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Outsourcing of IT – Benefits of Information Technology Outsourcing

Running a profitable business in today’s business environment requires outsourcing part of the business functions, especially the ones that produce optimum cost advantage. Outsourcing of IT is a common trend in today’s business world. This practice provides cost efficiency, plus access to the world-class IT experts. Information technology outsourcing also provides competitive advantage to any company that takes advantage of it. 

Outsourcing information technology to offshoring Philippines has helped in enhancing companies’ capacity for innovation among several other benefits which include adequate redeployment of both human and material resources. Today, companies in United States are massively taking advantage of outsourcing to grow their businesses. Recent study shows that approximately 60% of European companies are reaping the full benefits of outsourcing their information technology. 

The overall benefits accruing from outsourcing of IT include;

• Companies that outsource the different aspects of their information technology use the best technology to speed up task without incurring the massive costs associated with setting up an IT department in-house. Cost saving is a significant benefit of employing outsourcing strategy in any business, whether it is outsourcing of IT or other business functions.
• Also, ability to access world renowned IT experts is one of the advantages of outsourcing information technology, especially to an offshore IT company. It would have been cost-intensive to employ such high IT skills in-house, but outsourcing option makes it cost-effective and easy.

• Risk management; one of the best ways to manage business risk is to outsource the risk-prone tasks to a vendor who is better equipped to provide the mitigation. There are countries that specialize in IT outsourcing, they include Philippines, India and a lot more. You will achieve satisfaction by hiring the best IT outsourcing vendors in these countries.

Taking advantage of Advanced Technology; a company that outsources its information technology is able to take advantage of advanced technology which the offshore IT expert will provide. Again, it would have been cost-intensive to access such advanced technology ordinarily. 

Work-leisure Balance; “All works and no play...” Outsourcing in IT or any other business task is one of the best ways to optimize work-leisure balance. This is especially the case of a small-scale business where the few hands tend to overwork.

Reduced time to Market; a company will always enter the market in a shorter time frame using the best technology.  Subsequently, the company will claim a good part of the market before its competitors come on board. This is one of the juicy advantages of IT outsourcing.
Indeed, outsourcing of IT is highly beneficial. Any company that embarks on this business strategy regularly will gain strong competitive advantage.

Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting


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