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The What, When and How of IT

Outsourcing: A Guide

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Table of Contents

The What, When and How of IT Outsourcing: A

Guide

When should you hire a third party service

provider?

What IT operations can be outsourced?

How to outsource your requirements effectively?

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Leading organizations all over the world are making great

commitments to business transformation. The prime goal is to

attain greater efficiency, agility and profitability, which are

the vital ingredients of a successful business. Typically,

business organizations begin with the transformation by taking

a look at the best possible means

to run all their process and

business operations. The ultimate

result of this self-analysis is the

prime focus on specific and

strategic core competencies, which

enable organizations to deliver a

unique value to the customers and

enjoy a competitive advantage.

Now elements of the business that do not form an integral part

of the core competencies are viewed as something that can be

outsourced from third parties to gain in terms of effectiveness,

productivity and efficiency. Outsourcing is not about getting

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work done by others, it is all about the flexibility of utilizing

the best resources in the right place and at the right time. The

analysis determines that there is a strong need to sub-contract a

particular operation or process, then the organizations start to

search for an outsourcing partner having expertise and

experience in technology or other capabilities based on best

industry practices.

Taking your first step towards software outsourcing can be

overwhelming and the decision making process will also

include the prime assessment of a wide range of factors.

Identifying whether investing in a particular technology to

execute and support mission critical projects requires skills and

a clear understanding of business benefits. In this piece of

writing, we will help you to understand when, what and how to

outsource your requirements.

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When Should You Hire a Third Party

Service Provider?

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1. Improve company focus: It is not practical to be a jack of

all trades. Getting everything done in-house will often lead to

reduced quality. Getting some expert companies working for

you will allow you to focus on your core competencies and reap

the best results.

2. Gain access to expertise: The returns on investments are

often greater when you become a partner with someone who

specializes in a particular area. You can immensely benefit

from the collective experience of a team of professionals.

3. Boost restructuring benefits: When you plan to

restructure your company to improve quality, service, cost or

speed, some of your non-core business functions often get

pushed aside. They can be perfectly handled by getting the tasks

done by some other companies.

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4. Handle functions that are difficult to manage: Getting

experts to work for you on functions or processes that are

difficult for you to manage can often help you to make a big

difference.

5. Reduce risks: To keep up with the latest technology needed

to run your business successfully can be time consuming and

costly. Professional IT experts work with various clients and

remain updated about the latest trends. Getting them to work

for you will dramatically reduce the risk of taking costly wrong

decisions.

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What IT operations can be outsourced?

Whether you want to create a business critical application or a

sales presentation for your potential customer or want to

communicate with partners, clients through technology, most

organizations can’t operate without

a software or internet. With

business growth, the complications

also arise and it becomes difficult

to keep track of everything in-

house. It is important to call

experts to maintain and upgrade

technology without affecting your

business growth so that you can

focus on your core strengths.

The cost of outsourcing IT services will pay for itself as your

issues will be quickly addressed within time and you can focus

on meeting your customer’s needs more efficiently.

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Some services that can be easily outsourced include:

Software development

Spam, virus and other security issues

Website hosting

Highly skilled experts

Repetitive tasks like data entry or accounts payable

Data backups, transfers and recovery

Maintenance and support of applications

Document related processes or creating latest IT solutions to

streamline business processes have hidden complexities and

needs to be managed efficiently. Hiring a third party having

expertise often leads to improved productivity and easy

management of mission critical activities.

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How to outsource your requirements

effectively?

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You deserve great quality of work from anyone you hire. But

the fact is that even a genuine third party that ensures the best

possible output may go wrong while working on your project.

This is particularly because there are lots of rooms for

mismatched perceptions and misunderstanding. Adopting some

best practices can help to get the best results and attain the

company’s objectives.

Choose the best service provider that has the desired

expertise to meet your business requirements and

objectives.

Define the business scope and establish clear objectives of

your project. This will include project specifications and

requirements that are as detailed as possible.

Track the progress of the development of the project in

different stages to ensure that it is proceeding in the right

track.

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Communicate effectively with the third party for regular

reports of progress to clearly understand from becoming

misaligned.

Consider a project manager who is in direct contact with

the developers or other experts to effectively communicate

with you to avoid misunderstandings.

Now that you have clearly understood how to manage your

outsourcing needs, you will be able to focus more on your key

competencies and outsource specific work to vendors having

expertise in that particular area.

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IDS Logic Pvt. Ltd.

India office

D-40,

Sector-6, Noida, UP, 201301

India + 91 120 423 5665

UK office

Regus City West, Building 3, City West Business Park

Gelderd Road, Leeds, LS12 6LN, UK

(0)1138 150 160