But what does outsourcing mean exactly?
Outsourcing in business is when a company uses an external company for parts of their existing activity e.g. contracting out specific business processes or projects to another company. You basically hire another company to do your technical tasks.
In the past decade outsourcing has grown rapidly in the digital industry due to the competitive pricing. Countries such as India and China were the precursors when it comes to digital outsourcing with mainly software engineers and have given the industry a negative perception throughout the years. Today we are at a tipping point.
Nowadays, we see a shift from offshore outsourcing to nearshoring. So instead of offshoring to low quality countries such as India and China, people will start looking for better alternatives closer to home. European countries like Romania, Bulgaria and Slovakia function as the new heart of outsourcing technical business processes and can meet our quality requirements. A tendency we should definitely keep an eye out for in the future.
Why should you start outsourcing your business processes?
Think about how many days your employees are absent in one year’s time. In Belgium employees are absent due to illness around 14 days a year. That’s only one justification for their absence, there are dozens more such as annual leave, personal reasons, burn out and so on. When you outsource certain technical projects you don’t have to take that non-attendance into account anymore.
Did you know that IT is one of the most outsourced services globally? It has become more accepted to outsource services businesses simply don’t have the time or people for. Outsourcing can truly create value to your business and radically change the way companies do business.
What is in it for me?
Outsourcing specific technical tasks helps you to focus on what really matters, the growth of your business. Determine where you want to be in 5 years and how you will achieve your business goals.
The advantages of outsourcing services and projects exceed the disadvantages significantly. There is the project-based way of working convenience that tops the list. Hire an expert for a short-term project or for repeat activities, the choice is completely up to you.
Furthermore you also have access to a broad variety of know-how of which you normally wouldn’t such as web coding, virtual reality, augmented reality, motion, … . A team of specialists that cater to your every technical need. In such matter you raise the bar for your business and your projects. In addition you aren’t bound to the skills of specific people internally; you can branch out your business in any way you like.
Another aspect of why you should consider outsourcing your IT projects is pricing. Hiring one full-time employee is undeniably expensive; let alone hiring a whole team of specialists. Besides, management often raises questions to why they would need extra staff. Will there be enough workload for new team members? Will they have all the right qualifications to complete all projects? Will they give us enough return on investment?
A lot of businesses turn to remote freelancers to finish specific tasks in order to meet tight deadlines but many find communication an obstacle. You’re corresponding with one person. Companies feel as if they don’t completely control their projects and don’t get any transparency on how the project is moving along. Working with technical outsourcing companies abroad can give you that 100% transparency rate businesses are looking for.
Weigh both advantages and disadvantages thoroughly before you decide whether to use an in-house developer or an outsourcing company for those specific technical tasks. Outsourcing offers you competitive hourly rates in comparison to in-house employees. Calculate your hourly rates here. Ultimately, the cost for outsourcing will never be higher than for an in-house employee but it will shrink risk significantly and decrease operational and recruitment costs.
The key to success is to get a 100% transparency guarantee when it comes to your projects. Companies such as Skkills give you that extra perk of having a local personal contact as if you had hired an in-house employee.
Are you ready to outsource your projects? Let’s talk!