Advantages And Perceived Risks Of It Outsourcing

Advantages And Perceived Risks Of It Outsourcing
IT Outsourcing

IT outsourcing refers to the procurement of Information Technology (IT) products and services from outside, rather than creating it in-house. It is also defined as ?the transfer of operational responsibility of IT business processes or infrastructure management to a third party.? Traditionally, the scope for IT outsourcing spanned IT hosting and security and network management. Nowadays, it is basically a strategic direction that involves many aspects including back office support and contact centers. A simple example of IT outsourcing can include company hiring website design services.


IT Outsourcing Facts

IT outsourcing has always been a subject of debate. People continue to weigh its benefits and perceived risks. Offshore IT outsourcing has always been perceived as the cause for job losses and low payments. However, it is known for benefits like lowered inflation and interest rates, enhanced businesses, economic activity and consumer spending. For the period 2003-2008, offshore IT outsourcing created approximately 22,000 jobs in the U.S.

Studies by experts reiterate the benefits and rewards of IT outsourcing. Some of these are as follows:

1.Cost-saving and obtaining specialized expertise at no extra costs
2.Increased efficiency and output for the economy as a whole
3.Creation of newer international markets
4.Recognition of global talent
5.Overall development of all participating economies
6.Increased generation of jobs
7.Increased average wages and enhanced GDP growth

So, perceived risks are only a result of technology evolution, which cannot be blamed for job losses. New technology and outsourcing enables job creation, which is totally overlooked by the critics of IT outsourcing.

Reducing Overheads through IT outsourcing

A favorable move towards IT outsourcing is expected in the coming years; with clear weightage to vendors who have an excellent track record. Choosing the right vendor is just a tip of the iceberg. Sometimes, managing a single vendor itself can be quite challenging. The critical aspect is to build and manage the relationship so as to enjoy the benefits of outsourcing.

In IT outsourcing, North American companies lead the list with 73% of North American companies outsourcing their IT functions, as compared to 66% by other countries. The idea of saving considerable time, money and energy is what propels organizations to outsource various aspects of their business and thus, reduce their overhead.

At Gentask Virtual Services, our endeavor has been to structure, manage and maximize all IT outsourcing needs so as to boost your business success. To choose the right IT outsourcing partner, visit .

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