For many businesses, it’s frequently not practical — or cost-effective — to source IT professionals locally. Their resources can be applied more effectively by subcontracting IT positions to employees on the other side of the country, or on the other side of the world. Additionally, smaller businesses may not be able to offer a salary that’s competitive in a city with a high cost of living, but would be very generous to an international prospect. This allows companies to maximize their resources and hire more talented and experienced IT employees abroad than they would be able to acquire in their region.
IT outsourcing means utilizing an external service provider to assist with your company’s IT (Information Technology) needs.
Benefits of IT Outsourcing
There are several benefits to hiring an IT outsourcing company to help you expand your staff, and scale your IT department to tackle large projects.
No Hiring Required
Outsourcing means bringing an employee on as a contractor as opposed to hiring them directly. Outsourced contractors cost far less in terms of salary, and you also save money for training and benefits like health insurance that you’d be required to provide to a US-based employee.
A Global Talent Pool
Remote work allows businesses to recruit from professionals all over the globe. This allows you to draw from a diversified talent pool, both in terms of experience and skills, that you likely wouldn’t find in a single city. For local hiring, companies may have to compromise on experience or abilities in order to fill a role — or when no candidate is found — leave the position unfilled!
Lower Labor Cost
It’s estimated that more than 300,000 jobs are outsourced by the United States each year. That’s because outsourced IT workers can be acquired at a steep discount. Companies are able to hire international employees at a far lower rate than they could find in the United States. This allows them to increase the size of their team at a fraction of the cost of hiring locally.
Reduce Fixed Expenses
Outsourcing technology services allows companies to turn fixed costs into variable costs. You can increase or decrease the size of your IT team on-demand, allowing for budget flexibility.