IT Outsourcing. When you have no time to do something yourself, it is wise to hire a developer team. This conception is pretty simple, isn’t it? History is full of such examples. Did you ever hear about the Bracero program? During World War, 2 million Mexicans went to the US in search of a job and supported the US economy in times when millions of Americans went to war. I think it is a good example of outsourcing even before the world realizes what the IT sphere is.
Yet, let's get back to programmers and web designers. Can you find help for your business from others? Roughly speaking, that is why you need an outsource company (when it comes to IT business, of course).
Of course, you can hire a freelancer for some small separate goal. But when it comes to a serious job that requires a lot of skills and responsibilities, you need an outsource company. With IT outsourcing, you do not need to create a team of professionals and make them friends. For example, Fulcrum is a friendly team of specialists able to help clients achieve their goals.
IT Outsourcing Types And Models
So, let’s see what types and models of IT Outsourcing we can find.
First of all, outsourcing divides into three types depending on where the IT outsourcing company comes from:
And you can guess what it means. Onshore outsourcing companies often come from your country. In more rear definition, the onshore outsourcing company comes from your economic zone.
Nearshore IT outsource service companies work not in your country. Yet it is “close” to your country and probably provides benefits like a common time zone, the same language, currency, and so on.
The offshore outsourcing company is far from you. Today, companies use to work in any format, and surprisingly offshore companies provide you with the best budget options. It is often a big outsourcing company that helps you save more money.
Find in the guide:
- Offshore development rates by country
- Time zone difference
- Development rates by role
IT Outsourcing Models
There are many kinds of research about Outsourcing models, but to summarize them, we can mention only three models:
- Delegation of an already planned project
- Hiring an IT company to create a product from a scratch
Delegation of an already planned project
If you have a project, but your team can’t catch up with the deadline, and you need someone else to handle it, then this model is for you. IT company provides you with outsource services, and you give them instructions on how to handle this project.
Such a model of outsourcing cooperation concerns specifically the implementation part of a project. Besides, this model lowers requirements to outsource team and their skills.
Hiring an IT company to create a product from a scratch
It is the most valuable part of IT outsourcing services. This outsourcing model allows you to hire a team for rare work that you can’t or don’t want to do.
Of course, this outsourcing model starts with a search for a good IT outsource company. After all, it takes a lot of skill and experience from developers to create the product you need. The development of a big project is never an easy task. And Outsource companies have to be ready to react and work diligently. That is why this outsource model requires a bigger budget from you than the previous one.
On the other hand, you can entrust more responsibility to the IT outsourcing company, which can handle such an outsource model. In case you need IT outsourcing services only for a one-time project, there will be no need to create your team for such tasks.
To temporarily enlarge your team for some project or catch up with a deadline, it is time for IT outstaffing. It is simple as it can be: you hire new people from another company for a short time.
But, this model works only in case you already have an IT team. Outstaffing companies look more like HR agencies, yet they provide you with temporary personnel to help you in a critical situation or with projects. And outstaffed personal will be able to help you with implementation, yet that is it.
Outstaffing is a great option in case you need a skilled specialist right here and now for some specific project.
IT Outsourcing Pricing Models
|Fixed price||No overpayment
|Time and material model||Flexible budget
No preparation cost
Low budget control
Time for participation
|Dedicated team||Catch-all control
Outsourcing IT Pros and Cons
Before you order outsource company services, let’s find out what they can give you. Check some pros and cons right now!
IT outsourcing is a big business niche. And the share size of the outsourcing market ( and that is 92.5 billion dollars) shows that the IT outsourcing industry is popular and works well.
We’ll start with pros because when someone tells “I have bad and good news for you”, I always ask to start with a good one.
IT Outsourcing Pros
- You can save the budget due to different tax systems and payment levels in other countries. And steel gets a job done well.
- You can free developers from your company for other projects. Or help them catch up with a deadline.
- Outsourcing allows you to find any type of specialist. And that may boost your own developers' team.
- When you find a good IT outsource company, you can forget about HR activities.
