3 differences in IT outsourcing vs insourcing

Many companies come to a realization they have to disperse their workloads. For example, a company https://itsvit.com/ can begin producing a supplementary product and its current customer support center will not be able to handle the increased workload. Thus said, the choice is simple — creating a new department for this specific task (insourcing) or hiring external experts to do the job (outsourcing). Today we describe the differences between these approaches.

Insourcing is a viable option for larger businesses, as it allows them to:

  • keep the expertise in-house
  • use internal task management system
  • have direct control over workflows and resources.

However, when we compare building in-house IT vs outsourcing, we can quite quickly discover several important benefits of outsourcing IT processes to a relaible Managed Services Provider:

  • Your in-house team concentrates on core tasks and grows expertise there
  • Business continuity and risk management under SLA
  • Access to a large pool of experienced talents
  • Huge R&D expertise readily available
  • Saving costs as compared to paying in-house IT team wages

below we list 4 core differences between working with an IT outsourcing company or going for insourcing of your projects.

Expenses

Insourcing IT processes is generally more costly, as you need to hire a new team, provide them with workplaces and organize their workflows, not to mention paying their wages.

On the other hand, outsourcing IT companies have teams familiar with the common tasks you will pose, and workflows are also already in place. This makes opting for IT outsourcing more cost-efficient, as compared to insourcing.

Resource usage

We briefly mentioned this before, but obviously, insourcing depends on internal company resources. Therefore, while going for this approach, you will need to pay for office space, appliances, stationery, etc., not to mention trade unions, benefits and other kinds of payments.

When working with an IT outsourcing provider like IT Svit, you pay only for the services delivered, on a fixed price or subscription basis. The contractor takes care of all the expendables and workspace needed to deliver services to your business.

Control

This is the main reason why large businesses prefer to invest in IT insourcing instead of going for outsourcing. They think having the staff on site helps execute a more tight control over their workflows and efforts. However, this mostly results in additional managerial and operational overhead.

IT outsourcing provides a golden median between the chaos of freelancing and the watertight control of in-house IT operations. The appointed Project Manager delegates the tasks, controls their execution and reports to the customer on the progress. This allows keeping the hand on the pulse of the project without devoting too much time to controlling everyone and everything.

Conclusions on comparing IT outsourcing vs insourcing

As you can see, while insourcing might seem a more reliable way to disperse the workloads, it can easily become too resource-, time- and effort-costly. Quite the contrary, working with a trustworthy Managed Service Provider allows devoting the efforts of your in-house team to grow your business while having your back safe by experienced professionals.

Leave a Reply

Your email address will not be published. Required fields are marked *