?

There are specific moments when IT outsourcing stops being an option and becomes a strategic necessity. Here are some warning signs:

• Limited or outdated infrastructure
  
• Increase in IT operating costs
  
• Need to increase the competitiveness in the sector
  
• Lack of qualified workforce internally
  
• High volume of emergency maintenance
  
• Desire to scale technology without overloading the team
  
• Insecurity with compliance, backups and system continuity
  

If you have identified one or more of these points, Maybe it's time to consider outsourcing as an ally for the digital transformation of your business.

Outsourcing as a bridge to growth

More than an operational practice, IT outsourcing is a strategic tool.

It allows companies to move towards innovation in a more structured way, without compromising their focus on their core business.

By choosing the right partner, your company gains time, quality, security and scale.

Do you want to improve your company's technological performance?

At follow55, we offer customized technology solutions to accelerate the digital transformation of your business. Our approach is consultative, strategic and results-oriented.

Contact us and learn about our solutions.