Uprite IT Services

IT Outsourcing: A Complete Guide

engineer managing servers to illustrate IT outsourcing
March 14, 2023

If you’re an entrepreneur, a small business, or a startup that needs an IT department, or you want to outsource your IT needs to help with your technology and infrastructure, IT outsourcing services might be right for you.

It’s becoming the future norm. Many companies outsource and use external service providers with deep knowledge of the IT industry to take full responsibility for

  • your computers,
  • tablets,
  • smartphones, and
  • everything connected to your infrastructure.

The outsourcing company will have the technical expertise to handle your complex projects, business needs, web design, app development, and support solutions for a fixed cost – within your country and even within the same time zone!

These IT outsourcing services are provided by affordable top talented developers who put your organization front and center.

That means no hiring process and no labor costs from a DIY approach. Your internal resources can then continue with their business process while your dedicated team of talented software developers work on specific project-based solutions.

Here’s a complete guide to IT outsourcing.

Programmer with laptop to illustrate IT outsourcing

What is IT Outsourcing?

Various Types of IT Outsourcing

Different IT Outsourcing Models to Choose From

Advantages of IT Outsourcing Services

When Should You Use IT Outsourcing Services?

Which Industries Can Benefit from Outsourcing IT Services?

Benefits of IT Outsourcing for a Software Development Company

What is IT Outsourcing?

Outsourcing services doesn’t necessarily mean you don’t have an IT department. Although, if you currently don’t, it might benefit your organization to outsource business functions, like consulting and support solutions.

With an IT department, outsourcing services provide a helping hand.

Generally speaking, outsourcing services means you partner with a company to take over your IT responsibilities. A bonus is that the process saves you money!

You can choose to have an

  • onshore provider,
  • offshore outsourcing provider, or
  • nearshore outsourcing team.

However, you can also outsource your IT and keep your in-house IT department.

The flexibility of this business model allows for project-based custom solutions for your IT needs and requirements.

Now we’ve recapped IT outsourcing services, let’s go over various types of Information Technology outsourcing.

Various Types of IT Outsourcing

team looking at types of IT outsourcing

The world of information technology categorizes two major types of IT outsourcing. The first type of IT outsourcing services revolves around a geographical location. These are:

  • Offshore: Moving your IT to another country like the Philippines, China, or India.
  • Onshore: Keeping your IT services in the same country as your organization.
  • Nearshore: Moving your IT to a nearby country that shares a border with your country. If you’re in the US, this means moving it to Canada or Mexico. Nearshore outsourcing allows you to stay within the same time zone.

The next type of IT outsourcing services categorizes type of service. This includes the following:

  • Data protection
  • Data backup
  • Network security
  • Troubleshooting support

Data protection, data backup, and network security are vital in today’s high security-risk information age.

Data backup and disaster recovery is essential and an integral part of your network security. By outsourcing your network security, you proactively participate in protecting your data and its safety.

Another common IT outsourcing service type includes troubleshooting support. You know how time-consuming that is!

Outsourcing this aspect helps your IT department concentrate on important business matters while your outsourced dedicated team troubleshoots your machines.

Regardless, outsourcing your IT is not limited to the above. There are a multitude of IT services outsourced.

Other examples of the type of services you can outsource include:

  • Software development: Managing the complex development of software during all phases.
  • Consultancy needs: Assisting and advising your organization’s IT business needs.
  • Managed IT services: Offering server hosting or application hosting.
  • Infrastructure services: Keeping an eye on your infrastructure, from hardware to software, network installation, updates, and all technical infrastructure services.
  • Data center activities: Manage all your data needs, from data fetching, processing, and data storage.
  • Strategic planning: Plan your IT from idea to implementation.

Your business can choose from any geographical or project-based criteria you deem necessary. Information technology outsourcing comes with many advantages regardless of what services you outsource.

From here, you can choose different outsourcing models that best fit your needs.

woman working with a server to illustrate IT outsourcing

Different IT Outsourcing Models to Choose From

IT outsourcing models are often referred to as cooperation models.

