In Ukraine, more and more companies decide to outsource IT services, although some of them are not even aware of it. IT outsourcing has already become a part of modern business in Eastern Europe, as one of the elements of companies’ operational strategies. The outsourcing trend has been around for years and looks set to continue. Many people may have come across the term “outsourcing” or have used (or actively) use such services provided by external companies. Why did we decide to outsource IT services and what are the benefits of working with an outsourcing partner?
Outsourcing IT services is a form of outsourcing to an external contractor to create a website, mobile application or implement an IT system, or to hire a specialist from another company for the needs of a specific project. However, many Ukrainian entrepreneurs are still afraid of this word. Moreover, if their company has its own IT team and all projects are implemented independently. But having an entire development team or IT in a broader sense isn’t always as flexible as you might want, not to mention that it can be a very expensive solution. In addition, the problem of recruiting employees with the appropriate knowledge and skills is becoming an increasingly serious problem for many companies. Outsourcing is increasingly being talked about in the context of the business sharing economy, and outsourcing IT services is addressing the hiring challenges facing the industry.
Outsourcing of developers for companies and corporations and the problems of the IT industry
Wages in the IT industry are growing regularly. In the area of software development and implementation, they maintain a constant trend of 10% year on year. The industry recorded similar growth in early 2020. Therefore, companies whose main activity is not directly related to software development can have big problems in providing the developer with the conditions of employment they expect. Or vice versa – ignorance of market realities will lead to an overestimation of the cost of hiring such a specialist. Moreover, in the IT industry, remuneration is not the only determinant of hiring success. Also, programmers expect complex social benefits, recreational opportunities, a modern office or such subjective conditions as providing work in interesting, developing projects. Therefore, smaller companies or those working in completely different spheres of the economy are complaining about the growing problems with maintaining their own IT resources.
Why do we decide to outsource IT services?
The most common reasons for outsourcing IT services are:
- Lower costs – need to lower costs or be more flexible in keeping them under control.
- Scalability – we need to be sure that we can quickly develop resources when they are needed.
- Quality and professionalism – many IT projects fail. We need to make sure that the team consists of experts who understand the company, requirements, as well as complex business processes and are able to perform tasks so that the company and customers are happy with the product and services.
- Delivery time – you need to assemble a team and launch the project within 2-4 weeks. The project must be implemented quickly and efficiently.
- Communication – the team should be well aware of the needs, and at the same time they should feel comfortable communicating their position.
The last two elements are especially important in terms of outsourcing IT projects. The specificity of IT projects is that the customer must be in constant contact with the specialists implementing the project. Otherwise, the client’s expectations may diverge from the progress of the project. And this means serious financial losses. In the era of remote project implementation, it doesn’t matter what city you are in Kyiv, Odesa, Dnipro, Lviv or Vinnytsia, because outsourcing partners have all the necessary tools and infrastructure at their disposal.
Why work with an external IT service provider?
According to most outsourcing reports, more than 70% of businesses choose to partner with an external vendor precisely because of their access to specialized security knowledge and know-how. A key requirement at iTizzi, which provides outsourcing and staff development services, is to hire a person to act as a data protection officer. Such a person is fully responsible for monitoring and complying with data protection rules. An important safety factor is also the awareness of our staff and clearly defined rules for working on the territory of the company and outside it. It should be remembered that in the relational business the weakest link is the person, therefore, the awareness of the value of information and its security is a fundamental aspect of our company as an IT outsourcing provider.
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