Outsourcing is when a business employs a contractor to do the job a worker could do. Firstly, outsourcing reduces the costs of different projects for different non-digital companies. Secondly, it gives companies the opportunity to hire specialists for single tasks. Certainly, this practice enables companies to take advantage of external experience, reduce cost, etc.
In this article, you will learn why IT outsourcing may be the best choice for your company’s growth. Similarly, make sure to understand its advantages and the types of outsourcing practices that will help your business run smoothly. Therefore, here you will find all relevant information about how and where to find the best outsourcing service. Let’s observe:
- What is IT Outsourcing?
- Advantages of IT outsourcing
- Types of IT outsourcing
- Why do companies need IT outsourcing services?
- Best practices for IT outsourcing
- Which services are typically outsourced?
- How to choose the best IT outsourcing service in Dubai and the UAE?
- How can ConnectHR provide you with an IT Outsourcing service in Dubai or the UAE?
1. What is IT Outsourcing?
As we mentioned earlier, IT outsourcing is a practice provided by companies to supply them with resources and services. Certainly, this is the opposite of an in-house IT staff consisting of a workforce working for the company. An IT outsourcing company is a third-party entity that can work with multiple clients to develop solutions using technology on a contract.
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However, one of the main reasons companies outsource is to access better skills, to prioritize quality, and facilitate upscaling. Likewise, businesses tend to outsource because it is cheaper to hire a third-party entity than to maintain an in-house workforce.
This practice helps businesses to reduce labor costs. When companies outsource it contracts outside organizations not linked with the business to do certain activities. However, these third-party organizations set up different structures with their workers than the outsourcing organization, this enables them to do the work for less money.
2. Advantages of IT outsourcing
- Allows you to focus on your core business: companies have limited resources; therefore, every manager has limited attention and time. IT outsourcing will help you to stay focused on more important matters and not get distracted by overwhelming IT decisions.
- Reduce risks: all companies have a certain number of risks. Competition, financial conditions, markets, and technologies may change rapidly. IT providers manage and assume this risk for you with special security, compliance issues, and industry knowledge.
- Control costs: this practice allows fixed IT costs to become variable allowing you to manage your budget efficiently. Therefore, you only pay for what you use whenever you need it.
- Reduce labor costs: the process of recruiting and training an IT workforce is expensive, and temporary workers do not always fulfill your expectations. Outsourcing allows companies to focus their human resources where they need them most.
- Experienced and qualified staff: if you are not an IT trainer, how can you assure a worker is qualified for the job? Certifications are important, but the experience is more.
- Qualification does not mean experience: some problems may be new for key IT service businesses; they can face related problems several times. However, an in-house IT worker has an isolated existence, it does not matter how much training they have.
- Increased efficiency: businesses that have in-house IT services may have higher development time, research, and implementation time, this may increase costs and are passed to customers.
- Quick implementation of new technology: a highly skilled IT organization like ConnectHR has the resources to start new projects at hand. However, starting the same project in-house may cause companies to spend weeks or months to recruit the right people, train them, and give them the support they need. For most start-ups; IT companies have years of experience saving time and money.
3. Types of IT outsourcing
There are several types of outsourcing services that may suit your business operations. Let’s take a look at some of the types:
Offshore IT outsourcing
It is the practice of contracting or hiring a third-party provider established in a different area. Likewise, offshoring creates vanguard industry solutions by mixing market products with the business’ technological superiority and capability.
One of the most important advantages of outsourcing is the availability and the costs of an internationally competitive partner. In other words, IT offshoring ensures companies obtain all the benefits despite its remote location. However, while time zone differences are challenging, all tasks are completed and all the business’ objectives are fulfilled.
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When companies are able to access new capabilities and experiences, the thought of international trade becomes a good idea. That is to say, the closest country or adjacent nations are a nearshore outsourcing model. Some businesses prefer this method since it is near, and the workers speak the same language.
However, companies entrust their business requirements to outsourcing entities and collaborate with them.
This is a form of IT outsourcing where the provider sends a team of experts and professionals to the client’s physical location. One of the drawbacks of onsite outsourcing is that sometimes time can be a restriction. However, having outsourced employees residing in the same time zone and the same country reduces costs compared to different types of outsourcing.
Certainly, in this type of digital development facility, the company is restricted to only one location; resulting in fewer companies and limited talent resources.
