In today's world of constant change, the ability to be flexible and ready for challenges has become a key factor for success for companies. In this context, outsourcing IT specialists offers companies the ability to flexibly secure the necessary personnel capacities through external suppliers. What are the benefits of this approach, how has the outsourcing of IT specialists evolved, and what does the future look like?
History of IT Specialist Outsourcing
The history of IT specialist outsourcing dates back to the 1980s, when the expansion of personal computers and the digitalization of companies began to create a need for administrators to manage new technologies. These roles were difficult to fill full-time, and this is where outsourcing began to assert itself.
With the internet boom, the scope of IT specialists' work expanded, and the demand for their outsourcing receded. Thanks to the rapid development of IT, in the last decade, outsourcing IT specialists has once again become a key tool for companies of all sizes.
What is IT Outsourcing?
IT outsourcing is the practice of a company handing over part or all of its IT functions to external suppliers. This external company may be located in a country different from the organization's location. Nowadays, for example, you can have a programmer from India and a coder from Poland.
You can read about how to properly request IT specialists from suppliers in the article "7 Steps to an Effective Demand for IT Capacities".
Benefits of IT Specialist Outsourcing for Companies
- The IT sector is evolving faster than ever before, and some companies may struggle to keep up with training internal employees and developing their skills. Outsourcing helps by bringing new and very well-trained professionals into the company. Companies need to be able to flexibly respond to economic downturns or growths, client requirements, and competitive battles.
- Outsourcing makes it easier to quickly reduce IT capacities, but also to recruit very quickly, which is sometimes not possible with traditional recruitment of internal employees. Outsourcing IT specialists allows for a reduction in operational costs by having part of the IT capacities taken over by an external supplier paid from capital expenses.
- This allows management to avoid problems with approving new internal positions. Zero risk of so-called Vendor Lock-in - eliminates the risk of the supplier holding know-how about the entire project, allowing the client to more easily change suppliers without high costs.
- The client is not dependent on a given supplier and does not have to order services only from them. A common example of this situation are FTFP projects and subsequent servicing of the developed solution. On the other hand, a client can have several suppliers for outsourcing IT specialists and can terminate or expand their services without obligations.
Potential Problems and Solutions
However, the service of outsourcing IT specialists may not suit every company. Several factors need to be carefully considered to avoid problems that could outweigh the benefits outsourcing brings. What needs to be thought through?
- Outsourcing IT specialists does not always mean outsourcing managerial responsibility. Often it's "just" about providing IT specialists who need to be managed on the client's side. If, for example, the client has trouble meeting deadlines, outsourcing may not bring the desired effect, but rather increase the workload of the company's management. In such a case, the solution is to first strengthen the management itself and then recruit additional roles.
- Outsourcing is not suitable for all types of companies – for companies without a constant number of internal IT employees or for those planning too many external capacities, outsourcing can become unnecessarily expensive. In this case, it is better to choose a supplier variant (Fix-Time-Fix-Prize).
- Outsourcing can sometimes cause dissatisfaction among internal employees, who may fear handing over competencies to externalists, and thus their own jobs. If the outsourcing supplier does not follow the security procedures set by the client, it can pose a security risk.
- A often visible example in practice is the use of subcontractors. Third parties operate at the client's without their knowledge. Therefore, it is necessary to cooperate with reputable companies with verifiable references and organizational structure.
Are you interested in the types of outsourcing and cooperation you can use? Read the article where we introduce not only IT outsourcing but also Umbrella Services, Onshore, Nearshore, Offshore, and Body leasing.
What are the future prospects?
The pandemic accelerated the need for companies and government administrations to digitally transform their processes. Outsourcing IT specialists thus becomes key to implementing new technologies. It also showed how necessary it is for companies to be flexible, especially in hiring and firing employees. With the advent of cloud technologies, the way companies outsource IT is changing. The cloud allows for quick and efficient access to information and applications, supporting global collaboration.
Thanks to the greater use of home office and remote work, companies can collaborate with specialists from abroad to a much greater extent than they might have imagined before. This trend leads to greater opportunities not only for companies but also for the specialists themselves, which is a path we fully support!
To make the most of outsourcing IT specialists, it is, of course, crucial to find the right partner. Companies should look for an experienced and vetted supplier who shares the same vision and values. A good start to a relationship with a new supplier can be a smaller project on which you can test mutual trust, way of working, and that you are on the same wavelength.
Are you currently looking for a partner for your successful project? Get in touch with us; we look forward to it.
Do you like the option to choose from currently available IT specialists? Take advantage of our pool of free IT experts who are currently looking for a new project and choose the one you need.
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