Taking your first step towards software outsourcing can be overwhelming and the decision making process will also include the prime assessment of a wide range of factors. Identifying whether investing in a particular technology to execute and support mission critical projects requires skills and a clear understanding of business benefits.

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The What, When and How of IT
Outsourcing: A Guide

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Table of Contents
 The What, When and How of IT Outsourcing: A
Guide
 When should you hire a third party service
provider?
 What IT operations can be outsourced?
 How to outsource your requirements effectively?

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Leading organizations all over the world are making great
commitments to business transformation. The prime goal is to
attain greater efficiency, agility and profitability, which are
the vital ingredients of a successful business. Typically,
business organizations begin with the transformation by taking
a look at the best possible means
to run all their process and
business operations. The ultimate
result of this self-analysis is the
prime focus on specific and
strategic core competencies, which
enable organizations to deliver a
unique value to the customers and
enjoy a competitive advantage.
Now elements of the business that do not form an integral part
of the core competencies are viewed as something that can be
outsourced from third parties to gain in terms of effectiveness,
productivity and efficiency. Outsourcing is not about getting

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work done by others, it is all about the flexibility of utilizing
the best resources in the right place and at the right time. The
analysis determines that there is a strong need to sub-contract a
particular operation or process, then the organizations start to
search for an outsourcing partner having expertise and
experience in technology or other capabilities based on best
industry practices.
Taking your first step towards software outsourcing can be
overwhelming and the decision making process will also
include the prime assessment of a wide range of factors.
Identifying whether investing in a particular technology to
execute and support mission critical projects requires skills and
a clear understanding of business benefits. In this piece of
writing, we will help you to understand when, what and how to
outsource your requirements.

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When Should You Hire a Third Party
Service Provider?

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1. Improve company focus: It is not practical to be a jack of
all trades. Getting everything done in-house will often lead to
reduced quality. Getting some expert companies working for
you will allow you to focus on your core competenciesand reap
the best results.
2. Gain access to expertise: The returns on investments are
often greater when you become a partner with someone who
specializesin a particular area. You can immensely benefit
from the collective experience of a team of professionals.
3. Boost restructuring benefits:When you plan to
restructure your company to improve quality, service, cost or
speed, some of your non-core business functions often get
pushed aside. They can be perfectly handled by getting the tasks
done by some other companies.

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4. Handle functions that are difficult to manage: Getting
experts to work for you on functions or processes that are
difficult for you to manage can often help you to make a big
difference.
5. Reduce risks:To keep up with the latest technology needed
to run your business successfully can be time consuming and
costly. Professional IT experts work with various clientsand
remain updated about the latest trends. Getting them to work
for you will dramatically reduce the risk of taking costly wrong
decisions.

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What IT operations can be outsourced?
Whether you want to create a business critical application or a
sales presentation for your potential customer or want to
communicate with partners, clients through technology, most
organizations can’t operate without
a software or internet. With
business growth, the complications
also arise and it becomes difficult
to keep track of everything in-
house. It is important to call
experts to maintain and upgrade
technology without affecting your
business growth so that you can
focus on your core strengths.
The cost of outsourcing IT services will pay for itself as your
issues will be quickly addressed within time and you can focus
on meeting your customer’s needs more efficiently.

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Some services that can be easily outsourced include:
 Software development
 Spam, virus and other security issues
 Website hosting
 Highly skilled experts
 Repetitive tasks like data entry or accounts payable
 Data backups, transfers and recovery
 Maintenance and support of applications
Document related processes or creating latest IT solutions to
streamline business processes have hidden complexities and
needs to be managed efficiently. Hiring a third party having
expertise often leads to improved productivity and easy
management of mission critical activities.

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How to outsource your requirements
effectively?

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You deserve great quality of work from anyone you hire. But
the fact is that even a genuine third party that ensures the best
possible output may go wrong while working on your project.
This is particularly because there are lots of rooms for
mismatched perceptions and misunderstanding. Adopting some
best practices can help to get the best results and attain the
company’s objectives.
Choose the best service provider that has the desired
expertise to meet your business requirements and
objectives.
Define the business scope and establish clear objectives of
your project. This will include project specifications and
requirements that are as detailed as possible.
Track the progress of the development of the project in
different stages to ensure that it is proceeding in the right
track.

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Communicate effectively with the third party for regular
reports of progress to clearly understand from becoming
misaligned.
Consider a project manager who is in direct contact with
the developers or other experts to effectively communicate
with you to avoid misunderstandings.
Now that you have clearly understood how to manage your
outsourcing needs, you will be able to focus more on your key
competencies and outsource specific work to vendors having
expertise in that particular area.

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IDS Logic Pvt. Ltd.
India office
D-40,
Sector-6,
Noida, UP, 201301
India
+ 91 120 423 5665
UK office
Regus City West, Building 3,
City West Business Park
Gelderd Road, Leeds,
LS12 6LN, UK
(0)1138 150 160