4. Why do companies need IT outsourcing services?
The effect of globalization is massive and has manifested in transformation and growth within businesses all around the globe. This practice has influenced IT outsourcing within companies by offering methods where they can boost their business. However, there are 2 main reasons why companies decide to contract IT outsourcing:
- Firstly, they want to save needless costs in development, designing, and implementation.
- Secondly, they want to gain access to experienced individuals and focus on their core business.
However, here are some important major reasons why companies choose to outsource in Dubai and the UAE:
- Save expenses on the infrastructure, hiring, and training resources.
- Focus on their core business functions,
- Scale-up and scale down important projects.
- Boost business capability.
- Improve their company’s transformation using the experience of other businesses.
- Shape their business using the latest technologies.
- Lack of in-house expertise.
A good reason why IT outsourcing services in Dubai is so important is because it helps all-sized companies to benefit from resources and the best-in-class talent. Likewise, it does not matter if you have a small, medium, or large business; you do not need to look for resources in a specific area to find a talented and professional IT service.
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5. Best practices for IT outsourcing
Here is a list of the best practices of IT outsourcing to make sure you take advantage of it.
Determine the right project: not all IT projects can be outsourced. Companies take advantage of outsourcing when the project has specific requirements or is not related to your core business.
However, companies hire IT cloud service providers to assist them and maintain the infrastructure. This way they get a professionally kept environment without the expenses of having to maintain their systems. The practice of IT outsourcing in Dubai and the UAE allows your company to focus on what you do best.
Make a plan: when you create realistic, and clear objectives with specified timelines, you have more control over your projects. Likewise, it is easier to estimate the cost and size of the project when you have reliable information. Most importantly, when you have a good plan, you have something to base on for your next projects.
Choose a good IT service provider you can trust: it is simple, the service provider is an extension of your business. You must choose an IT provider you feel your trade and business secrets with. In addition, select a provider that clearly understands your business. They should also connect with your business culture as well as your objectives. This way the different projects will run smoothly.
Communication is key: nothing hurts more a project than miscommunication. This key factor keeps both parties aware and engaged in the project. Likewise, one of the most important factors the project success depends on is communication. However, with technologies and tools available today, there is no reason for teams to not communicate.
Likewise, they can send an email, schedule face-to-face meetings, make a phone call, or use a web-based messaging tool.
6. Which services are typically outsourced?
- Software/Application development.
- Hosting/Web development.
- Application management or support.
- Disaster recovery (DRaaS)
- Help desk or technical support.
- Database management or development.
- Infrastructure – software, hardware, network support and installation.
- Communications and networking.
- Data center management.
- Data storage.
- Security (spam, virus, and online threat protection).
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7. How to choose the best IT outsourcing service in Dubai and the UAE?
If you want to start to outsource your IT tasks in Dubai and the UAE, you must choose carefully. However, before you contract any third-party entity, remember you will share crucial information about you and your company. Likewise, you must ensure they will provide the right service. Let’s observe:
Here is a list of key elements you must have in mind when outsourcing your IT:
- How long they have been in the market: you must request the organization to give you proof of business registration and all required documents to validate this information. Therefore, all these documents must include business permits and registration to the government bodies in charge.
- In-depth understanding of your goals: you can validate all the information regarding your potential partner insight’s related to understanding your company. That is to say, you can ask for recommendation letters from clients they have serviced in the past.
- Necessary expertise required to work with your company: when you outsource your IT department functions you may also investigate the competencies of your potential partner. After you can review all the recommendation letters handled to you by their previous clients, you can examine their team. This is a delicate matter since their workers will manage your business profiles as well as your accounts.
- Request a meeting: you can have online meetings when you are unable to meet face-to-face. This will let you investigate more competency clues that will help you during your decision-making process.
- Discuss the costs.
8. How can ConnectHR provide you with an IT Outsourcing service in Dubai or the UAE?
We are glad you learned everything in regards to Why You Need IT Outsourcing Companies in Dubai. Now you must take the step of choosing a business partner that can assist you. In case you want us to provide you with this service; you will learn how smooth your company runs with a trustworthy partner.
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Would you like to contact ConnectHR to discuss IT outsourcing services in Dubai or the UAE?
If you want to keep learning about our services or you want to learn additional information you can call us on +97143316688 and you will speak to one of our spokespersons and we will answer all of your questions.