Advantages and Disadvantages of Outsourcing

What is Outsourcing?

Outsourcing is defined as the use of outside resources to perform activities traditionally handled by in-house staff. An organization might want to provide support for their product but hiring professionals and training them can be very tedious process, this is where outsourcing companies come into play.

Why Outsourcing Works?

The outsourced support service providers only concentrate on hiring and training professionals on technical areas and they are expert in these areas. So they can provide high quality support for very low price.

Reasons for Outsourcing:

As companies grow in size and operations, it is very important that the management have to concentrate on core operations rather than providing support. So these operations have to be outsourced to the companies strong in these areas.
Here are some common reasons:

  • Companies can reduce and control operating costs.
  • Gain access to world class resources.
  • Free internal resources for other purposes.
  • Providing support through in-house staff is time consuming to manage.
  • Insufficient internal resources.
  • Share risks with a partner company.

Outsourcing has become popular:

Despite outsourcing having come into a lot of controversies in recent years, people predict that outsourcing is going to grow very fast. Many companies are drawing up plans to outsource work to offshore locations.

Should you outsource support or not?

It is good to have an IT person in the office but one person cannot have knowledge in all the areas. If he has knowledge in all the areas, he will not come cheap. Another important thing is that he cannot work 24/7. So you need a teem of IT professionals, that will be very costly.So does it make sense for small businesses to hire a full-time IT staff or outsource their IT needs? That depends. Checking the advantages and disadvantages will provide a clear picture.

In-House Support: Advantages

Easy access:

The title explains the meaning. You can make him work anytime you want . He will be available at office to start the work immediately.

In-House Support: Disadvantages

Hidden costs:

Hiring a full-time IT professional is expensive . Providing the IT staff with computer/laptop, telephone, payroll account and benefits drives the cost up even higher. You can’t just hire an IT professional, forget to train him to work according to the organization.

Limited technical knowledge:

If you are hiring an IT expert, he might be expert in one field but not all the fields. He might be able to fix a server but he might not be able to fix the printer. You have to hire another IT person or you have to train your IT person in that field. Both are costly and time consuming.

Outsourcing Support Advantages

Less expensive:

Outsourcing tends to be less expensive than hiring a full time IT professional in-house. Many costs such as overhead are spread over several clients . Also, you don’t need to worry about costs associated with training or certifying an IT professional.

Round the clock support:

Many outsourcing companies offer 24/7 support and direct communication with the IT professional through live chat or help-desk or email. You can contact the IT person any time you want. If you have a server or email problem, the tech will walk you through the steps or he will fix the issue even if it is 2 a.m in the morning.

Outsourcing Support Disadvantages

Not part of the team:

Because outsourced IT professionals are there only when you need them to fix a problem, you may need to spend time bringing them up to speed when issues do arise .

Conclusion:

When considering the cost, time, experience and availability, for most small businesses, outsourcing is the best option. Outsourcing tech support allows the management to concentrate on the core business work rather than the tech support. It also allows businesses access to cutting-edge resources and expertise, without the costs typically associated with staying ahead of the technology curve.

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