By: Katie Johns
If you’re an owner of a small or mid-sized business, IT outsourcing might seem like an attractive option in these Covid19 lockdown situation. That option might be luring for big brands as well. CIOs, if they don’t have the common misconceptions that C-level executives normally have when it comes to IT outsourcing. Like everything else, IT outsourcing has evolved over the years, but is it for better or worse, will be clear once there are no myths related to software outsourcing.
So, let me begin with debunking the most common myths related to IT outsourcing.
1. IT outsourcing is extinct
There are many who believe that software outsourcing is dead and no longer a valuable strategy for enterprises. There are hardly any cost savings. The current trend has moved from labor arbitrage and offshoring to extreme automation and public cloud adoption.
Interesting Read: Business Opportunities in Outsourcing of Software Development
2. IT outsourcing service providers cannot provide Agile and DevOps
In the digital era, there is a need for faster adoption and increase business agility. If businesses don’t adapt, they will lag. IT outsourcing providers are masters in agile development approach and DevOps. They can help make the leap to agile enterprise.
3. IT outsourcing means no more responsibilities
Governance and collaboration are not just theoretical for IT outsourcing providers. They practice it diligently. Clients are involved throughout the project with a focus on providing transparency and clear communication.
4. Enterprise that outsource might lose their employees
There is a need to educate employees that the purpose of outsourcing is not to threaten their existence but to free them up to focus on strategic matters. Leadership must communicate that outsourcing will be a change and the employees will be part of the change.
5. Outsourcing is only meant for big enterprises
Outsourcing gives you the ability to customize package as per specific business requirements. It has nothing to do with company size. As a company grows, the outsourced package can grow as well.
6. Internal IT offers better security
Outsourcing IT to a third party can prove to provide better and enhanced security for the enterprise. The IT outsourcing service provider invests in building a secure and stable infrastructure to accommodate the needs of all kinds of enterprises.
Interesting Read: How My Fear Of IT Outsourcing Services Got Crumpled
7. There will be conflict of interest
Some enterprises worry that there might be a conflict of interest with the IT outsourcing team. It is critical to understand that the role of the outsourcing team is to share their expertise and not take decisions on clients’ behalf. Therefore, the reporting and decision-making process must be clearly defined at the beginning of the engagement.
8. IT outsourcing cannot help with specialized applications
Qualified and experienced outsourcing IT service providers can offer specialized services as needed by an enterprise. Most IT outsourcing companies hire highly talented and skilled resources with deep industry and domain knowledge. They hire more skilled IT staff to support specialized requirements as required by clients.
9. Hiring in-house staff is cheaper
Hiring in-house staff is not only in terms of the person’s cost to the company. It also includes the cost of recruitment, training and providing benefits. In case of IT outsourcing staff, the enterprise only pays for the number of hours the team member invests in the project.
10. Outsourcing is not suitable for startups
It is believed that only mature organizations can benefit from IT outsourcing. The IT outsourcing team can provide a professional extended team of experts for a startup (one that they cannot afford). Startups can get their product/mockup or beta ready much faster if they find a competent outsourcing partner.
Other than the ones listed above, if you still have concerns or questions related to IT outsourcing, we will be happy to address them.