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Glossary

What is IT Outsourcing?

IT outsourcing refers to the practice of contracting with an external service provider to handle some or all of a company's IT operations. And, these operations include infrastructure management, strategy development, and service desk management.


IT outsourcing businesses can take full responsibility for all IT maintenance and support, referred to as a fully managed service, or they can supplement an internal IT team, referred to as co-sourced IT support and often utilized by larger enterprises.


Therefore, an IT company hires one services provider who provides all the services. Or also, they can hire multiple service providers who provide different services.

Types of IT Outsourcing

Well, here we summarized a list of a few types of IT outsourcing which are mentioned below. So. let’s have a look at them!

Offshore Outsourcing:

In this process, we outsource IT-related jobs to a company in a foreign country, such as India, China, or the Philippines, which offers political stability, lower costs and tax savings.

Nearshore Outsourcing:

In this process, outsourcing IT-related tasks to a company in a nearby country. Additionally, this should, in principle, make travel and communication between the two groups easier.

Onshore or Domestic Outsourcing:

This refers to contracting with a local IT service provider to execute IT-related work remotely or on-site.

Cloud-Based Computing:

Contracting with a third party to supply internet-based IT services such as Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS).

Management of Services:

This comprises outsourcing network functions including IP telephony, messaging and call centers, virtual private networks (VPNs), firewalls, and network monitoring and reporting to a third party.

What are the Key Gains of IT Outsourcing?

Companies have chosen to outsource their IT operations for various reasons. Here, we list a few of the key gains of IT outsourcing. So, let’s examine some of them!

Cost-Effectiveness:

Outsourcing IT operations turn fixed expenditures into variable costs, allowing companies to pay only for the tools and time they use. Whereas, the costs of hiring a full-time IT worker include training, insurance, employment taxes, and retirement plans.

Implementation:

An IT outsourcing firm offers the resources and expertise to go directly into new initiatives. If a firm does not have a large IT team or software engineers to manage technology, outsourcing helps them to start implementing programs sooner rather than waiting months or even years to hire skilled people and set up internal platforms.

Global Option:

Resources and skills that aren't easily available in your area can be found in plenty elsewhere. Therefore, outsourcing allows companies to hire IT personnel from all over the world, as well as provides extra possibilities for companies wishing to hire individuals with highly specialized or specific skill sets.

Security:

Businesses may choose to outsource their cybersecurity to a third-party provider. Besides, outsourcing allows teams without security personnel to quickly get threat intelligence, detection, and response up and running.


Additionally, outsourcing security has risks, especially if your partner is in a distant time zone and cannot respond to warnings immediately. Therefore, IT outsourcing raises security concerns; delegating partial or entire management of business resources to a third party usually compromises security.

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