Written by Abdelrahman Elghandour
Abdelrahman Elghandour is currently a Senior Projects Lead in KUWAITNET. With a degree in Information Technology & Computing , he has contributed to many projects since June 2016. He loves Traveling. He believes the more you travel and experience new places, the more open your mind will be to new things.
There is a lot of debate raging these days about the pros and cons of in-house versus outsourcing IT solutions. To start, let us have a look at what exactly IT Solutions means. IT Solutions is the software products that one buys from a vendor, enabling the person to carry out his own specific set of activities. In simple terms, it is the complete package that comprises all the tools and software programs that are purchased to carry out various activities related to business.
Let’s discuss them one by one:
OUTSOURCED IT SOLUTIONS
If you've an online business, then you must know the pros of outsources IT solutions. This kind of service enables business owners to get various IT services done from different parts of the world. For instance, you can outsource data processing to India, application development to the Philippines, or web development to China. All this means that your business will be able to get IT solutions without investing in them. As far as investment is concerned, outsourcing IT solutions is absolutely cheap and can easily fit into your budget.
Pros
In an IT world where each minute detail of a company's functioning needs to be accounted for, and every activity tracked and analyzed, outsourcing is not a means to cut down on costs alone - it is also a must to ensure that the processes are efficient. The use of outsourcing in the context of information technology can be used to answer the long-standing issue of over-reliance on expensive and unproductive software solutions.
To begin with, IT outsourcing:
Helps in reducing costs, increasing efficiency, and maintaining competitive advantage.
Facilitates you to take full advantage of the latest developments in technology.
Enables your business to remain ahead of the curve by investing in cutting-edge technology that your competitors are not using.
Cuts down the cost of maintaining internal software significantly and reduces the operational cost by another huge chunk.
Highlighting some of the major pros of outsourced IT solutions:
Cost-Effectiveness
IT Solutions Outsourcing has proven to be one of the most cost-effective solutions available today. In fact, it has turned almost a necessity to cut down on the overall cost of running a business. For an organization that takes up large projects like Software Development or a website design and development project, it becomes a great help in saving money.
Skilled Professionals
The best thing about outsourcing is that you get highly skilled professionals who can cater to your specific needs and tailor-fit your requirements. This facilitates you to focus more on your core business processes rather than wasting time training and hiring new employees.
Timely results
One of the major pros of IT Solutions Outsourcing is getting your work done in the shortest possible time. With these services, you need not wait for months or years to see results. As a matter of fact, these projects deliver results in just days. This not only does increase efficiency but also improves customer satisfaction levels. You need not worry about delays and downtime. Instead, you need only concentrate on the quality of your work.
Lesser Resources, Better Output
These services are designed to help businesses cut costs while simultaneously improving efficiency and reducing waste. A business can save a large amount of money by not buying hardware, software, peripherals, and training services for each employee on an as-needed basis.
Faster Delivery Rate
Large projects usually consume too much time. By outsourcing the IT solutions, you can get your work done at a much faster rate & get your business functions back on track again. On the other hand, small businesses may find it beneficial to have the task handled by a third party.
Increased Productivity
Another perk of outsourcing is that it can bring your employees from different locations across the world. In most cases, the people hired for such services are highly skilled and paid accordingly. In addition, outsourced professionals can help to increase productivity. In effect, the pros of outsourced IT solutions result in greater efficiency at lower costs.
Direct Delivery to Desired Locations
There are other benefits of outsourced IT solutions apart from its minimal investment requirement and its direct delivery to the desired locations. When it comes to the remote access option provided by most outsourced solutions, the technology is delivered via the internet, which ensures that the client company can access the software and hardware from any location at any time. This makes remote management of the programs and hardware very easy. Remote access software also ensures that the client company can access the latest training content available, which greatly reduces training costs.
Cons
The cons of outsourcing are less visible and often work against the organization. Let’s discuss them one by one:
Lack of Control Over the Final Outcome
One of the cons of outsourcing is the lack of control over the outcome. If the company fails to deliver a specific service, then you are responsible for it yourself. This is one of the major disadvantages of outsourcing. It reduces your ability to make decisions in the best interest of your business and keep with the changing technology trends.
Compromised Quality Assurance
A disadvantage of outsourcing is sometimes the inability to provide quality assurance when you outsource. Suppose you are not very skillful in this domain. In that case, it becomes extremely difficult to find out whether the outsourcing services provider will deliver the same quality of work at the same price as you would get it for yourself.
Absence of an Effective Processes
The next major drawback of outsourcing is the absence of effective and efficient process development and tracking mechanism. You can not be sure of the exact working pattern, which reduces the company's overall efficiency.
IN-HOUSE IT SOLUTIONS
Many companies nowadays look towards in-house IT solutions to save on costs and increase the efficiency of the business. But how much can one count the advantages of in-house solutions when compared with external solutions like outsourcing? Let’s check it out.
