Outsourcing is a term that is used to seek some resources that are not available inside of an organizational structure currently. Call centres and IT companies mainly use outsourcing as it offers them to save some money and gives them opportunities to exploit the skills from other entities. It is principally used by different rather most of the businesses; outsourcing helps an enterprise with providing them with the services that the enterprise could have been provided themselves on their own. However, they use outsourcing because it is cheaper to approach another third-party resource to do it for them.
Now you know what outsourcing is; the question arrives, What is IT outsourcing?
The idea of IT outsourcing is no different from what is the concept of outsourcing. It’s the practice of using or exploiting skills from other organizations while seeking resources from various third-party entities. That too, in a much convenient price chart. Outsourcing has become a part of the Information Technology function. From infrastructure to maintenance and support to software development. It has significant effects to help the IT companies to get their job done, and it does not cost much.
Different businesses use the outsourcing facilities as they want to outsource their human resources tasks, rather than having a team of dedicated humans to do it on their own. Some companies also outsource all of their data storage just because they do not want to buy data storage devices and maintain it by themselves. Well, according to a Toronto IT Outsourcing company, there are different reasons for different companies to use outsourcing. However, IT companies use outsourcing because building a new IT management team will take much time and cost a lot of money. Plus, they can exploit the skills from the different entities with outsourcing. Most of the large organization who use this facility of outsourcing, they use it to outsource just a portion of a given Information Technology function.
3 Levels of Outsourcing
- Individual Level: – Individual level is the level in which some specific positions move out of the organization.
- Functional Level: – Outsourcing at the functional level works to gain some specialized knowledge and responsibilities for the outsourcing activities
- Process Level: – As the name suggests, this is an outsourcing level where the product and the service move outside of the organization’s functions.
3 Types of Outsourcing
- The Tactical Outsourcing type which only transfers the necessary operations.
- Strategic Outsourcing that mainly considers the future visions and the potential current or future competencies of the firm.
- Offshore outsourcing is the type of outsourcing where a third-party organization is hired to deliver business functions in a country other than where the product service is manufactured.