IT outsourcing is not a new term. Every company mull over the idea of outsourcing at one point in time. For any company, It is always an issue to whether in-built a product or service or outsource it from any other company and use their resources. Whenever it comes to the IT industry, it is a widely used option.    IT-outsourcing is a very promising alternative for using the resources of any other company. However, it requires a detailed understanding of the business alternatives and company’s requirement. To decide on Outsourcing, a client company needs to do a thorough cost and benefit analysis. Let’s understand it in detail:-

Outsourcing: - The literal meaning of the outsourcing, is delegating the responsibilities outside the company. Outsourcing is a very common business practice which has been used worldwide. Every business domain uses it, be it a Real estate, IT, Food Industry, Pharmaceutical etc., you just have to name it. The main objective of outsourcing is cost-cutting and hiring skilled manpower for a particular job. Outsourcing involves those jobs which are less crucial to the company yet important. For example, labour, manufacturing, call centres, Tech support etc. So, there is always a question pops up, what is the need for Outsourcing? Especially in the IT industry, it is preferred to outsource certain jobs and services.

IT-outsourcing is a very common term and widely accepted and used. To understand this, one first has to understand that outsourcing is not a static job , it is variable. I Company outsource for the non-core business processes. In fact, Indian IT industry is famous for outsourcing IT jobs and it provides quality work all over the world. So, what are those factors, which make outsourcing more preferable over Insourcing/ In-built jobs?

Benefits/Cost analysis of business or IT Outsourcing:-

Cost

The first and foremost reason for outsourcing is cost-cutting and saving money. Undoubtedly, cost-cutting is the primary and obvious concern of the companies to outsource the jobs. This is the prime factor, why companies, from all over the world, outsource services from Indian IT Industry. Indian IT Industry provides quality services at very low wages (up to 60 % cost saving for foreign companies).

Efficiency Factor

Whenever a company outsources a service/job, it adds efficiency in its outcome. The outsourced IT Company, put their expertise and experience in the services provide and deliver the best possible outcome with the budget provided.

Focus on core areas

The client company could be the biggest one yet you have to get some jobs done outside the companies in which you might not be having the expertise. Outsourced company is already having strong expertise in the services needed so they have skilled employees, infrastructure and resources so they provide quality services.

Save on infrastructure and Technology

In built the services needed requires investment. The client company might have put huge dollars to get the job done by arranging infrastructure, hiring employees, getting a license, familiarity with the rules and regulations with the technology. These all require money, man and time consumption. On the other hand, with outsourcing, you have pace with infrastructure, resources, access to skilled employees and technology.

Time zone advantage

Outsourcing is kind of a service which breaks geographical boundaries. Companies from all over the world get outsource their job.  The day-night difference zone saves time for the companies, so is the cost.

Quality Services

Outsourcing companies put the all-time and effort in job/service offered which is superior in quality and cheaper in cost.

Outsourcing is a way where a client company entrusts other vendors to get their job done more efficiently and saving money. The client company trusts the outsourced company to value its quality product and image in the market. So, It is not an exaggeration to put into words that Outsourcing over inbuilt job is always a good option unless the client company is ready to put a huge investment into insourcing services.