Outsourcing can yield substantial cost saving, help management better focus its energies and provide companies with improved service as well as access to the latest technology. Because in-house service providers do not face the same types of market pressures as outsourcer, it is often difficult for them to provide the same level of services an outsourcer on the cost competitive basis. That's also the reason why outsourcing is an attractive business option.
Why do companies outsource their IT services?.
Outsourcing is a smart management practice that helps you improve your business focus and enable you to take advantage of world-class capabilities.
Almost every business is facing the challenge of fighting off competition and retaining customers whilst minimising costs. One way to achieve this is to delegate labour or IT-intensive business processes to a third party provider which offers economies of scale, scope and learning to manage the processes based upon agreed performance metrics.
Typical IT services of business companies are: Data Entry; Forms processing; Back Office Operation; Insurance Claim Processing; Medical Transcription; Data Conversion; Call Centre; Web Design and Promotion; as well as Scanning and Image Editing, etc.
As markets worldwide continue to deregulate in the technology and communications sectors, outsourcing of IT services has become more acceptable. But concerns on security and performance are the reasons why many companies are unwilling to outsource their IT services. Companies are wary about new applications service providers, information service providers, and the data storage providers that sprung up during the "dotcom mania-.
But as companies become more focused on making the enterprise an e-business, many of them are starting to think of using outside IT service providers. The latter bring solutions to issues, rather than just give them ability to operate specific IT services.