Posts Tagged Network Outsourcing

IT Outsourcing – Benefits, Risks and Rewards

February 12, 2014

Outsourcing certain aspects of your business is a choice that almost all business owners are faced with the most obvious benefit being the cost-cutting that this option offers. With outsourcing being available for nearly every IT function, right from computer networking to online marketing, and everything in between, it is possible to significantly cut down on your workforce by choosing to outsource. Here is a look at the benefits, risks, and rewards offered by IT outsourcing:

The Benefits:

  • Outsourcing helps to eliminate the costs associated with hiring, managing, and training an employee force, as well as providing employees with benefits like health insurance, employment taxes, retirement plans, etc.
  • Another benefit offered by outsourcing is that it enables business owners to focus on core business aspects.
  • By choosing to outsource, you can opt for companies that specialize in the area you need, giving you the benefit of collective skills from experienced IT professionals.
  • Outsourcing also helps to save time, by allowing employees to focus on what they were hired for, instead of having to manage tasks that an outsourced employee can perform much more efficiently.

The Risks:

  • Outsourcing is accompanied with data confidentiality and disaster recovery concerns.
  • Laying off employees due to an outsourced workforce might result in reduced employee morale at the workplace, as employees begin to worry about their job being at risk as well.
  • Many outsourced companies might require you to sign a multi-year contract or download their software, which could result in reduced flexibility.

The Rewards:

  • With software and hardware in the IT industry becoming obsolete by the minute, outsourcing is a good way to allow business functions to be handled by a company that can offer you access to the latest technology.
  • Outsourced companies (for example company providing outsourced computer networking) have core competencies to focus on, which makes it possible for them to hire a workforce that is well-qualified, trained and experienced in performing a particular function.
  • The financial rewards offered by IT outsourcing range from lower overhead expenses and bulk purchasing to leasing options for software and hardware, resulting in a significant amount of cost-cutting for businesses.

With the benefits, risks and rewards associated with outsourcing being evident, it is important to ensure that you have the framework essential to effectively manage an outsourced workforce, before opting for IT outsourcing.

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