If you are going to take a look at the modern trend in one of the most important things that you will understand in the industry is that the number of small businesses and the number of medium-sized businesses is increasing at a very fast pace. They used to be a time when starting a business was a very complicated task but due to the advent of the internet and the influx of globalization, small businesses are able to increase in number, and starting a business has become easy. No all the businesses out there have many options to reduce the cost and still be effective in all the business operations and one such option that we are going to discuss in this blog post is outsourcing.

 

Gone are those days when all the businesses have to keep every business operation in-house and bear the cost of the expensive in-house operation and setup. Now most businesses especially small and medium-sized businesses are moving to the option of outsourcing as this allows the businesses to harness the power of the experts without actually having full-time employees and setting up a proper system. Well,  the same approach is being used in the field of IT as each and every business out there is now thriving on the power of IT.

 

If you are running a business then there are maximum chances that you must be using the power of information technology in some way or another and if you are looking forward to getting down the cost and still be effective at information technology then you will have to make so that you are outsourcing it to a third-party expert. But are you really aware of the advantages and disadvantages of outsourcing or IT to a third-party expert? Let's find out through this blog post.

 

Advantages

 

Cost-cutting

 

One of the biggest advantages of outsourcing is cost-cutting. When you are going to outsource the IT function of your business to a third party company then you will not have to spend money on hiring full-time employees and in addition to this, you will not have to spend money on the IT set up as well. These two are the biggest expenses for any small business and few are able to get rid of these too expensive when you are able to save a lot of money.

 

Expertise without hiring

 

If you are looking forward to streamlining your IT department then you will have to make sure that you are hiring some of the best it implies out there but if you are running a small business then hiring full-time IT employees can prove to be a practical option for you. But you can still thrive on the expertise of professional IT employees without hiding them full time if you will go for the option of outsourcing IT functions to a third-party company. The IT experts in the third party company are going to act as an extended part of your organization and this is why most of the small businesses are shifting to the option of outsourcing it without any second thoughts.

 

Easy scaling

 

If you are running a small business then there is maximum cancer that you will have to deal with fluctuating both and this can go both upwards and downwards. In such a situation we will have to make sure that you are fine-tuning your IT department to fit the needs of your business at the current state. If your business is using the outsourcing IT model then their maximum cancer that will be able to scale up and scale down as per your need as all the third party it experts out there are highly is coming scalable and that always benefit for all the small and medium-sized businesses out there.

 

Disadvantages

 

No complete control

 

This is one of the biggest advantages of outsourcing IT functions to a third-party company as in the case of a third-party company you will never have complete control over the quality and the process of the IT functions. There are many businesses out there that find the idea of a third party company managing their department as an odd option and this is what it leads to the loss of control over the IP function but this doesn't mean that you will lose complete control on the IT functions but you will not have as much control as you would have in the case of in-house IT management.

 

Quality issues

 

There is no denying the fact that there are many businesses out there that provide high-quality third-party IT services but this doesn't mean that all the third-party IT service-providing companies out there are good. This simply means that if you don't have the skill and the expertise then you will end up choosing the wrong IT third-party provider and this will ruin your whole plan of driving on the advantages of outsourcing IT functions. This type of decision is also going to affect the quality of the outsourced functions and this is another issue that you will have to deal with while outsourcing it functions to a third-party company.

 

Communication issues

 

If you are going to deal with and outsourced it third-party company then you will have to make sure that you have proper and clear communication with the third-party company otherwise you will not have updates about the process and the functions and the issues regarding your IT department. There are many businesses out there that will not able to embrace the power of outsourced functions just because they were not able to have a clear basis of communication from the third party company and this is where you have to be really precise and come up with the proper plan.

5 Pros and Cons of Outsourcing IT functions for Startups

09 September 2021

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