• Aida Xie

IT Outsourcing - The Basics

As a company starts to grow, the need to increase headcount becomes evident to tackle the increasing workload. However, there are multiple other factors to consider before increasing a company's headcount just because there is an increase in workload. This is where IT outsourcing service becomes an option.

In a nutshell, IT outsourcing involves sub-contracting IT related tasks to either third party companies or even individuals. Let us compare the risk and benefits.

The Benefits:

1. Reduce Operating Cost

Costs associated with hiring an employee, such as management oversight, training, health insurance, employment taxes and more are removed.

2. Stay Focus

Outsourcing lets you focus on your core competencies while another company focuses on theirs.

3. Leverage Knowledge

Your return on investment is so much greater when you outsource information technology to a firm that specialises in the areas you need because keeping up with technology required to run your business is expensive and time consuming. Our IT professionals work with multiple clients and need to keep up on industry best practices. This kind of knowledge and experience dramatically reduces your risk of implementing any costly decision.

4. Maximise Restructuring Benefits

When you are restructuring your company to improve costs, quality, service, your non-core business functions still require your attention and outsourcing can be a very viable option.

The Risk:

1. Lack of Control and Communication

Critics often argue that a third party vendor will never be as effective as an in-house full-time employee reporting to you face to face. Other concerns include confidentiality of data and disaster recovery.

2. Not for the Long Term

Outsourcing may be good for the short term but it is for sure not a sustainable solution especially if you are relying heavily on your tech for your core business. It is better to scale a dedicated tech team that is able to continue working on your features and subsequent improvements. This is because new developers that take over the project will have to take time to review the previous developers codes before being able to add onto it.

3. Might be More Costly in the End

If you are looking to engage an outsourcing team for an extended period of time, it might be better to assemble a dedicated distributed tech team instead as you will save on third party project management fees which would be much higher in the long run.

Here we highlight the dedicated distribution model that you can consider with Worknetics for your tech needs:

Here at Worknetics, we provide a very clear and direct communication channel for you to develop your products with our teams thus reducing your risk and maximizing the benefits of offshoring.

Engage a dedicated standing tech team in Vietnam where we shortlist relevant candidates to work on your project, from there you can interview them and decide if they are a right fit. Upon confirmation, you will be able to communicate directly with them daily or weekly to manage the deliverables to your fancy. For a monthly service fee, you can focus on your project with the tech team while leaving us to handle the staff's welfare and employment variables.

The main benefit for such an offshore arrangement allows you to take advantage of lower salaries and acquire international expertise in the desired field. This is ideal for any tech project needs from mobile application or software development, content creation, webs development or hosting, infrastructure, telecommunications, technical support and even database development.

Build a sustainable tech team with Worknetics for your startup today.

#TechOffshoring #TechOutsourcing