There are times when a business faces the need to rapidly delegate a new task to professionals in order to cope with the workload or optimize the efficiency of the operations. There are two major ways of doing so: by enlisting internal (insourcing) or external (outsourcing) expertise. Today we compare IT outsourcing vs insourcing and what works best for your business.
Insourcing — delegating a new task to appropriate specialists form another department of the company. For example, when a company with a call center launches a new product, it is only logical to retrain the customer support reps to help deal with new tasks.
Outsourcing — delegating a new task to relevant specialists OUTSIDE of the company. For example, the existing IT infrastructure runs on a dedicated server farm, but the new product must be released to the cloud — and the IT department does not have the needed expertise yet.
Global companies historically prefer insourcing and launching new internal teams to delegating the IT operations and tasks to a third party. This is justified by reasons like:
- exercising direct control over the resource allocation
- ensuring knowledge accumulation within the company
- utilizing internal work practices and task management system
However, when we take a closer look at IT outsourcing cloud computing services from Managed Services Providers like it outsourcing IT Svit, you can see that these reasons are already taken care of. If you go for IT outsourcing cloud computing tasks to a reliable company, it means that:
- your internal IT team concentrates on mission-critical services and accumulates expertise in that area
- risk control and business continuity are secured with SLA and NDA
- a dedicated team from IT outsourcing company will use your workflows, task management tools and reporting practices
In addition, you gain instant access to top-notch talents with tons of experience in doing projects like yours. This means fewer issues and more predictable project roadmap and schedule.
There are 2 main differences when we compare IT outsourcing vs insourcing.
Establishing a new department using the insourcing approach means paying for office space and equipment, as well as recruitment and training expenses.
On the other hand, IT outsourcing company has all the needed equipment in place and their teams have polished workflows and internal communication. They can simply jump on the project and begin working at once.
Project management and control
When insourcing, you are in direct control of the project. This means you have direct control over the processes, yes — but this adds more managerial overhead to already tight schedules.
When a company is outsourcing IT projects to a Managed Services Provider, they are assigned a personal Project Manager, which acts as a point of contact to delegate the tasks to the team and report on their completion to the customer. This way you can concentrate on growing your business while keeping close control over the IT outsourcing project progress.
Final thoughts: would you choose IT outsourcing vs insourcing?
To sum it up, both IT outsourcing and insourcing are a viable way of dealing with innovative IT projects. You can either delegate the task to a reliable IT outsourcing company or follow the maxima of “want to have it done – do it yourself!”