top of page

Benefits of IT Outsourcing

Updated: Jan 14, 2022

There has been a consistent increase in the number of businesses that are opting for IT outsourcing. In IT outsourcing, an enterprise will make use of the services of either a domestic or an overseas IT service company for developing apps for a variety of business processes and applications.


There are several benefits from IT outsourcing and lists of major ones are listed below:


“When the IT services are outsourced, the organisation is going to be in a stronger position compared to its competitors who will be trying to get everything done in-house. This should provide the business with an edge over its competitors.”

Access to Experts - The biggest benefit is that a business can quickly utilise the services of professionals with the right expertise in highly specialised Hi-Tech skills. It is the organisation to which the service has been outsourced is responsible for training the personnel and building their expertise. In this context, the business is not burdened while it can make use of the services of talented people. Many times, the expert could be not from the city or geographical area of the business.


Remain focused on core business - In situations where Information technology is not the main activity or core competency of the business, IT outsourcing becomes very beneficial to most business areas. Outsourcing IT activities is going to be of immense value as the organisation can remain focused on its core competency. This greatly contributes to the organisation’s long-term interests by focusing energies on areas most relevant to the business.


Improved effectiveness - When your IT activities are outsourced to a reputed company, you can rest assured of improved effectiveness. Frankly, for a typical business spending time and energy on better IT solutions is not possible. However, for a reputed IT company their focus is on this niche area so they can deliver better solutions.


Speedy deployment of latest technologies - This is one more significant plus point of IT outsourcing. The business is benefited by the quick deployment of new technologies to improve its operations.


When the IT services are outsourced, the organisation is going to be in a stronger position compared to its competitors who will be trying to get everything done in-house. This should provide the business with an edge over its competitors.


Minimisation of IT costs - Outsourcing of IT operations enables the business to reduce its IT and operational costs. When in-house resources are not fully utilised will lower their efficiency and this could cause costs to bloat. A significant benefit to a business by outsourcing to an offshore vendor is that they can hire the best quality talent at significantly lower costs.


Time zone advantage - An article about the benefits of outsourcing shall be incomplete if we do not speak of the time zone advantage. An organisation based in any of the Western countries can just allot the tasks to its Asian service provider, at the end of the day. When the business hours resume the subsequent morning, the task would have made much progress. On small tasks that need to be addressed immediately, this can be a great benefit. This result in the company’s capability to respond faster to its customers and gain a positive reputation among its customers leading to competitive advantages.


A decline in risk - Whatever might be the exact business of an organisation, the risk element is always there. These risks are because of unforeseen economic conditions, competitors, and governmental regulations. But, when some operations are outsourced, the risk that the company bears gets reduced. The risk is shared among the business and its service provider/s.

Recent Posts

See All

How to stay Motivated: 6 pointers of reassurance

So you got your motivation mojo working, good for you. Perhaps you were encouraged by the words of a motivational speaker or got a blunt dose of truth from a friend or family member. Like the quote go

How not to destroy your motivation

Feel like you just can’t rise to the challenge to stay motivated? Feel like it's too much of an uphill climb to your goal, or even walking at a leisurely pace along a flat path to get there is overwhe

bottom of page