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Why and When Companies Outsource Certain Responsibilities

The term outsourcing refers to the process of obtaining services externally. Now, many are wondering as to why and when companies turn to outsourcing instead of getting that service from the inside. Obviously, a company would outsource if it does not have anybody, or any department with the skills or resources needed for a particular purpose. In another scenario, compared to hiring from within, it is by far cheaper for the company to outsource or assign tasks and responsibilities to someone who is from outside of the company, more likely offshore. With outsourcing, the company realizes big savings on human resources.

In present times, outsourcing is becoming increasingly popular among businesses. Many of the company’s departments can be outsourced but that decision is still dependent on the company size and the specific needs of the operation. Meanwhile, accounting or a similar department can “outsource” someone to do the bookkeeping. Another department is the tech department where IT managed services can be of use. Not all organizations have internal IT department or groups primarily because of cost. Yet it cannot be denied that companies do need people to take care of IT. Therefore, IT managed service proves to be beneficial.

It is worth noting that outsourced workforce should be given the same care that a company would give to internal employees. The goal is to not limited to finding the best freelancer but it also includes keeping them around. Before outsourcing a task, one should also keep in mind that cheap labor does not guarantee quality results. Similarly, costly service does not mean quality work automatically. Given this, the company should have already done extensive research on the cost by the time the company hires IT managed services externally. On this note, learning how much the other companies are paying for this task can give valuable information. Before saying yes to anybody, discuss first certain expectation and see if both of you can agree with certain important things. It is necessary for both parties to fully understand what needs to be done and how it should be done. On the other hand, when you already have IT managed services working for you and you are not satisfied with their work, let them go and find another one. Always keep in mind that the reason you are outsourcing is getting the most out of what you paid for so sacrificing quality is a big no-no.

You may either be outsourcing IT services for a long time already, or you may be a first timer in this practice but it does not matter because either way you should be doing thorough research. Don’t quickly engage the service of the one that your first found. Gather as many information as you can. Compare two or more providers before choosing one. Getting the full advantage of a hired IT Managed Services is an indicator that the company is working with the right contractor.