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More companies are choosing to use IT outsourcing, a new study has shown.

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IT consulting has become increasingly popular among smaller businesses. But you need to do your homework before deciding whether or not your business should outsource its tech functions.

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As any outsourcing contract enters the “end-of-term” phase, both the buyer and supplier need to assess what has been achieved thus far and what additional value remains uncaptured.

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BPO has traditionally been used to create a leaner organisation without compromising on service quality and to enable organisations to benefit from lower cost labour in developing countries.

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Small businesses today have one good reason to think “big” and act like one. The reason: Offshore outsourcing. This exporting of IT-related work from developed countries like the United States to other areas of the world continues to level the playing field by providing this new breed of businessmen with access to the same economies of scale, efficiency and expertise that big companies enjoy.

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The term “offshoring” conjures a vision of work flowing from large corporations to technology vendors halfway across the globe.

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Outsourcing in both the private and public sectors faces a number of significant challenges, including understanding and managing international business environments, ensuring alignment between business processes and the outsourcing contract, and handling diverse expectations from the client and outsourcer’s organizations.

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Offshore outsourcing providers are coming up with new pricing models in response to more demanding customers. Mid-tier provider MindTree is publicizing its hybrid pricing model, which it says combines the best of both time-and-materials and fixed-price models.

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Outsourcing providers often rely on a limited number of geographic locations, exposing themselves to unnecessary risk. They can mitigate these risks.

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The last days of an outsourcing contract are the perfect time for customers to bargain with their IT service providers for better service and prices.

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