Cooperation models refer to the way your outsourced team and your in-house dedicated team collaborate to find software solutions, provide app development services, or assist businesses.

Here are the three most common models:

  • Project-Based Model
  • Dedicated Team Model
  • Outstaff Model

Let’s look at the detail of each outsourcing model…

Project-Based Model

Hiring an outsourced team providing a project-based model requires a project manager to take full responsibility of a planned project.

You can best utilize an outsourcing model for linear projects with clear deadlines, like software testing or web development.

Dedicated Team Model

A dedicated team model is when outsourcing companies work on a singular dedicated project. In this outsourcing model, the outsourced team also provides technical and product advice to suggest alternatives for business growth.

Use this outsourcing model during your early startup stages for business growth and complex long-term projects.

A dedicated team model can help business transformation on a global scale. It’s instrumental during longer, more complex app development projects that require an outsourcing company to also find product-market fit.

Outstaff Model

The final outsourcing model on our list is called Outstaff Model.

The Outstaff Model is great for short-term projects requiring specialized professionals – like for software engineering and cloud solutions, for example.

These three outsourcing models are managed services provided by an outsourced team that want to aid the digital transformation process of your organization at significant cost reduction.

So, before signing any outsourcing contracts, ensure you understand the three models, the benefits of co-managed IT, and the advantages for your organization.

Advantages of IT Outsourcing Services

man with coding on his computer screen to illustrate IT outsourcing

IT outsourcing services come with a lot of advantages. Some of these advantages include the following:

  • Saves your business money (it’s a cost-effective solution)
  • You have reliable IT service
  • Saves you time
  • Improves productivity

Let’s go in-depth so you see how these advantages directly benefit your business.

1 IT Outsourcing Services are Cost Effective

One of the main reasons businesses turn to an IT outsourcing service is the cost-benefit.

An in-house IT department requires you to pay employees a salary, and give training, benefits, and certifications.

An IT outsourcing service allows you to pay per project, services rendered, or per contract.

This allows your organization to re-invest in your company, reduce costs, and save money.

With an outsourced service, you pay for the latest technology, expert advice, and the talented developers’ deep knowledge your complex project requires. That’s a major win for any organization!

2 Information Technology Services Give You Reliable IT

Cybersecurity threats, hackers, and ransomware attacks occur day or night.

Whereas an in-house IT employee may work Monday through Friday 9-5, the reliability and security an outsourced IT provider gives you are immense.

They remotely monitor and manage your IT systems around the clock. That includes when your information systems are at their most vulnerable, and during digital transformations.

These outsourced yet talented developers are experienced, reliable, and proficient.

In other words, you’re saving money while receiving an outsourced team that gives you the same or better benefits than hiring in-house staff. And that peace of mind is priceless.

3 An Outsourcing Company Saves You Time

Outsourcing your IT not only gives you access to the latest technology and software but also means project-based contracts happen simultaneously while your in-house team works on other vital requirements.

However, an important distinction between an in-house IT department and an outsourced team lies in the limitations of your in-house IT infrastructure.

When technology advances, your in-house team can lack the time to update your infrastructure as well as keep up normal business functions.

An outsourced IT team, on the other hand, uses up-to-date, industry-standard technology, keeping IT operations running smoothly – which saves you time.

An IT Service Improves Productivity

Outsourcing your IT operations allows you to move forward quickly. Your team doesn’t need to re-train, re-certify, or re-learn project-based tasks. Digital transformation allows greater productivity too.

Outsourcing gives you top talent with deep knowledge of advanced technology and software. Their industry expertise provides high-quality work with speedy execution times and cost efficiency in mind.

Now that we’ve covered many advantages of outsourcing your information technology, you must wonder what the disadvantages are!

woman with network graphic superimposed

Are There Any Disadvantages?

In truth, occasionally! But they can be overcome by careful choosing of your provider.

But perceived “disadvantages” to outsourcing providers might include:

  • Company culture
  • Control of outcomes
  • Security concerns

Company Culture issues

An in-house employee is invested in the culture of the company. But outsourcing IT can mean losing this. The dedicated team might not feel like an extension of your own IT department.

