IT outsourcing – cooperation of two business partners with one goal
Grzegorz Papaj, 9 August 2018
IT outsourcing is a popular service – approximately half of the companies on the market use it. The most frequently provided IT services include the development of dedicated software, desktop or mobile applications, maintenance, database services, management of IT infrastructure, and help desk services. But what are the advantages of outsourcing?
Many industries offer outsourcing services, but almost half of this market consists of the IT segment. According to the Information Services Group report from 2018, the worldwide value of outsourcing increased by 13% and currently amounts to over 64 billion USD. Also, KMPG research shows that almost 44% of companies choose IT outsourcing more often than 5 years ago.
IT outsourcing – advantages for employer
As we mentioned earlier, IT outsourcing is a common solution and has a lot of advantages. In the KPMG/Harvey Nash report from 2017, industry leaders from all around the world ranked the advantages of outsourcing. In their opinion, IT outsourcing:
• engages external employees to work and as a result, internal staff can perform more important tasks
Over 49% of companies decided to choose IT outsourcing because it enables them to transfer part of work to external teams and let internal teams perform more important tasks. By choosing outsourced programming, companies benefit from the best-qualified employees and save time on recruiting process. Also, IT outsourcing providers help the company operate more efficiently.
• provides access to skills not available in companies
Technology is a key factor in gaining a competitive advantage. That is why IT service providers (over 46% according to the research) are commissioned to perform tasks that cannot be done by any employee in the company. Nowadays, the IT market cannot follow the demand and that is why qualified experts are an important form of IT support, provided not only as ad hoc IT services but also as regular and constant help.
• optimize the costs of IT services
Although IT outsourcing is an effective way to optimize costs in a company, according to 45% of executives, in comparison with recent years, it isn’t a key factor in outsourcing IT tasks anymore. IT services providers are a more important element of business relations and a key factor in the technological transformation of business than a source of cheap employees. IT experts can become a key and integral element of the company because they contribute the best technology, knowledge, and skills.
• improve the company’s innovation potential
15% of companies consider IT outsourcing as an efficient way for development. Sometimes the company dev team can be limited by certain rules or operation patterns. Fortunately, external IT experts work unorthodoxly and have the courage and skills to try various technological solutions. This way, they can accelerate the development of the company and help stay ahead of the competition.
How properly choose the IT outsourcing company?
The most significant factor is to establish the goal which the company commissioning IT outsourcing wants to achieve. For better verification of the company’s effectiveness, the purpose should be compatible with the SMART concept. This means that the goal should be: specific (target a specific area for improvement), measurable (quantify or at least suggest an indicator of progress), assignable (ambitious, but manageable), realistic (it has to be a clear step forward), and time-related. Goals like “increased profits” or “an application which will sell” aren’t sufficient. Concrete guidelines and instructions are necessary to establish cooperation between the company and an external provider.
What is more, to accelerate the development, it is recommended to choose an IT outsourcing services provider who has the experience, knowledge, and skills, as it is usually a business partnership for years. When choosing between outsourcing developers or outsourcing IT services, it is worth thoroughly go through the contract – negotiate and tailor. As a result, there will be no misunderstandings.
Many companies often decide on outsourcing from abroad because of the costs. Polish software development companies are great nearshoring and offshoring business partners. ImpiCode cooperates with companies from European countries such as Germany, Switzerland, Sweden, and the United Kingdom. That is why we understand business operations and work culture.
European Union General Data Protection (EU GDPR) - IT outsourcing and sensitive personal data.
With the development of technology, it is necessary to remember about safety on the web. IT outsourcing services have to prevent data theft, use security automation, and carefully analyze risks. To implement EU GDPR standards and use appropriate security regulations, the chosen IT company should conduct security audits and regularly update its strategy. Thanks to proper technologies and methodology, this will guarantee the protection of sensitive personal data.
Because of these safety regulations, the cooperation between the company and the IT outsourcing provider should be concluded in writing. The agreement should include clauses on the non-disclosure of data, to which the provider has access, as well as information about specific security measures which prevent security breaches.