Author: Janet Kathalu
Friday, March 24, 2023

Information Technology 101 What You Must Know About Outsource IT

Most companies have invested in outsourcing I.T. while others haven't. If you haven't invested in it, you are messing up your business badly. Outsourcing I.T. is vital for any business, and this article will help you learn about everything you should know about outsourcing I.T.

There are several things everyone should know about outsourcing I.T., such as; what I.T. outsourcing is, how to outsource, types of I.T. services you can outsource, what KPO, ITO, and BPO are, and what outsourcing models are.  

Read on to learn everything you should know about outsourcing I.T. and the different terms and models used. Also, learn how businesses benefit from outsourcing I.T. services. 

Information Technology 101: What You Must Know About Outsource I.T.

Many business owners have integrated I.T. services into their organizations because they know their benefits. Look into this case; for instance, you've just begun your business duties, and out of the blue, your I.T. system won't work. The entire team panics and phone calls start ringing non-stop. By the time your I.T. team is done fixing the problem, you've already wasted a lot of time, clients, and other resources. Let's consider the other side: What if you had an I.T. service provider to handle the problem? How many resources would you save? A lot. And that gets us to everything you should know about outsourcing I.T. 

Information Technology 101 What You Must Know About Outsource IT

What is I.T. outsourcing? 

I.T. outsourcing is hiring an external I.T. vendor to manage I.T. functions for your business other than working with an in-house team. Outsourcing agencies charge a certain fee to provide certain services. This affordable fee helps you save on expenses such as hiring or training more employees. Work with a professional I.T. firm and take it as part of your investment. 

How can you outsource?

The common types of outsourcing are three namely;

  • Onshore outsourcing-It's hiring an I.T. firm located in the country you are operating from. It is simply working with your local I.T. firm.
  • Nearshore outsourcing-Refers to outsourcing to a vendor or organization in a neighboring country.
  • Offshore outsourcing-Happens when you give an I.T. contract to an I.T. agency in a faraway country. This happens because it is relatively cheaper and has lower tax costs.  

What types of I.T. services can be outsourced? 

Outsourcing I.T. has been there and continues to grow day in and day out as technology advances. The latest trends in technology have brought different countries together despite the distance. I.T. firms can deliver the task anywhere because of better internet connectivity and seamless communication. You may have once or twice outsourced some of your I.T. functions without your knowledge. This can be through your external team of web designers or even digital marketing experts. There are many I.T. services that you can consider outsourcing to boost your business profits. They include cloud services, web development, remote support, cybersecurity, etc. 

Information Technology 101 What You Must Know About Outsource IT

ITO, KPO, and BPO? What are they?

Many people tend to confuse these three terms a lot, and it would be a great idea to know what they mean; check the definition of each below; 

  • ITO (Information Technology Outsourcing)-involves the technical practices you can outsource, such as network security and app development. ITO refers to all the processes that are related to software applications. 
  • KPO (Knowledge Process Outsourcing)-It requires enhanced abilities and education. I.T. functions outsourced under KPO include legal services, market research, intellectual property, and data analysis. 
  • BPO (Business Process Outsourcing)-It's business related. It involves hiring a third-party agency to manage some or all of your business's operational functions, including payroll, accounting, customer support services, inventory, etc. 

What are I.T. outsourcing models?

I.T. outsourcing is developed in a unique form depending on the duration, type of work, and skills of the I.T. vendor. Below are the three common types of Outsourcing models:

  • The workforce augmentation model-Also, known as the staff augmentation model. It is the hiring of external vendors to provide specific organizational skills. Working with temporary staff helps you save because you don't cater to their additional benefit costs, such as health insurance.
  • Project-based model-Also known as full-process outsourcing. It is the most used model in I.T. outsourcing. Here, the I.T. service provider is given complete access and control over the entire I.T. project of an organization. The I.T. vendor is responsible for any errors and risks in the I.T. system.
  • The dedicated team model-This is the managed team where the I.T. service provider collaborates with the customer's internal I.T. department on the project's scope. The I.T. vendor's Project Manager runs it. 

Why Do Businesses Outsource Their I.T. Services?

Information Technology 101 What You Must Know About Outsource IT
You have no reasons to outsource any I.T. functions if you have just started your business. But as it grows, you will be forced to outsource so that you can focus on the general growth of your business. For a big company, you will need more advanced technology. You will also have more clients, which means their data has to be managed and kept secure. Your in-house team might be capable of handling your I.T. infrastructure well enough, but are you sure they will deliver the same fantastic work in the future? Technology keeps advancing, requiring numerous resources to train your staff. Here are reasons why businesses outsource their I.T. services. 

Minimal labor costs

Managing the internal staff might be a challenge to many. Training your employees needs a lot of time, money, and other resources, which could be used to undertake other projects in the company. After outsourcing your I.T. services, you save on many expenses, such as training, hiring, insurance, management, etc. 

Allows you to concentrate on core business operations

When your I.T. crashes, how much time does your in-house staff spend trying to repair it while they forsake their job duties? Managing an organization is not as easy as many may, especially when faced with unending I.T. problems that prevent the primary operations from being completed on time. If you want ample time to focus on the essential parts of your business, outsource I.T. services to a reliable I.T. vendor. 

Offers industry professionals in I.T.

With a business that constantly needs your attention, you won't have enough time to manage it and stay current with industry standards. An I.T. service provider ensures your I.T. system is up-to-date, allowing your organization to compete with other brands. So, outsource your I.T. services to gain the best and latest industry technology knowledge. 

Information Technology 101 What You Must Know About Outsource IT

Undisturbed flow of services 

New technological advancements are constantly being discovered; this makes hardware and software more complex and challenging to manage. Outsourcing I.T. services will offer undisturbed continuity of services by providing better and innovative software and hardware solutions. I.T. experts offer a plentiful supply of internet, Intranet, and extranet, making your I.T. system very efficient. So what's the difference?

Internet-This refers to the combination of computers and servers for general use. People use the internet to develop networks and also for educational purposes. 

Intranet- It's company-based and supports the internal network of an organization. Only authorized employees can access corporate information due to security purposes. 

Extranet- It's a network that gives external users access to a company's Intranet. 

In table form, let's examine the differences between the Internet, Intranet, and Extranet. 

Differences Internet Intranet Extranet
Network Public Private Private
Availability Global Specific to a company Used by suppliers to gain certain information 
Coverage Worldwide Restricted to an organization  Particularly to an organization and some of its shareholders
Number of computers connected Has the most number of connected smart devices Most miniature devices are connected The connected computers are more comparable with the Intranet
Security It depends on the owner of the device linked to the network  It's secured through a firewall It's enforced via a firewall that separates the internet and extranet


Now that you've learned about I.T. outsourcing and its benefits, I hope you'll decide wisely and hire the right person to manage your I.T. functions. As you have read above, outsourcing I.T. services is cost-effective, unlike running an in-house I.T. department. Outsource I.T. services with us to enjoy the benefits of reduced labor costs and a secure I.T. system, and get the time to make your business goals come true.  

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