Pros And Cons Of IT Outsourcing Solutions

it outsourcing solutionsCost savings is the biggest motivator for businesses to opt for IT outsourcing solutions. It is not only financially strategic, the efficiencies and competitive edge your business are likely to gain from the approach are also values you can derive out of outsourcing your IT requirements.

For a more balanced perspective and before you move into the outsourcing process, explained here are common benefits and risks, the pros and cons of getting outsourcing solutions for your company’s important IT needs.

Pros of Outsourcing Solutions

The most obvious advantage of outsourcing your IT is cost savings. This is made possible since hiring full-time staff and running your business locally can be a very expensive affair, especially if you are an Australian business which have to contend with the high-cost of running an enterprise.

With outsourcing solutions offered cheaper by offshore companies, you get cheaper labor cost and the overhead costs are far lower. Difficulties of managing uncontrollable operational costs that are brought about certain IT functions can be resolved by hiring a company offering varied outsourcing solutions.

The result is a company that’s able to manage and maintain its financial health while streamlining cost. The resources are then saved and can be diverted to other more strategic means of business. The resulting company – due to effective outsourcing solutions – is a more successful business that’s able to withstand even the most challenging market conditions.

Human resources and manpower management is also addressed by getting outsourcing solutions form the right third-party vendor. There is an increased flexibility and more competencies that your company can derive out of the strategic outsourcing of your information technology requirements, from hiring a remote web designer, web developer to down-the-line technical support representatives and virtual workers.

Cons of Outsourcing Solutions

There is the obvious drawback of your sensitive or confidential information being tossed or abused by third-party vendor. This disadvantage brought about by paying a service provider for their outsourcing solutions can be very problematic when you let your management lose your control over your more important functions.

Quality is another matter that may suffer or get compromised when the outsourcing solutions obtained have been made with an amateur or unprofessional web development company or freelance IT specialists and consultancies. Not only quality of products that suffer, but also quantities of the output you’ll get when the provider is not the right match for you.

Another debilitating problem that outsourcing solutions obtained from the wrong provider can cause you are legal woes and hidden costs from the original price quotes you received. Terms and conditions not well explained can really bring a lot of headache for you.

Conclusion

So whether or not you are mindful of the pros and cons of outsourcing solutions for your IT needs, your informed decision will spell the difference.

By knowing the problems early on, you get a guide when selecting or choosing your outsourcing partner. But make sure to look for companies that regard with utmost care their partnership and keeping the relationship a long-time affair.

Common Mistakes Companies Commit When Getting IT Consulting

Life as a Consultant

Life as a Consultant (Photo credit: Ikhlasul Amal)

Though not uncommon, a major complain that getting assistance from an external IT consulting service provider is about the waste of investment than hiring a full-time employee that you can train, work with and guide. Done right, however, these specialised IT experts can provide just the right solution for your critical, deadline-driven tasks.

Of course it is never without some risks and tricky side attached to getting outsourced services from an IT consulting provider. However, there are few steps that you can take to ensure jobs are done right and the cost or legal risks are minimised. These IT consultants can provide you training how to use a new software, equipment or technology. Consultants with background in IT can also provide unbiased review of your company’s internal procedures, products or SEO.

Nevertheless, here are some common mistakes to avoid when hiring an IT consulting vendor.

IT Staff Employee or Consultant?

Decide the employment status when hiring consultants. You need to know as legal issues are expected to arise when hiring IT consulting, such as whether someone you’ll hire will be employees or independent contractors for your firm. You already know what’s attached to hiring a full-time employee (withholding taxes, social security fees, medicare contributions, unemployment taxes, etc.) and an independent contractor which doesn’t require those complex processing related to compensations. Consider also how much control and independence you must consider when deciding the employment status of your staff.

Protect Your Intellectual Property

The intellectual property of your company should be regarded with high priority. Don’t hire a consultant who will only hold your Twitter or Facebook fan page hostage or one who have the habit of leaving and not turning data or login information. Address IP upfront when getting an IT consulting services.

Conduct a Thorough Interview

The role of IT consulting firm that you will hire will inevitably be tied to core businesses so it is a must that you conduct an interview. Yes, it’s like hiring an employee but it is a must and you will get help from following up on recommendations and making sure the consultants have experience working with issues like the ones you are presently encountering. Remember that you must look for consultants who understand well how your project is tied to your business objectives to achieve success.

Know your IT consulting firm’s methodology

You need to know how your consultant will approach and do your requirements as this would spell the difference between success and failure. When hiring an SEO expert, knowing the methodology how such IT consulting service is performed will save you headache explaining to your CEO why your website traffic dropped 50 percent or more in the last month. Knowing your consultant’s methodology would give you an idea whether or not black hat techniques are already employed that’s why despite the high ROI you got dinged by Google in a search algorithm update.

With IT consulting service, your company can gain specific expertise just when you need it. These vendors can get your projects completed on time and help you reap the full benefits of your investments. By learning how some challenges might be addressed by knowing the above-mentioned guidelines could spell the difference between hiring a person or a vendor that can add value to your business or leave you miserably out of the dark.