- Using IT outsource services, you can be flexible in the size of your team.
IT Outsourcing Cons
- It may be challenging to find a good outsourcing company.
- When it comes to offshore outsource companies, time zones may become an additional issue.
- In the case of outstaffing, it may take some time to explain everything to a new employee.
Where to Hire Outsourced Help
There are many places where you can hire an IT outsourcing company. For example, you can visit Upwork. For example, Fulcrum has an account there too.
We can list the main platforms where you can find IT outsource services:
- Amazon's Mechanical Turk
However, it is worth mentioning that it is not an issue to find an outsource company nowadays. It is hard to make sure that this particular company has the skills and experience to handle your project. So, make sure to check as much info as you can find. And do not forget about the interview.
Secrets of quality cooperation with IT outsoursing companies:
- Clear vision saves much ( start with clear understanding of what you will outsource and why )
- Understanding your business is no less important than code quality
- Transparent communication ( this is the most important aspect of IT outsourcing)
- QA and Maintenance (the more attention the IT company puts to it, the more reliable it is)
- Paying for results not for programming hours
- Strong focus on cybersecurity (fun facts: a hacking attack occurs every 39 seconds, 70% of companies aren’t prepared for cyberattacks)
Which IT Services are typically outsourced?
The modern world is full of IT technologies. Wherever you go you need at least a smartphone and mobile internet. That is why a business has to react to succeed. And ahoy, when I say business, I mean any type of business. It is the first and main reason why outsourcing companies became so popular.
The creation of high-quality products takes time and skills from developers. Nowadays, everyone needs a website. And many need an app to interact with clients on different levels, especially if there is a lot of interaction going on.
I’d say it is not wise to hire a team of developers in this case. They can create a website, develop a UI/UX design. Moreover, an outsource company can create an app for you with back-end and front-end parts. In case you care about the security of your product outsourcing companies will add more features, double-check the code, etc. They will test it and make sure your product is ready.
Typically outsourced IT services:
- Application/software development
- Web development/hosting
- Application support or management
- Technical support or help desk
- Database development or management
- Infrastructure – hardware, software and network installation and support
- Networking and communications
- Disaster recovery
- Data centre management
- Data storage
- Security – virus, spam and other online threat protection
It is hard to name all services that IT outsourcing companies provide, but trust me, there are a lot of them. You can outsource almost everything!
Look at us. Outsourcing companies like Fulcrum can develop different types of products. We do apps on Android and IOS, work with e-commerce projects, play with web design, and more. You can check it all yourself, just follow the link to our projects page. And no matter if it is a front-end or back-end: we can do it.
Fulcrum.Rocks IT outsourcing company
Or, the most obvious option for you will be hiring the Fulcrum.Rocks IT outsource company. And that will be a perfect decision. After all, we have enough experience to cover multiple projects. If you need assistance with Android, IOS, React, Java so on, contact us, and we’ll help you.
Or start with our projects page to find out more about our previous products. As mentioned before, you must see the portfolio to choose an IT outsourcing company.
But do not stop here! We knew you’ll need more info about our services. That is why we built-in calculator to estimate the price for your project. And there are many more buttons and options on our website you can click.
So in case you’ve decided to digitize your business, just drop as a line.
FAQ: IT Outsourcing
📍 Which of the following is a risk of outsourcing and its functions?
When you hire someone else to do your work something can always go wrong. This is why you need a good outsourcing company. In the case of offshore, IT outsource company timezone differences may be a problem.
📍 What is outsourcing?
Outsourcing is a deligation of part of your work to another company. You can hire an outsourcing company to do part of a project or to create a new product from a scratch. There is also outstaffing, which allows you to hire staff members from another company.
📍 What is the top reasons for development of global outsourcing and its services?
It is always easier to delegate your work to another company. Especially if they are specialists and can improve your project and make it in-time. Due to the Internet, you can find outsource company any time in any part of the world. And usually, it is cheaper than creating your own developers' team. Especially if you need a one-time project.