Outsourcing Revealed, Do You Actually Need To Outsource

US Phone: +1-585-591-6050
India Phone: +91-120-3937300
UK Phone: +44-845-869-7579
Website: www.ibosstechsolutions.com
Email: info@ibosstechsolutions.com
TABLE OF CONTENTS
Letter of Intent...................................................................................................................1
What does Outsourcing mean?.........................................................................................2
What Outsourcing doesn’t mean?....................................................................................3
Reasons to Outsource........................................................................................................4
Advantages of Outsourcing...............................................................................................5
The Disadvantages of Outsourcing..................................................................................6
Factors of Successful Outsourcing...................................................................................7
Examples of some services to outsource..........................................................................9
Letter of Intent
Dear Reader,
Today's modern business is dependant on information technology as we store more and
more business information on the networks we use. Ensuring that information is readily
available and maintains privacy while at the same time is inexpensive is a challenge faced
by many businesses.
Many Businesses do not have the resources to look after their IT needs or have an
internal IT department with a varied expertise in different verticals such as networking,
security, database management and Software development that costs too much. This
document will take you through the meaning, advantages, disadvantages and the points
that you should consider before outsourcing your IT team to an outsourcing service
provider.
We believe that the cost of managing the IT environment in the developed countries like
USA, UK, Canada and Germany is just too high; companies are even willing to spend an
enormous sum to get it down in some way.
Outsourcing some, if not all, of their IT functions is an option they should consider as a
solution to this problem.
We hope that this document would help you in determining the need for you to outsource.
Kind Regards,
Harkirat Singh Bedi
Business Promotion Manager
iBoss Tech Solutions Pvt. Ltd.
US Office India Office
6916, