Reasons Why Companies Are Outsourcing for Their Technology Needs  

There has been an increase in the amount of partnerships between IT companies and technology outsourcing suppliers, but why? We discuss four advantages of outsourcing.

Projects Require Skilled Workers

As customers continue to demand new services and businesses continue to expand, companies face the challenge of fulfilling new customer needs and effectively utilizing their resources (Bucki, 2017). To meet those requirements, organizations are seeking advisors and specialists to assists with their projects. Outsourcing relieves the pressure to meet new obligations by allowing companies to focus on delivering their core processes and hiring specialists to perform specific tasks.

Cloud integration

Many companies have thrown away the file cabinets and are shifting to storing information via cloud. However, for security purposes, they are required to take precaution and upload their data on private clouds, as opposed to public storage systems. (Overby, 2017). The need to securely control and cache information has presented providers with the opportunity to offer managerial and analytical services.

Lower Risks and Costs 

IT specialists and advisors can apply their technical expertise to lower risks and costs within an organization. According to Karla Bradshaw in her article, 5 Reasons Why IT Outsourcing Works Best for Businesses , outsourcing technology services “reduces the risk of data loss” and guarantees security in case of breaches. By partnering with third parties, organizations can reduce downtime, decrease the chances of losing data, and avoid spending money that is required to fix errors. Additionally, companies can lower costs by outsourcing specialists for less than what it could potentially cost to pay a provider.

Automation

Automation capabilities are proactive and improve performance. With the possibility of seeing growth within their organizations, businesses are requesting automation services from their third-party providers. As opposed to depending on people to perform certain functions, companies are identifying how digital labor can be used to “take structured tasks and automate them…” and yields opportunities to utilize “intelligent personal assistant(s)” (Thibodeau, 2016).  

References

Bradshaw, K. (n.d.). 5 Reasons Why IT Outsourcing Works Best for Businesses . Retrieved from Dobson.net: https://www.dobson.net/5-reasons-why-it-outsourcing-works-best-for-businesses/

Bucki, J. (2017, July 6). Top 7 Outsourcing Advantages. thebalance.com . Retrieved from https://www.thebalance.com/top-outsourcing-advantages-2533765

Overby, S. (2017, July 19). 7 hot IT outsourcing trends — and 7 going cold . Retrieved from cio.com: https://www.cio.com/article/3208031/outsourcing/7-hot-it-outsourcing-trends-and-7-going-cold.html

Thibodeau, P. (2016, June 14). Automation, not cheap labor, is reshaping outsourcing. cio.com . Retrieved from cio.com: https://www.cio.com/article/3083338/careers-staffing/automation-not-cheap-labor-is-reshaping-outsourcing.html