Treasures of IT Outsourcing

Treasures of IT Outsourcing

Outsourcing has become synonymous with the IT industry. It is responsible for increasing the interdependence among economies, nations and international trade. On the other hand, it has its own share of controversies with regards to loss of quality, ruining the job opportunities of citizens in developing countries and unduly benefiting the emerging economies. Now, outsourcing has become an important element in IT business. There is an increase in the number of IT outsourcing companies in the past ten years. IT outsourcing services are in demand, as it frees the client’s personnel to focus on activities crucial to businesses.

IT firms prefer to avail the services of a Global IT outsourcing company, due to the latter’s universal presence. There is a huge potential for IT outsourcing services. The industry has been valued at several millions of dollars. The deal-sizes are increasing on a yearly basis. However, there are differences in engagement models. There is a shift from the conventional, mega deals to small deals requiring specialist expertise.

As explained in the earlier paragraphs there are political constraints and regulatory moves that oppose outsourcing in certain parts of the globe. Therefore, the expectations from the outsourcing vendors have largely increased over the past few years. Vendors have to cater to exceptionally high quality, engage in a manner preferred by the client and also meet regulatory compliances. Vendors also face problems in terms of getting the right resources and maximizing returns from lesser investments.

IT firms adopt a rigorous process in selecting their IT outsourcing services provider. Cost-reduction is not the only qualifying factor, anymore. Apart from cost-reduction there is a strong emphasis on quality. There is also a stringent evaluation on other factors like the ability to quickly respond and trouble-shoot. Another factor for assessment is the firm’s track-record, testimonials and their data-security measures. This is crucial as many IT firms work with clients in the Banking, Financial Services and Insurance sector (BFSI) and deal with confidential information. Therefore, IT firms are also particular on the vendor’s capability in safeguarding this data, during the course of work.

IT firms also evaluate various engagement models, before choosing a model. Co-sourcing is an advancement over the traditional outsourcing model. In this model, the vendor’s resources work with the client’s resources. Therefore, there is no loss of business control. The client is assured of cost-effective resources. The client’s key personnel can concentrate on strategic initiatives of the company.

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