Earlier, companies used to outsource only the non critical business tasks. These were usually the hiring departments, customer support, and contact marketing. But now, a number of companies have started outsourcing major departments like information technology, communication services, and project researches as well. Many IT (Information Technology) companies are hiring offshore providers for their software projects.
There are various reasons why many companies are off shoring their IT business. Following facts will acknowledge you about the reasons of growing trend of IT business outsourcing:
Cost Savings- An in-house department for IT development is common but it is also a very costly matter. With its high cost, the estimated profit levels may go down. Thus increasing cost is the main reason that software companies these days are outsourcing their IT development projects. It provides the company with a proper estimate about the total cost to be invested per project that saves the company from overhead expenses. In addition, costs are tied to deliverables. Jobs are delivered- outsourcing company gets paid, otherwise they don’t!
No Retraining– Outsourcing helps a company to reduce labor costs as they don’t need to hire and train the employees. It also eliminates the chaos of abrupt termination of the employee from the project.
No Bonus- By outsourcing, the company does not need to keep a track of payroll, bonus, and paid vacation of the employees.
Take on Multiple Projects- Resources are a cost and thus limited. A limitation also means projects are often weighed. However, what happens if all the projects are needed? Can anyone say for certainty that one decision is better then the other? By taking the help of outsourcing companies, you can choose multiple experienced developers for your different IT projects that will result in commencement of multiple projects simultaneously.
Stay Up To Date on Technology- Technology keeps updating with time. To start a new IT project you might need to implement new technologies to your business which will result in extended expenses and lack of skilled professionals. However, by outsourcing your IT costs, you can quickly handover your software development projects to the companies who already have the required technology. The result is a savings of time, costs and a lot of frustration.
Stay Focused- Outsourcing also helps you to stay focused on your core business. Various projects are short termed and you cannot hire new teams of professionals for each project. So, for your short termed projects, outsourcing makes the best choice to go with.
IT Knowledge and Experience- Most of the small companies are often unable to convert their ideas into business because of lack of access to the technologies. By outsourcing their IT related needs, these small companies can get their projects ready without spending fortunes to get the right technology.
BP Analytics has carved a niche in this competitive market. Our company provides services to; develop custom business applications, financial technologies, and data warehouse designing.