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There are many areas in which IT work is outsourced nowadays. We also call Outsourced Companies IT Support Companies or Vendor. However, there are certain advantages and disadvantages to outsourcing.
Advantages of Outsourcing
It is one of the major merits of outsourcing. These costs include Operational Costs, Labor Costs, and Overhead expenses. Although, for example, you are not required to hire skilled people in your company, many tasks will be performed by IT Support Companies. In this way, you save labor costs.
When outsourced, you can concentrate on the main functions of your office because all of your backup work has been outsourced. For example, if you have outsourced a computer programming task, you can concentrate on your company’s marketing to make new customers.
The IT Support Companies which organizations select for outsourcing have a team of educated, skilled, and experienced people, which may be better than the people you hire for those specific tasks.
Since a vendor has specialized experience and knowledge, it can do work that may be more productive for your company and increase your organization’s efficiency.
When you outsourced your work, no more employees are required for that work. It means if you require staff for any other areas, you can hire conveniently. You may also hire workers like data entry operators related to the task which was outsourced.
Disadvantages of Outsourcing
Quality of Work
The vendor has signed a contract with you for a business. Their main focus is making a profit, therefore to complete a task in minimum time, the quality of work may be affected. Therefore you must have a proper written agreement with the outsourced company, covering all minor and major clauses. This will save you from conflicts in the future. You should also have regular meetings with the vendor and deadlines for each stage of your project.
Once you have outsourced your work, the control is beyond your boundaries. The vendor may make some decisions on your behalf, which will harm your company in the future. The contract plays an important role, and you should have regular meetings with the vendor to avoid any mishaps.
Since you assign a task to an IT services provider, you have to rely on it and provide your company’s data. However, sometimes data may be confidential, like financial information, payroll, or medical records; therefore, you must be very careful before handing over your company’s data.
Choosing a Vendor
This is slightly a risky process because if you select an outsourcing company that gets the project just for money but doesn’t understand your requirements, then your company may suffer a monetary loss or time wastage. Therefore you have to be careful to select a vendor. For this purpose, you have to go for interviews or meetings with the outsourced company and make a wise decision.
IT SERVICES OUTSOURCES
Some of the IT services which are outsourced nowadays are as follows:
It is challenging and expensive to keep all the necessary computer hardware components in stock in your company. Also, you can’t employ engineers and technicians to repair the equipment at a lower cost. However, hardware vendors are available in the market who provide all the hardware services at reasonable costs. In addition, they provide a service warranty of the equipment, that is, they can not only come to your company within few hours but can replace a spare part for your machine.
There was a time about fifty years ago when companies used to employ a team of Systems Analysts, Business Analysts, Computer Programmers that the and Operators for the development of company’s systems. This was quite an expensive, time-consuming task. Then Software Houses came into existence, and they took the jobs of computerization from companies. These vendors have the expertise and proper software development tools to do the task of systems development and programming. Software development includes Analysis and Investigation of systems, System Design, Algorithms and Flow Charts, Programming and coding, Program Testing, and Quality Assurance.
Network implementation and maintenance is also a critical area. All the computers are not only linked together inside a company via Local Area Network (LAN) but they are also connected outside the world through Wide Area Network (WAN) and the Internet. For the networking process, expertise and software are required, which are easily available with vendors. Hence this work is also outsourced.
Any company, new or old, requires have not only the expertise its website to be developed. Moreover, people to get information about the company visits the website of that company. Nowadays, vendors are present in the market who develop websites and web pages. This is again cost and time-saving.
If a company is running manually and interested in the computerization process, it has to first consult with specialized people who have complete knowledge about the level of automation. IT Support Companies are there in the market, providing complete advice and technical know-how to convert manual systems to computer-based information systems.
Today computer storage in Giga and terra bytes is costly. Many medium and large organizations cannot store huge systems and data. IT Service providers are there to save your backup files. Nowadays, Cloud technology is available with many vendors who can store your information safely, and you can access it timely.
Organizations prefer to get their work outsourced to vendors, who do their tasks in minimum time and save cost. There are several advantages of outsourcing, but if this task is not done properly, it may create problems in the future. There should be a proper agreement between a company and a vendor, including clauses of payment modes, payment amounts and installments, penalties, time frame and deadlines, rewards and compensations, and legal actions.
Thank you for reading!