Top 5 Reasons Why Small Business Should Outsource Their IT Function
In the present business scenario, it is the small businesses that are driving the growth of western economies. However, these businesses are the ones that face the maximum number of challenges in terms of talent shortage, lack of working capital, outdated IT systems etc. In such a scenario, it a good idea for them to outsource their IT function to offshore locations where talent is abundantly available. By doing so, these businesses can not only beat the talent shortage, but can also update their IT systems. In fact statistics show that the successful SMEs are the ones that have already outsourced their IT function.
Here are the top 5 reasons why small businesses should outsource their IT function to offshore locations:
Outsourcing allows small businesses to tap the best IT talent of developing economies: The emerging economies like India have abundant IT talent. This is because these countries have been spending consistently on developing high end skill sets. The highly qualified human resource in these countries is more than willing to work for international clients for it gives them the opportunity to earn foreign revenue. So, by outsourcing their IT to countries like India, western small businesses can tap IT talent available there.
SMEs can make their revenue earning processes more agile: In the highly competitive SME segment, only those players become successful that are able to concentrate on their revenue earning processes. If you are a small time travel agency and have to grapple with both sales as well as IT systems, it obviously gives you negative results. However, if you outsource your IT to specialists at an offshore location, you can easily concentrate on your sales, which gives you revenue. In addition to this you will get readymade and customized IT solutions.
SMEs are able to get a competitive edge by reducing operational cost: Though outsourcing is no longer only a cost saving tool, it still gives SMEs benefits like economies of scale, savings on talent acquisition, training and employee benefits. These savings not only give more resources to apply on your revenue earning processes, but also give you the much wanted edge over your competition.
Small businesses are able to reduce IT downtimes: Small businesses work in a highly competitive marketplace where a single IT snag can cost them dearly. However, by outsourcing their IT function to experts, SME can reduce IT downtimes to the minimum. This is because the IT vendor not only provides them with customized solutions, but also gives 24X7 customer support. The vendor can fix any IT related issues within the minimum turnaround time.
SMEs can retain more resources to take care of their core business: By hiring a team of IT professionals at an economically cheaper location SME get the benefit of labor arbitrage and hence save a lot of money. They can utilize this money to hire and retain more resources that can take care of their core business. This becomes a win-win situation for SMEs and they are able to enhance their business.
IT outsourcing gives SMEs multiple benefits like labor arbitrage, customized IT solutions and 24X7 customer service. These benefits translate into better focus on core business and eventually an edge over competition.
Here are the top 5 reasons why small businesses should outsource their IT function to offshore locations:
Outsourcing allows small businesses to tap the best IT talent of developing economies: The emerging economies like India have abundant IT talent. This is because these countries have been spending consistently on developing high end skill sets. The highly qualified human resource in these countries is more than willing to work for international clients for it gives them the opportunity to earn foreign revenue. So, by outsourcing their IT to countries like India, western small businesses can tap IT talent available there.
SMEs can make their revenue earning processes more agile: In the highly competitive SME segment, only those players become successful that are able to concentrate on their revenue earning processes. If you are a small time travel agency and have to grapple with both sales as well as IT systems, it obviously gives you negative results. However, if you outsource your IT to specialists at an offshore location, you can easily concentrate on your sales, which gives you revenue. In addition to this you will get readymade and customized IT solutions.
SMEs are able to get a competitive edge by reducing operational cost: Though outsourcing is no longer only a cost saving tool, it still gives SMEs benefits like economies of scale, savings on talent acquisition, training and employee benefits. These savings not only give more resources to apply on your revenue earning processes, but also give you the much wanted edge over your competition.
Small businesses are able to reduce IT downtimes: Small businesses work in a highly competitive marketplace where a single IT snag can cost them dearly. However, by outsourcing their IT function to experts, SME can reduce IT downtimes to the minimum. This is because the IT vendor not only provides them with customized solutions, but also gives 24X7 customer support. The vendor can fix any IT related issues within the minimum turnaround time.
SMEs can retain more resources to take care of their core business: By hiring a team of IT professionals at an economically cheaper location SME get the benefit of labor arbitrage and hence save a lot of money. They can utilize this money to hire and retain more resources that can take care of their core business. This becomes a win-win situation for SMEs and they are able to enhance their business.
IT outsourcing gives SMEs multiple benefits like labor arbitrage, customized IT solutions and 24X7 customer service. These benefits translate into better focus on core business and eventually an edge over competition.
