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When it comes to business nowadays, one must be efficient to succeed. A deciding factor for turning a business from “good” to “great” is its modern process management strategies. That is where business process outsourcing (BPO) comes in.
Information technology (IT) outsourcing is a modern way of running a company where leaders tap into an external team of experts to optimize business processes, focus on core businesses, and achieve cost savings.
This article explores how you can maximize business growth with IT outsourcing, the IT functions you can outsource, and the best practices you can implement.
How IT Outsourcing Supports Business Growth
IT BPO is the modern business practice of contracting IT-related functions to a third-party vendor. It is also a strategy to cut operating costs, increase profits, grow the company, and achieve business goals.
The IT outsourcing industry is growing rapidly because of its many benefits. Its market is expected to have a value of $585.6 billion in 2023, and it could grow at a 5.48% compound annual growth rate (CAGR) to become $764.63 billion by the next five years.
But how can you maximize business growth with IT outsourcing? Here are a few ideas worth considering when IT outsourcing:
- Reduce operating costs and increase revenue. Outsourcing removes the need to hire full-time or permanent employees. Your outsourcing partner brings a flexible team of professionals to perform your functions. The pricing is also based on total usage, reducing operating costs.
- Access world-class capabilities. Whether you choose offshore, nearshore, or onshore outsourcing, you can access world-class capabilities with years of experience, giving you an edge in the competitive market.
- Maximize external resources. IT BPO providers let you access their resources, minimizing your expenses in production and shipping. You also need not worry about infrastructure costs since they are the responsibility of your outsourcing partner. The cost is also lower when you transfer processes to locations where materials are cheaper.
- Free up your in-house team and resources. Besides giving your company access to resources that are not available to you, IT outsourcing also frees up internal resources and teams so that you can focus on more important projects that grow the business.
- Use little to no capital investment. BPO services come at a lower cost since they eliminate the need for massive capital investments. Companies need not invest in expenses such as employee recruitment, training, infrastructure, and daily production costs. Businesses can then allocate the money saved from outsourcing to expansion.
- Leverage well-trained experts. IT outsourcing vendors can supply you with expert professionals in their respective fields, whether cybersecurity, web development, or IT infrastructure management.
- Focus on core competencies. A big downfall for many companies is a lack of focus. Companies developing products and services also handle marketing, operations, and accounting. Thus, they lose sight of important matters. Outsourcing IT lets clients focus on what they are good at.
How Companies Can Maximize Growth with IT Outsourcing Best Practices
Working with a third party to perform IT processes usually managed by the client’s internal team is becoming more necessary nowadays. IT BPO helps drive growth, reduce costs, and increase efficiency. A simple cost-benefit analysis of outsourcing shows how much cheaper BPO services are.
Companies of all sizes are outsourcing IT services. You can maximize business growth with IT outsourcing by following best practices. Here are some tips for capitalizing on the benefits of strategic outsourcing:
- Define your IT outsourcing objectives clearly. Identify your project requirements and clarify why you want to outsource.
- Understand the different pricing models, such as fixed price, time and material, and dynamic pricing. Choose the model that best suits your needs.
- Select a compatible service provider. Consider the firm’s technical and domain expertise, team, references, and maintenance and support model.
- Choose the right engagement plan. You may choose between dedicated teams and staff augmentation.
- Establish communication channels to keep all parties on the same page.
- Use a project management tool to track progress. You can also monitor performance by setting metrics and scheduling regular sprints.
- When sharing data with a third party, always consider security and privacy.
IT Outsourcing Services Companies Can Leverage
Maximizing business growth with IT outsourcing only works when you outsource the right processes. Now that you know what BPO is, let us talk about the IT outsourcing services you can acquire.
- Technical support. The round-the-clock availability of tech support agents ensures that a dedicated support line is working day and night. This capability lets your team address customer inquiries 24/7, providing timely and satisfactory service that improves the customer experience.
- Software and application development. Businesses commonly use apps and programs for various reasons. Companies can outsource this function for faster turnaround. Development projects range from commercial apps and custom software to quality assurance testing and consulting.
- Web development and hosting. Web development involves building and maintaining your company website, whereas web hosting is responsible for keeping your site visible and accessible to internet users. Outsourcing is more affordable than keeping these processes in-house.
- Application maintenance. Companies need custom solutions to support their unique application needs. With the world-class technologies of BPO firms, clients can have robust and easy-to-maintain apps.
- Database development. Designing a database that organizes and stores company information requires expertise. This function is necessary for software companies to keep data safe. Outsourcing gives you access to required professionals.
- IT infrastructure management. This process involves managing the client’s IT infrastructure, whether on-premises or cloud-based. It involves 24/7 monitoring and identifying and solving issues in their infancy.
- Business continuity and disaster recovery. This function assists businesses in preparing for and recovering from downtime or disruptions. System failures or natural disasters may be the cause of IT downtime.
- Cybersecurity management. Third-party attacks grew from 44% to 49% year over year. Outsourced cybersecurity is better at predicting risks and preparing for them. It also comes with high-end software that supports its services effectively.
The Bottom Line
IT outsourcing is an effective strategy for companies to maximize their growth. By outsourcing IT functions to a reputable vendor, clients benefit from improved efficiency, productivity, and security. They can also access resources and centralize tasks.
The benefits of IT outsourcing are plenty. Maximizing business growth with IT outsourcing is easy when you partner with the right BPO provider. Carefully researching an outsourcing partner can help ensure a successful relationship.
Planning to outsource IT? Let’s connect so that we can draft a custom solution for you.