Wednesday 26 June 2013

What is IT Outsourcing

Information Technology (IT) outsourcing refers to the hiring of contract workers or companies to complete tasks for a business or company. This is done as a less costly alternative to hiring a full-time staff member etc. There are various sub-categories or field of IT outsourcing work that may be done.

IT outsourcing, it is the use of external service providers to effectively deliver IT-enabled business process, application service and infrastructure solutions for business outcomes to the marketplace.

Outsourcing, which also includes utility services, software as a service and cloud-enabled outsourcing, helps clients to develop the right sourcing strategies and vision, select the right IT service providers, structure the best possible contracts and govern deals for sustainable win-win relationships with external providers which helps the organization or company.

Outsourcing can enable enterprises to reduce costs, accelerate time to marketplace and take advantage of external expertise, assets or intellectual property etc.

Types of IT Outsourcing

There are several types of IT outsourcing, we defined by where the outsourced work happens. These include:

•    Blended-shoring
•    Homeshoring/onshoring
•    Offshoring
•    Nearshoring

Examples of Outsourced IT Services:

•    Infrastructure
•    Database development/management
•    Web development/hosting
•    Application/software development
•    Telecommunications
•    Application support or management
•    Technical support/help desk

There are many benefits for both employers and workers to forming an IT outsourcing relationship for long term or short term. Today world, The main benefit for employers is that outsourcing is often much more cost-effective than hiring a full-time employee.

Outsourcing is a common activity practiced by many companies or organization in their attempt to reduce production costs system. The idea is to transfer some of the task to external service providers rather than hiring regular employees.

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