What is outsourcing?
The concept of outsourcing implies the transfer of a specific part of the duties and tasks to a third-party contractor. Thus, the customer company receives those services that it cannot perform independently. In turn, the contractor ensures the high-quality performance of the tasks assigned to them by a team of own specialists.
Outsourcing has proven itself, especially in the IT sector, as recruiting a developing team is tricky, energy-intensive, and often unprofitable. It is much more efficient to address any recruitment agencies and hire a remote team of developers.
In outsourcing, communication between the customer and the contractor occurs according to the client – project manager – team of specialists model.
In this model of outsourcing, the client company usually discusses all issues with the manager of the contractor company, and the project manager distributes tasks to their team of specialists and monitors the progress of the work.
It should also be understood that in outsourcing, some concepts are divided into outsourcing of personnel and outsourcing of business processes.
In the first case, certain tasks are delegated to one of the contractor’s teams. And in the second case, the contracting team manages a whole segment of work within the customer company.
IT outsourcing services have several advantages:
- Quick start. When starting a business, you can immediately transfer the implementation of urgent IT tasks to an outsourcing company with a ready-made team of professionals who will directly get to work. This opportunity is especially significant for start-up companies.
- Ability to attract highly qualified remote workers from anywhere in the world. Since the choice of an outsourcing agency is not limited by location, there is always access to many specialists with unique skills.
- Reducing the burden of managing employees by delegating responsibilities. When outsourcing, the contractor forms a team for the project, distributes duties, and controls and pays for the work of their specialists on their own.
- Reducing costs by hiring professionals to do temporary work. Paying for an outsourcing company’s services is much cheaper than paying the salary of the specialists employed on the staff. Besides, office space is saved since the provider’s team works on their territory.
On the other hand, there are also some disadvantages:
- Risk of leakage of information and important data. When you hire professional employees from outside, such a risk can lead to losses; in some cases, even business collapse always exists. Therefore, it is essential to contact companies that have established themselves in the market with positive reviews and a good reputation.
- Possible difficulties with constant communication. In conditions of remote collaboration, especially if there is a time difference between the customer and the contractor. In this case, proper communication channels and well-established cooperation methods are needed.