Some small businesses allocate a major chunk of their resources to in-house development of tools and software. However, a few of them simply subscribe to tools and software developed by third-party vendors.
This process is called outsourcing IT resources, and essentially works on a ‘pay-as-you-go’ or subscription model. Though outsourcing business tech has its limitations, it can be a time-saving and cheaper alternative to developing in-house tools and software.
Starting by explaining some preconditions of outsourcing IT resources, I’ll explain why this model is better than in-house development of tools.
So, let’s begin.
Prerequisites of Outsourcing IT Solutions
Deploying IT solutions for your business is pretty straightforward. You’re good to use IT resources developed by third-party providers once you’ve subscribed to one of their plans. However, below are some prerequisites you should watch out for when outsourcing IT solutions.
An Active Internet Connection
The first precondition of outsourcing IT solutions is to ensure that you have a solid connection. Third-party vendors deploy IT resources over the cloud, and to work efficiently with the tools and access their features, you would need an internet connection.
Personally, I’ve subscribed to one of the high-speed AT&T Internet Plans, primarily because it’s a fiber connection that is capable of offering symmetrical speeds. This way, all my bandwidth-heavy tools and software work like a breeze.
Employee Training Programs
Not necessarily, but some cloud tools and software can have a steep learning curve. Here, I suggest you conduct a few sessions, trainings, or workshops to familiarize your workforce with outsourced tools and software.
High-End Devices
Keep in mind that you might need powerful devices to run some IT solutions. While it’s not necessary, some tools and software might not run, glitch, or lag on underpowered devices.
Existing Data Practices
You might need to migrate existing data sets to outsourced IT solutions. Or, you might need to convert existing datasets into a specific format to upload to the outsourced solutions.
Benefits of Outsourcing IT Solutions
In my opinion, outsourcing IT services is a more feasible option than going for in-house development. Let me explain why.
Cost-Effectiveness
A business might need a separate team and support infrastructure to develop in-house IT solutions. Not to mention that creating IT solutions from scratch can be a time-consuming task.
On the flip side, businesses don’t have to go through such hassle when they outsource IT services. All that is required is to subscribe to a plan, similar to subscribing to any OTT platform, and start using the services.
Also, businesses can easily unsubscribe from different tools and software when their needs are catered to.
Access to Cutting-Edge Technologies
Third-party software developers actively spend their time and resources to create unique business solutions. On the other hand, a business handling its in-house services would need to allocate funds, resources, and manpower to create such tools and software.
No Maintenance or Upgradation
A business outsourcing IT services is not responsible for maintaining or upgrading them from time to time. Third-party developers who develop IT resources fully own them, and as a business, you simply subscribe to use their services. So, the third-party vendors are responsible for maintaining or upgrading their tools/services.
Remote Access to IT Solutions
As I mentioned above, a third-party developer deploys IT solutions in the cloud. Essentially, you only need a device, an active internet connection, and the correct credentials to access it from anywhere and at any time.
Factors To Watch Out For When Using Outsourced IT Solutions
While outsourcing IT services has its upsides, there are some considerable factors to watch out for while using them.
Lack of Control
Businesses are simply subscribers, and not the owners of outsourced IT solutions. And while businesses have complete control over the in-house tools, they have no or very minimal control when it comes to outsourced IT solutions.
Security Measures
Most third-party providers take extreme security measures to protect their IT products from a variety of cyberattacks. However, as your business is going to use their services for crucial business operations, it’s your responsibility to ensure that whichever outsourced tool you choose is safe and protects your data.
Customer Support
Regardless of the third-party vendor you choose, ensure that it provides responsive customer support. The outsourced tools can glitch sometimes, and while you won’t have much control over them, a reliable customer support should help solve your issues.
Key Differences Between Outsourced and In-House IT Services
Below, I’ll compare some important metrics to explain the major differences between in-house and outsourced IT services.
| Metrics | Outsourcing | In-House |
| Cost | The major cost in outsourcing IT services is the subscription cost of tools. | Businesses have to allocate significant funds, resources, and time to develop in-house tools. |
| Control | Businesses have little or no control over the outsourced IT products. | A business has complete control over its tools and products. |
| Maintenance and Upgradation | Third-party vendors are responsible for maintaining and upgrading their tools. | It’s in the hands of a business to maintain and update its IT solutions. |
| Scalable and Flexible | Businesses only need to upgrade their plan to increase the scalability and flexibility of outsourced tools. | Businesses might need to invest resources to increase the flexibility and scalability of their tools. |
| Data Security | Businesses have to rely on third-party vendors for data security. | Businesses need to invest resources and funds to secure their in-house tools. |
Frequently Asked Questions
What is the major disadvantage of outsourcing IT solutions?
Lack of control over outsourced tools is likely the biggest disadvantage of outsourcing IT solutions.
Is outsourcing IT services expensive than developing in-house tech solutions?
No, outsourcing IT services is likely cheaper than in-house tech solutions because businesses don’t have to invest their resources, time, and money in developing tools and software.