Control of outcomes

Even if your IT service provider is nearby, you can’t monitor how they handle projects, which can create inconsistency with your other existing or ongoing projects.

Security concerns

Hiring a dedicated team from an outside company means they gain access to confidential company information. This is a valid concern. So, perform due diligence and ensure your chosen company has airtight cybersecurity and proper IT operations for your IT systems.

When Should You Use IT Outsourcing Services?

professional development programmer to illustrate IT outsourcing

You might want to outsource to

  • cut costs,
  • grow as a company, or
  • work with top-tier experts within the industry.

Or you might have doubts about your

  • IT,
  • data protection, or
  • cybersecurity.

Outsourcing is then a good move. Outsourced providers handle outages, breakdowns, data loss, and malware incidents.

Another reason to outsource is if your small IT department simply struggles to manage.

Overall, outsourcing your IT gives you a partner that takes on the daily stress of troubleshooting so you can get back to what’s important to your business. Your internal IT department can work on projects that move your business forward instead of trying to keep up with the infrastructure.

To help decide, ask yourself the following questions. Do you need…

…IT talent?

Top talented developers are scarce. However, IT outsourcing companies use remote methodologies to work with talented individuals that have the knowledge you require to keep your organization on track.

…assistance with a complex project?

Sometimes you require external expertise with complex projects that need specific knowledge. Having technical expertise can give you the edge you’re looking for.

…help with your tight deadlines?

With the right personnel at your side, your tight deadlines disappear. That’s because having the right talent allows for a smooth workflow that makes your projects seem easy.

…support and consulting services?

An IT outsourcing service is a partner that guides you. They provide support and consulting services to advise you on projects that are off track.

…temporary super-specialized technical roles?

This is perfect for outsourcing. Many applicants will not want temporary positions. However, super-specialized roles or temporary projects are easily handled when outsourcing.

…to save money?

Instead of hiring an entire department, you can opt for a service that does everything an IT department does. They handle your IT and its infrastructure for a fraction of the price.

Which Industries Can Benefit from Outsourcing IT Services?

If you’re on the internet, you can benefit from outsourcing your IT services. However, some industries can benefit more than others.

To truly benefit from an external provider, consider your needs and industry.

  • Maybe you’re on the verge of hiring IT staff, have a lot of data to secure, or have an IT department but need an extra set of hands.
  • Or maybe you’re in one of the industries that benefit greatly from outsourcing:
    • Transportation and Logistics
    • Medical
    • Construction
    • Finance
    • Legal
    • Education
    • Tech and software development

Outsourcing your needs brings you a dedicated team to provide the cybersecurity to protect you and your clients’ sensitive data.

However, a third-party provider can also help per project, assist with troubleshooting, logistics, data and cybersecurity, and general assistance. Therefore, consider your organization’s needs before you rule out IT outsourcing.

Benefits of IT Outsourcing for a Software Development Company

software development team in an office

If you’re a software development company, IT outsourcing works in your favor, granted software and app development take time.

By outsourcing your project, you can greatly accelerate the time it takes to complete it and put your product on the market.

Other than a fast turnaround time, benefits include:

  • Achieve product quality.
  • Hire highly skilled workers at a lower cost.
  • Future-proof your project from the start.
  • Save money.
  • IT outsourcing companies often have highly skilled employees trained in all areas of tech.
  • By outsourcing your project, you can guarantee things stay on track.
  • Most companies, big and small, from startups to Fortune 500, and even global companies working on a global scale, can benefit from outsourcing software and app development.
  • They can manage the marketing of your software or software services after completion.

Uprite Offers Co-Managed IT Services

With all of the information above, outsourcing your IT might sound overwhelming. But you don’t have to do it alone. Uprite can provide you with a smooth IT experience through our co-managed IT services.

We’re the technology partner you can trust – taking on the daily stress of IT troubleshooting with our future-proof IT solutions. And, above all, we support you with compassion and professionalism.

We serve many SMBs in the wider Houston, San Antonio, and Dallas areas. Contact us today and let’s talk about your IT outsourcing needs.

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