Offshoring and outsourcing in the IT industry

An overview of IT business outsourcing and offshoring

Why do companies outsource IT services? The information technology industry has a long tradition of agility and utilising multiple sources and, according to a study by Emporia State University, there are four major reasons for business outsourcing:

· Core competency

Decisions about IT, like business outsourcing and using offshore staff are often aligned with ‘core competency’, which means that companies should keep focused on areas of their business where they have better skills and expertise. Businesses often find that the IT function is not one of their core competencies and is better served by an outsourcing company.

· Economic reasons

Cost reduction is often the main driving force behind companies investigating the offshore IT services of an outsourcing company. One of the major considerations for considering remote staff IT services is lower labour costs. An early attraction of business outsourcing was that it alleviated hefty investments in expensive hardware, however, nowadays the cost of software

development is more of a factor in opting for an outsourcing company which provides offshore IT services.

· Technological factors

With technological advances seemingly knowing no bounds, companies face the constant challenge of keeping up with their peers by either upskilling their staff and/or investing in new technology. A problem that can arise with retraining is that by the time it has been completed the technology which once was new might well be obsolete. Companies offshoring IT services can therefore benefit from the more flexible labour markets which are offered by business outsourcing.

· Regulatory issues

Globalization and the deregulation of service industries have boosted trade worldwide and opened up access to service providers in developing countries. Such countries have been swift to adopt new technologies and have benefited from advancements in

telecommunications, better bandwidth, lower data transmission costs, and the adoption of universal computing standards. All of which are plus points for companies offshoring IT services

The impact and benefits for the IT industry of offshoring

Research by Diane Morello of Gartner, Inc. — a technological research and consulting firm based in Stamford, Connecticut — showed that there are three areas of concern that may arise as a result of using an offshore outsourcing company:

·        A loss of future talent. University and college students in developed countries may not prepare for a technical career that they perceive is moving to an emerging market, such as the Philippines, where 700,000 graduates enter the job market every year.

·        A loss of intellectual assets. Businesses must be careful to protect and maintain control of their major areas of core knowledge. Which is why working with an experienced business outsourcing company such as Intogreat Solutions Philippines is crucial.

·        A fall in performance. Overall organizational performance could be impacted as many organizations already have a fragile employee/employer relationship. This pitfall can also be avoided if companies who are considering a business outsourcing company join forces with the professional and dedicated team at Intogreat.

What are the cost benefits of offshoring IT staff?

Our offshore IT services can reduce the turnover of your IT staff, thus saving you money.

It costs a lot to find, hire, and train a new IT employee and the more frequently you do it, the more it is going to cost you. Here are some of Intogreat’s offshoring strategies to reduce your IT employee turnover:

·        A comprehensive recruitment procedure

·        Competitive employee compensation

·        Opportunities for advancement

·        Attention to motivation and engagement

·        Understanding the reasons for high staff turnover

·        A healthy work-life balance

Long-term IT offshore staff will not just save you money, but the experience gained in your business means they contribute to increased efficiency and productivity. Focus on hiring high-quality employees and build your perks and benefits around what matters most to your staff. That is our way to keep remote staff happy and engaged.

Inefficiency wastes time and money, which are two of the most important resources for a business, and it is often caused by bottlenecks, disorganised processes, and a lack of structure. At Intogreat, we will help you to meet with your staff to see where the biggest issues lie and then review your processes and workflow with them. Not only will this deliver significant savings, it will also increase staff productivity and efficiency.

FREQUENTLY ASKED QUESTIONS

What is outsourcing?

Outsourcing can take place anywhere in the world. Businesses typically outsource tasks that are not part of their core operation, such as IT. Although they might view them as essential, they lack the necessary expertise. Offshoring, on the other hand, occurs offshore or overseas, not locally. You hire offshore staff through an offshore provider such as Intogreat Solutions Philippines to undertake specific roles, usually on a full-time basis.

What are the benefits of Intogreat’s new IT outsourcing service?

Mindful of the rewards that business outsourcing can bring to many companies, Intogreat has initiated a brand-new service: outsourced IT support services. Take a look at the benefits:

·        Reduced costs

·        High quality staff

·        Enhanced productivity

·        Greater flexibility

·        Strengthened security

·        Improved focus

·        Competitive edge

You can learn more here about the benefits of improving your IT services by outsourcing with Intogreat Solutions.



As Jovey Chua, Intogreat’s head of IT infrastructure and security, explains, “We provide world-class outsourced IT support and services to our portfolio of valued clients. Our expertise and areas in which we can help your business include laptop and desktop configuration, deployment, and support; software deployment, management, and support; Microsoft 365 user and accounts management; technical support; IT staffing; application administration; network and security administration; fleet management; IT project management; IT process documentation; and IT and cyber security consultation.”

Intogreat’s founders and leaders have over 70 years’ combined experience of multi-country, offshoring and outsourcing. Intogreat has a team of experienced business improvement experts who work in partnership with your business to deliver you the right solutions to improve and grow your business.

Intogreat Solutions Philippines is committed to making your offshoring journey easy, successful, rewarding and empowering

KEEN TO HEAR MORE ABOUT OUTSOURCED IT SUPPORT IN THE PHILIPPINES?

Talk to our offshoring and outsourcing experts and schedule your consultation now.