2. In this modern digital world, we are witnessing extensive changes in
human being’s behavior, the way businesses operate, and customer
preferences. With the advent of emerging technologies, web and
mobile app development services industries have opted for
different strategies and IT outsourcing models to continue their
market services.
Among different services, information technology outsourcing has
created a high buzz recently and is gaining attention from the
business community. According to Wikipedia, Outsourcing is an
agreement in which one company hires another company to be
responsible for a planned or existing activity or could be done
internally. It sometimes involves transferring employees and assets
from one firm to another.
3. Types of IT Outsourcing
Outsourcing encompasses different definitions. Essentially, it is
moving your in-house structure to save money, increase efficiency, or
scale teams faster. However, this can be achieved in different ways
and with other IT outsourcing models.
Offshoring is often interchangeably used for Outsourcing. However,
both terms are different and not interchangeable. So what is
offshoring?
4. Types of IT Outsourcing
Offshoring means outsourcing IT services to a distant geographic
location to benefit from lower labor costs, more favorable economic
conditions, time zones, or a larger talent pool. There is a time
difference of at least 5 or 6 hours which provides uninterrupted
support or constant updates.
Offshoring
Nearshore outsourcing is similar to outsourcing software
development or other IT functions to a location. However, the
location is closer and, in most cases, the same time zone.
Nearshoring enables much smoother communication compared to
offshoring.
Nearshoring
5. Types of IT Outsourcing
Also called homeshoring refers to delegating several business
processes to a different location within national borders. Usually, the
chosen area has relatively low labor and operational costs.
Occasionally, the term “homeshoring” is also used to describe a
situation in which employees work from home.
Onshoring
This effectively means outsourcing business processes to different
vendors, thus mitigating the risk in vendor operations.
let’s discuss why organizations require IT outsourcing companies for
their project as well as the current trends, which helps them to meet
the present market requirements.
Multisourcing
6. IT Outsourcing Models
In this model, an outsourcing company takes over the entire
development process, with complete responsibility for the team,
process, management, and quality. This type of Outsourcing works
best when you don’t have technical expertise for the project or are
swamped with projects in the pipeline.
Full Process Outsourcing
Here, an Offshore IT company offers a dedicated team of developers
that becomes a natural extension of the in-house team, sharing risks
and responsibility for the quality. This model provides a fast team
ramp-up based on your needs. It also results in saving time and
resources on project management
Dedicated Team
7. IT Outsourcing Models
A vendor provides you with remote professionals that you manage
directly on a full-time, part-time, or hourly basis. This model works
best when you need expertise in niche technologies, meet sudden
development deadlines or adapt to changing business needs.
Hire Developer or Remote Resource
8. Change in Outlook towards IT
Outsourcing in the New Normal
The outsourcing industry took a severe blow during the early phase
of the coronavirus pandemic due to travel restrictions, lockdowns,
and quarantines. However, companies now have realized the way to
respond to the crisis, ensuring business continuity. Companies are
determined to create a response mechanism with resilience to
overcome disruptions in the future.
The concerns over remote work delivery by outsourced teams have
been answered. Companies have now naturally accepted that remote
developers can achieve results without compromising productivity
using the latest tech stacks, security policies, and compliance. The
focus has now shifted to digital and workplace transformation.