IT Outsourcing

Nowadays most of the companies use outsourcing to some degree, much of it involving the technology sector. IT outsourcing involves sub-contracting or "farming out" certain information technology functions to independent, third-party companies or individuals, instead of keeping those functions in-house. Another term often used to describe overseas hired help is "virtual". As in, a "virtual worker" or "virtual staff".

Let’s dig deeper into it and figure out whether it’s something you or your business should consider.

Types of IT Outsourcing

There are several types of IT outsourcing, defined by where the outsourced work happens. These include:

• Moving business/services overseas, typically to take advantage of lower costs and/or a more favorable economic climate
• Nearshoring: transferring business/services to another country close by, oftentimes sharing a border with your own country.
• Onshoring: allowing employees to work from home rather than an office, factory, or related physical workplace.

Advantages of Outsourcing

There must be a good explanation for why, so many places are doing it, right?
Here are some of the reasons that companies/entrepreneurs are choosing to outsource parts of their business.

Expertise: sometimes an overseas vendor/business has special equipment and/or technical expertise, making them better at the given task than employees within the outsourcing organization.
Reduced costs: a big draw to outsourcing work overseas is reduced costs for labor, operations, and even equipment.
Staffing flexibility: Outsourcing will allow operations that have seasonal or cyclical demands to bring in additional resources when you need them and release them when you're done.

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