Thinking of Outsourcing IT Service? Your Search Ends Here! Outsourcing IT service is the need of the hour if you are looking for a quick turnaround for your solution-oriented development needs. Let’s understand what Outsourcing IT services mean and how it’s becoming crucial for businesses in 2021 and years to come. According to Statista, in 2021, spending on IT services is expected to amount to around 1.2 trillion U.S. dollars worldwide, a growth of 9.8 percent from the previous year.
Table of Contents: •
What is IT Outsourcing?
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Types of IT Outsourcing
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Which IT services are typically outsourced?
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Pros and Cons of IT Sourcing
What is IT Outsourcing? IT outsourcing is generally defined as using external service providers for building and delivering IT-enabled business processes, business infrastructure solutions, and more. Outsourcing IT service includes software as a service and cloud-enabled Outsourcing that helps in developing the right kind of sourcing strategies. IT outsourcing also helps enterprises take advantage of the external service provider’s expertise to reduce cost and accelerate their position in the market.
Types of IT outsourcing Offshore Outsourcing Offshore Outsourcing refers to the systematic hiring of a third-party provider in a different area to exploit cost advantages. It further helps in marking the company’s potential and technological superiority to align market products with cutting-edge industry solutions. Offshore Outsourcing typically processes the needs of third-party companies that are located offshore, at a distant location or continent.
Nearshore Outsourcing The outsourcing IT service from the nearest location or adjacent nation is referred to as Nearshore Outsourcing. Nearshore Outsourcing is preferred by most businesses due to its convenience and because it is an outsourcing model that is near to them. Unlike Offshore, the third party companies are located nearby, increasing the chances of business collaboration.
Onshore or domestic Outsourcing Onsite or Domestic Outsourcing is a form of Onsite Outsourcing where the service provider sends a team of professionals and experts directly to the client’s location. Time constraint is a major factor for Onshore Outsourcing IT services as this type of service often requires an increased amount of workforce.
Cloud computing Cloud computing services are provided by third-party companies or cloud providers and are referred to as a system that allows access to storage or developmental platforms. Cloud computing outsourcing IT service is generally considered to be cheaper, more scalable, and increasingly convenient.
Managed services Managed services are referred to as Outsourcing IT services based on a contract or subscription. These services are often used to reduce the workload of in-house IT teams and ensure maximum coverage of IT duties. Managed service providers have skilled professionals with high expertise and knowledge about the system requirements.
Since the Managed services are on a contract basis, it eliminates the recruiting and training process of the company. IT also allows companies to pay only for the coverage or services they require and enhance the infrastructure performance for higher output from revenue-generating tasks. Managed service providers are also available to work off-hours with fewer workflow disruptions and flexible schedules.
Which IT Services are typically outsourced?
Software Development •
Software Product Development Software product development is an important process which deals with tailoring and developing specific features of the software to meet the needs of the market. This type of outsourcing IT service has a repetitive logical process that helps in building programmed software that stays unique for a business or personal goal. Software product development generally deals with 4 basic types of software products:
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System Software Products: Software that helps in simplifying application programming such as operating systems, database management systems.
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Programming Software Products: Set of programs that help developers in creating and maintaining other programs with the development of tools such as compilers, text editors, debuggers, and more.
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Application Software Products: Development of applications that help perform tasks such as data management software, media players, and more.
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Embedded Software Products: Development of products that are used to control machines and other devices through telecommunication channels.
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MVP Development MVP or Minimum Viable Product Development refers to building software that helps verify business assumptions and test demand for new products with basic infrastructure. This MVP outsourcing IT services can be deployed by businesses with a minimal investment strategy. MVP Development features 2 variants: No-code MVP Development and Code-based MVP Development.
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No-Code MVP Development: No-Code MVP Development helps businesses test out the demand for a new product without actual coding and using minimal investment strategies. In this form of MVP development, there can be a landing page that displays the business idea to the audience and helps analyze engaging features for further development.
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Code-Based MVP: Code-based MVP development has 2 forms, single featured MVP and Piecemeal MVP. Single feature MVP involves building one key feature that has the core functioning value. Piecemeal MVP involves a custom application that includes basic features from existing elements. However, Piecemeal MVP can be upgraded or replaced later.
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App Development (Web/Mobile) Application Development of Web and Mobile involves the process of creating software for various devices. Mobile App Development and Web App Development are largely similar and use the same traditional software development process. However, a key differentiator for Mobile App Development is that the program is created specifically for taking advantage of the unique features provided by a compact hand-held mobile device. Web App Development offers condensed website content that improves functionality and allows access to mobile-friendly content to a large number of users. Web App Development is often considered a cost-effective method to enhance Web application processes and increase consumer reach.
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eCommerce Development The structuring and development of an online business or retail store for proper functionality are known as eCommerce Development. The process involves frontend and backend development for testing and deploying at a later stage. eCommerce Development is an outsourcing IT service that improves the scope of online transactions and increases sales exponentially. Some of the essential elements to keep in mind while developing eCommerce sites are SEO statistics, the latest programming and technology, networking, and more.
eCommerce Development ensures higher levels of convenience along with a wider platform that goes beyond geographical barriers. With eCommerce Development services, businesses can enhance their revenue model and increase interactivity levels on their site for higher customer engagement. •
QA & Testing Services QA and Testing Services involve activities that improve functionality, integration, compatibility, performance, security, compliance testing, and performance. Quality Assurance and Testing Services help in identifying errors or glitches in the software development process to make the product bug-free and up-to-date. Testing Services include Mobile Application Testing, Functionality Testing, UI Testing, Security Testing, Performance, and Load testing, and much more. Quality Assurance is responsible for preventing software glitches, while Testing Services have the role of using methods and techniques that identify those glitches. These types of outsourcing IT services are often used by businesses to avoid any software glitch or error before implementing certain applications. Read More: Software Quality KPIs: A Complete Guide | ISHIR
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Managed IT Outsourcing Managed IT outsourcing involves using remote outsources that deliver IT services such as network, infrastructure, security management to its clients. Managed outsourcing IT services are implemented to ensure higher levels of scalability and flexibility with increased output levels. Managed IT outsourcing is typically subscription or contract-based and often involves the replacement of employees within the IT department of an enterprise.
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