Organizations due to today’s business environmental forces have to think and plan their futures carefully. Forward-thinking companies can attest digital transformation is on its way to becoming a condition for surviving on the market.
The primary reason for poor returns on their investments was a lack of success in scaling innovations beyond the early pivot work. Digital transformation means more than just sprinkling separate technologies around the business to target particular problems. Instead, it is a very large undertaking that transforms the way organizations capacity to achieve their objectives.
What is digital transformation?
Small organizations and large enterprises use digital transformation as a buzzword, which demonstrates its importance. In essence, using technology to revamp the old operating models, enable experimentation, automate processes, accelerate operations, and become nimbler in the ability to respond to customer needs clearly define digital transformation.
All in all, for companies to gain competitive advantage and deliver better services to their customers, they have to launch and scale a digital transformation project successfully. So many companies are choosing to outsource digital transformation because in-house IT teams may not have enough time or appropriate expertise on how to complete a digital transformation project.
Research from Accenture shows 90% of companies contract third-party solution providers to help them with at least one component of their digital transformation. Does your company outsourcing a digital transformation program to an external company as well make sense? Read on to learn the benefits related to outsourcing IT services.
BENEFITS OF OUTSOURCING IT SERVICES
What is outsourcing IT services all about?
The use of external service providers to deliver IT business processes, applications, and infrastructure solutions that help companies grow to define IT outsourcing. Businesses can make the most of IT expertise by teaming up with an experienced and skilled external provider without investing in building an in-house team of experts. Companies get to take advantage of top engineering skills, bring products or services to market faster, and reduce IT costs.
Does outsourcing IT save money?
Building an in-house IT team may seem less expensive than partnering with an external provider. However, consider all factors that come into play when hiring new employees; account salaries, hardware costs, software licenses, cloud service subscriptions. Besides, maintenance costs and all expenses are required to keep your team up to date with current trends and happy.
So many companies are choosing outsourced solutions, though, depending on the quality and scale you’re looking for, the cost of outsourced IT services can vary greatly. Also, prices of IT services are fixed when in-house are now variable because outsourcing helps companies control their capital outlay, thus frees up capital to be used in other areas.
Why are companies outsourcing IT?
Many benefits get enjoyed by companies outsourcing IT:
- High availability: Outsourcing guarantees uptime and smooth operations because reliable and experienced companies offer options and teams ready to get into work. Besides, there’s no time spent on training new hires.
- Expertise and experience: In-depth expertise and excellent skills by an external team are experienced in your business. Also, the team adds plenty of operations by applying their knowledge to your business processes right away.
- Scalability and flexibility: IT supports to fast-growing companies need to be prepared to match their new demands. You get to leverage a scalable solution by teaming up with an external provider that can seamlessly expand to cover your needs.
Here’s an example:
Sunscrapers enterprise started its cooperation by providing one developer to an NYC-based company 15Five. Four years later, the team of extended engineers who help the company achieve its goals day after day counts five full-time developers.
- Improved security: You’ll need expert advice on how to protect your company’s sensitive data from cybersecurity threats i.e., malware or hackers unless your team specializes in IT security. External providers use the most innovative and advanced security tools in protecting assets against digital threats.
- Versatility: Your IT team might find it challenging to catch up with developments or deal with changes as your business evolves. Outsourced IT providers can ensure you make the most of technology for achieving your objectives. Besides, quickly adapt their services to match the changing needs of your business.
How does IT outsourcing work?
Depending on where and how work is delivered, here are a few models to choose from when teaming up with an external provider:
- Project-based outsourcing: The Company has to provide all project-related information to the external providers responsible for the entire process of software development: quality assurance, project management, and backlog development.
- Body leasing: In this case, usually hourly on monthly rates, the company buys the time of employees from an outsourcing provider.
- Dedicated teams: This is a long-term business model where the provider agrees to deliver software development experts to the company within a separately functioning organization that provides agreed work to the client.
Some of the most outsourced services include disaster recovery, software architecture, center operations, IT support, web design, cybersecurity, data recovery, data backup, and network architecture.
Companies looking to become market leaders in the future have to embrace going digital. Nevertheless, most internal IT resources lack the technical capabilities or business acumen to determine the best solutions for their transformation journeys due to quick changes in technology.
You can take advantage of emerging technologies by outsourcing processes and tasks to experienced providers—also, access cutting-edge talent, and unique expertise that allows forming a solid strategy. The best way to fill your tech technology gaps and set your company on the path to success is by combining internal resources with outsourced digital transformation services.
Kate Tran writes in business related topics including finance. She works at UK photography business Refractique UK which distributes the lensball. Kate enjoys travelling and writing.