Articles | January 4, 2018
How to Increase the Flexibility of Your Company with IT Outsourcing?
In the face of constant challenges and the dynamically changing environment, flexibility and the ability to react quickly determines the success of a company. The huge competition on the market necessitates constant improvement and keeping up with new trends, all the while optimizing costs. Many companies decide to outsource selected tasks when faced with this situation, in doing so focusing on their key activities and strategic goals. IT is one of the areas most often supported by such a course of action.
This is not surprising, because IT is such a vast and dynamically developing field that maintaining it at a sufficiently high level using one’s own resources requires huge expenditure. But even solid investments, if our company can afford them, will not always guarantee that we can keep up with emerging needs. Therefore, it is understandable that the number of companies leasing programmers is growing.
Let’s take a closer look at some of the benefits of such cooperation.
Concentration on strategic areas of activity helps to increase the quality of services and products, which directly translates into company development, increasing the competitiveness and profits of the company. On the other hand, the HR department, relieved of the arduous and frustrating search for suitable programmers, can focus its activities elsewhere and deal with bringing key experts in a given industry on board, contributing to acquiring talents in the area that is most important from an operational standpoint.
Companies which specialize in IT outsourcing, thanks to cooperation with numerous clients, have the opportunity to face a wide variety of challenges every day. They not only gain experience and know-how which they can share with other clients, but are also forced to constantly improve their competences. When choosing an external partner, it is worth paying attention to his references and current projects. That way, we can be sure that the work which is to be carried out will proceed quickly and efficiently.
The difficulty in finding suitable candidates for programming positions is a well-known challenge in the business. The supply of new talents is still not keeping up with demand. The costs associated with delays in the completion of projects push companies to propose ever higher rates, which does not always bring about the desired effect. Additionally, after completing the project, it often turns out that the expert whom it was so tough to find now has nothing to do, and keeping him around just generates high fixed costs with no tangible benefits to show for it. Outsourcing solves this problem, because it allows you to use proven resources exactly when you need them, and no more than that.
Freedom from organizational restrictions
In the case of employee leasing, limits on job positions, employee turnover rate or the need to reduce fixed costs are no longer an obstacle to quickly acquiring the appropriate competences. It is a highly flexible form of completing projects and solving any issues which pop up, without the need to reorganize or increase the number of permanent staff. Programmer leasing, team leasing, or outsourcing an entire software development project is the fastest way to accomplish tasks without being held back by organizational constraints.
Reduction in risk and costs
Notices and recruitment activities, head hunters, implementation, tools, training, conferences, benefits, team-building events, managerial supervision, HR services, maintenance and supply of office space, paid holidays, sick leave, and finally, severance packages and a few months of downtime are only some of the costs connected with employment that almost all employers incur regularly. For better, if the recruit gets on with the team and becomes a permanent part of it. Or for worse, if you have to part ways for some reason and the whole costly process starts all over again from the beginning. In the case of cooperation with an external company, this risk is eliminated and the total costs are definitely lower.
In order to be able to take full advantage of what IT outsourcing offers, you should pay attention to potential threats:
Relations and atmosphere within the team
New people joining a team is always something of a shock to the existing structure. The situation may also be complicated if the new team members work remotely, without meeting employees of the client’s company on a daily basis. The matter is ostensibly facilitated by such achievements of civilization as smartphones, e-mails and computers with broadband Internet access, enabling work from any part of the world; but it’s difficult to find a substitute for direct contact and establish a meaningful relationship even with video conversations at your disposal. Fortunately, SCRUM project management methodologies come to the rescue, forcing regular contact and eliminating misunderstandings.
I dare say that mutual trust is an indispensable element of successful cooperation. In a situation where we give the other company partial control over the elements which are essential for the functioning of the organization, and allow the external entity access to company secrets, a certain caution is understandable, or even mandated, even expressed in the relevant provisions of the framework agreement and the NDA. It is also good practice to check references, not to mention having a direct conversation and making sure that our expectations are correctly understood.
However, to be clearly understood and allow yourself the comfort of trust, proper preparation is essential. Just like with any other change and undertaking, it is worth knowing the needs of your own organization and analyzing which support model will be the most advantageous from the point of view of the company’s goals and capabilities when getting ready to outsource. An overly enthusiastic approach can lead to disappointment, to say the least. The decision to outsource IT services is a strategic decision for each company, and as such should be made after taking into account a wide range of circumstances, whether business, market, financial or organizational.