Outsourcing is the practice of getting services at cheaper cost from another organization or country than possible in our own country or organization.
If an organization hires a service provider for its IT functions rather than doing them itself, it is regarded as IT outsourcing. The service provider can be any other organization, an independent identity or another division. To minimize the cost of IT services and taxes imposed on those services organizations get services from offshore providers. Many organizations opt for outsourcing IT services to enter new business lines and to start-up their operations without investing a lot of capital, time and man power. New organizations can reduce the start-up time to an extent by getting the services from a third party provider and enter in the market immediately.
There are lots of IT services that can be outsourced, but some of the most common are data center operation, desktop support, help desk services, network management, software development and support, disaster recovery and, more recently, web hosting and application management. It is entirely dependent on the organization what services it wants to outsource. Companies outsource IT services due to various reasons, but most of the companies outsource IT services because of operational, financial and technological benefits.
Providing good customer service is an essential aspect of every business now a days, so organizations get these IT services such as technical support, desktop support, software installation support by other organizations. By outsourcing these support services, organizations can focus on their core services such as development rather than providing support services for their products. One other benefit of outsourcing operational services is that organizations can provide 24x7 customer support for their products without much investment, this help them gain the confidence of their customers.
Every organization wants to provide efficient IT services to their customer, therefore technical operations such as customsoftware development, web application and services, technology aid for projects are outsourced. By Outsourcing technical operations, organizations can get access to processes, people and technologies that might not be economically available in their own country. To become a leader in distinct technologies, organizations outsource technical operations by which they can also get access to advance technologies at low costs. This also improves quality and time of the IT services that are delivered to clients.
Financial benefit is in an important reason on which the management always has an eye while outsourcing IT services. Outsourcing made it possible to cut down the cost of service without reducing quality.
For many organizations, IT outsourcing is an attractive option. But before outsourcing the services organizations should take the complete knowledge regarding the background, skills and technology used by the provider and this process is know as knowledge transfer. There are certain drawbacks of outsourcing IT services such as not full control on services provided certain security risks and dependency on other providers for services and if failed can lead to a negative impact on the market.
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