Pros
There are so many pros to In-house IT Solutions that the list could go on for pages.
By in-house development, you can also ensure that you receive IT support round the clock.
This in-house development option also enables you to ensure that you get the maximum return for your invested money.
Lastly, an in-house developed solution is easy to procure and integrate with your corporate data and applications.
Let’s enlist them one by one:
No Need to Deal with Multiple Employees
Perhaps the most important of the pros of in-house IT solutions is that the management does not get to worry about dealing with a multitude of vendors and employees. Each employee will have their computer, and the same goes for the vendor. All of this can lead to wasted time and energy. With in-house IT solutions, the only person involved in the business owner. This eliminates the vendors and employees and reduces paperwork greatly. This is the ultimate in efficiency and cuts down on wasted time and effort while helping to grow the business.
Direct Access to Services
In-house services offered by companies are cost-effective and ensure that the business attains maximum productivity. These services are rendered directly without involving the other business units and hence, do not incur any extra expenses on the part of the business owner.
Technology Deployed within Business Operations
Another advantage of in-house IT solutions is that the solutions become a part of the business infrastructure and become part of the daily operations. Since the technology is deployed into the business operations, the business benefits from the application, which is one amongst the main reasons businesses prefer to implement these services. The use of technology allows for faster and more efficient deployment of these applications, and this is one out of the key factors that increase productivity, profitability, and market share.
Elevated Security Measures & Standards
This service also allows for better security measures. It is not uncommon for intrusions and viruses to decrease the efficiency of IT operations, and when it comes to sensitive information, security is the key. The in-house solution tends to be reliable, and this is because the IT department has direct access to the source code, and this ensures software quality and security.
Cons
One major disadvantage of in-house solutions is that the cost involved is usually considerably higher than outsourcing.
Another major disadvantage is that maintaining in-house solutions can be extremely time-consuming, and this may prove to be a deterrent to achieve optimum business results.
Difficult to Customize Processes
It may also prove to be difficult for you to customize IT solutions to suit your unique requirements. Customization requires substantial additional investment in terms of time, money, and effort. Furthermore, the process involves employing people and technology to accomplish the desired goals of your business. Ultimately, these additional resources will prove costly concerning the returns you will realize in the long run.
In-House Employees Can’t Get Everything Done
Although employees receive training on specific tasks related to their job responsibilities, there are still several areas that the trainees do not understand or have not been trained for. It simply implies that not all the in-house employees can do everything. And, being a member of the team doesn’t mean that they are professional enough to carry forward all sorts of tasks. As a result, businesses do not get the benefits that they have paid for.
Delayed Implementations & Solutions
Companies that rely on in-house IT solutions may also experience delays in implementing solutions because the trainees often have problems understanding the intricacies of the solution. These delays, coupled with the costs associated with purchasing the IT solutions, can create significant disadvantages for companies.
Outsourced Versus In-House IT Solutions
Considering all these points, many companies are now turning to outsource to reduce costs and improve efficiency. Outsourcing allows companies to control their budgets while concentrating on providing the best services to their clients. By hiring an outsourced solutions provider, companies can focus on providing high-quality IT solutions without taking on too much of the responsibility themselves. Outsourcing eliminates many of the disadvantages of in-house solutions, allowing companies to save both time and money on IT solutions.
Attain the Top of Both Worlds by Combining In-House & Outsourced IT Solutions
It is often said that you can combine in-house with outsourced IT solutions for the best results. This is mainly because when you integrate both technologies in the same organization, you have two business processes and not just one, as is the case when you operate in-house. When you combine in-house with outsourced IT solutions for best results, you get to enjoy several advantages that are both obvious and invisible. Some of these advantages are reduced costs, enhanced organizational efficiency, improved productivity, better utilization of technology, and better use of human capital. Let us enumerate these advantages one by one and then explore how these advantages could be realized when combining in-house with outsourced IT solutions for the best results.
There are several ways to combine in-house with outsourced IT solutions for best results. The first and most obvious way is to share internal resources. For instance, you can put all the necessary data maintenance work in the hands of an expert who will be taking care of all the tasks. This will ensure that you can focus on other key priorities, such as improving customer service. Another way to combine in-house with outsourced IT solutions is to outsource the critical tasks to a third-party company. This will ensure that your company maintains a consistent IT infrastructure.
When combining both in-house and outsourcing IT solutions, it is important to carefully consider all the relevant factors to your organization. Identifying your company's unique set of circumstances is the best way to determine how you can best implement these solutions. It may take some time and analysis to sort through the facts to find the right choice. However, by weighing the costs and benefits and keeping them side-by-side, you can make an informed decision and elevate your company’s business procedures in the future.
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