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Software Outsourcing
Updated: Aug 27, 2024

3 Amazing Benefits of IT Outsourcing Vs. Impact of Protectionist Policies

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Bhadresh is an AWS certified technocrat and holds the position of a Project Domineer.
3 Amazing Benefits Of IT Outsourcing Vs. Impact Of Protectionist Policies

Imagine this discussion on a normal working day-

Mr. Managing Director (D) to Mr. CTO (C): Mr. C, it seems our competitor X has managed to lower their costs once again. And yet they have managed to invest a lot in the marketing activities in order to make their brand presence stronger. Do you have any idea how? What have might just changed?

Mr. C to Mr. D: Yes sir- It seems ‘X’ has managed to integrate automation in their manufacturing process to boost their productivity and they have also streamlined their sales processes with the use of smart devices. All this has helped them to eliminate unnecessary labour to save a lot of cost and they also managed to boost their sales with the use of technology.

Mr. D to Mr. C: That is ingenious! Can we do the same for our organization? If yes, let’s have a meeting with the heads of all departments and derive all the areas where we can use technology to boost our productivity! This is just the opportunity that we needed to grow in the market. Also, make sure you get the best talent for the task who has the technical as well as required entrepreneurial skills to understand our business inside out and suggest us the best possible technology solution.

Sooner or later, every entrepreneur, industrialist and business-owner will have a similar conversation with their respective teams or technical heads. The reason is that technology has been the beacon holder of innovation for decades now. Not only has its reach extended from laptops, desktops and smartphones to cars, televisions, home assistants and what not! By connecting them all in one big network via internet, technology has been driving fourth industrial revolution aka Industry 4.0 as well!

One popular way organizations stay competitive in the business world is to outsource. Outsourcing is an exceptional way to find top talent at affordable rates. If you’re looking into this strategy to keep your business afloat, take the time in doing research. Additionally, you can expect the global IT outsourcing market size to reach an estimated USD 770.98 billion by 2032, growing at a CAGR of 9.3%.

While businesses of all sizes are trying to leverage maximum potential and productivity out of Big Data, Internet of Things (IoT), Artificial Intelligence (AI) and Robotic Process Automation (RPA)- recently there have been a surge in several protectionist policies across the globe. As most of these services are outsourced to offshore technology partners, Brexit and domestic growth focussed foreign policies in USA are becoming a challenge for providers and vendors both. Despite this, USA and Europe are still raging as major technology enablers and outsourcing buyer regions. How? Read on.

Critical Challenges Faced by Companies Looking for Apt IT Outsourcing Company

While the world is reeling under the huge paradigm shift created due to policies, most companies are in dilemma whether to outsource or not.

The truth is that outsourcing in various sectors might have declined but USA and Europe are still the biggest buyers of software development outsourcing services with 42% and 35% respectively. But, the focus of outsourcing has changed dramatically. Cost cutting is still one of the biggest factors that leads to outsourcing to offshore partners; however recently there are have been new entrants on the top priority list.

Top 3 Benefits of IT Outsourcing Vs. Protectionism

1. Rise of Value Based Partnerships

Gone were the days when people invested in freelancers just to get the job done at lower costs. Previously, it worked because technology projects were not meant to increase the productivity of the business but to provide technical support for convenience. While today, digital transformation is driving most businesses. Companies are digitizing even their core operations and processes to unlock the true potential and gain better competitive edge.

Hence, enterprises and start-ups are focusing on what their IT outsourcing company or provider is bringing on the table in terms of value and expertise rather than lower project costs.

People nowadays are seeking help of industry experts who can not only execute their technology requirements seamlessly, but can also contribute to their Centre of Excellence (CoE) and help them build a technical infrastructure based on their business processes and industry standards. Companies are relying on value driven partnerships that can provide business analysts and technical experts and deliver the whole project right from ideation, development to support and maintenance.

In short, with more value-driven partnerships, it is easy to-

  • Get access of better expertise
  • Get experienced talent pool for your project at affordable rates
  • Don’t invest in establishing the required infrastructure for technical advancements
  • Get an experienced partner who can help you manage with the inconveniences and set backs
  • Leverage better data security

2. Innovation to Boost Your Growth

In the current scenario of competitive market, to gain an edge you must evolve with the customer demands. It is a constant need to differentiate and develop your products to entice your target audience.

The problem faced by companies is that- they are aware of this fact but lack of relevant skills, expertise and experience cannot help open the innovation gateway. This is where trusted IT outsourcing company come to the rescue!

Instead of shifting their focus from core business operations to explore unknown waters, enterprises usually partner with technology outsourcing vendors that have the right mix of pool and domain expertise.

Opt for an IT outsourcing company whose growth model is based on innovation and also have relevant domain expertise – to help you open the gateway to innovation and explore growth hacks that can give you an edge in the market.

3. Blue Print for Business Growth

Apart from value and innovation, the third most important factor that helps any IT outsourcing company in flourishing- is their ability to provide faster time to market. Time indeed is money in this fast paced world and enterprises understand it very well.

So, instead of establishing the whole department that can bring you technology advancement required to grow in the market, it is rather wise to outsource it to the vendors who already have the setup and infrastructure to deliver the project as and when required.

Whether yours is an enterprise or start-up, whether it is a big enterprise or mid-sized, your IT outsourcing company can help you execute your project with right amount of resources and that too in an affordable budget.Apart from that, below are few of the operational benefits of outsourcing:

  • You do not have to retain the resources and provide them work even after the project is completed.
  • There are no extra efforts or costs required to spend on the setup of infrastructure i.e. devices, software and desks to initiate the project. Your IT outsourcing company will provide the necessary resources and infrastructure for the project.
  • You can hire the vendor even for a short-term project and get access to the best talent pool for it.

Now you know why people who need quality and excellence, they will have to rely on outsourcing. And for those who belong to the industry where the risk of Data Breach is devastating, they can create a mixed environment where some of the operations that are complex in nature that includes sensitive data are kept in-house for better Data Protection and other operations are outsourced to a vendor.

Although protectionism trend is real and there is an evident paradigm shift in the market, IT outsourcing companies continue to flourish whether they are off shore or on US soil! Because as long as they can provide value driven partnerships, can initiate the innovation drive and that too at affordable costs, there is no threat to stability driven IT outsourcing companies.

And, here is the easy way out. Leverage our large pools of diverse competencies and skills for your projects with our war-tested experience in software development outsourcing. Achieving greater value gets easier for you, get in touch with us.

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Bhadresh Panchal

Bhadresh Panchal

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About the Author

Bhadresh is a senior technocrat and works as a Project Domineer for Radixweb. He is an AWS certified solution engineer with 12 years of experience. He specializes in technologies like ReactJs, NodeJs, AngularJs and has driven successful projects with clean code architecture, PgSql database system and REST architecture for the web.