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Tuesday, 24 May 2016

IT services outsourcing-Benefits and Risks

IT services are an indispensable part of any business, whether it is a small firm or large MNCs. These services should be handled either by the team in the organization itself or by outsourcing these services to IT services specialized firms. IT outsourcing is subset of Business processing out sourcing (BPO). There are wide varieties of them to be outsourced ranging from basic client support to software development. Even things like web development, Design, Mobile app development and payment gateway can also be outsourced depending on your requirement.
There are many companies providing these services as the new firms or large product based companies don’t have time to handle these tasks the demand for these industries has been increasing rapidly.


                                                                   

 Benefits of outsourcing:

1.       Reduced operating costs: As the organization doesn’t need to hire employees/ train them they eventually reduce all the costs related to them like insurance, taxes and retirements etc. and also you can opt for the services only you need and pay only for those.
2.       Quality staff: As the staff is already been working on same kinds of services they will definitely have good experience which will be helpful in handling any complex issues.
3.       Focus on core business: The amount of focus on core Part can be increased as you don’t need to concentrate on already outsourced services.
4.       Implementation of new technology: These firms are continuously working these services they are updated with all the new technologies used in the field which makes it more worth than expected.
5.       Quality service: There are experienced professionals in these firms and they have idea about handling of these services and provide you with the best of quality they can.
6.       Secured: Guaranteed data security with best services even if the data is shared over networks they provide the best security. They provide security at remote and hosted data centers.
7.       24x7 services: These firms provide you with service around the clock.



                                                           
Risks of outsourcing:
                              Whenever you are outsourcing some services to a third-party there is a feel of insecurity until and unless it is someone you trust or at least you have that feel until you gain confidence on them. There is certain risked involve when you give someone else the responsibility of your business. you will be having questions like” Did I hire right company to do the job?””Is the information secured with them?””Will they do the work correctly?”These are few questions which will nag till you gain confidence or trust on that company/person.
The following are few risks associated with outsourcing:
1.       Few functions are not easily outsourced: IT affects an entire organization, from basic tasks to complex automated aspects. Be sure the outside vendor are qualified to take care of your greatest needs
2.       Confidentiality of information: There is a risk to confidentiality of services being provided by them you have to make sure that they ensure confidentiality of the information.


3.       Outdated technical skills: Need to take care and ensure that these skills are up to date and if possible try to get information about their technical skills from other clients of this organization.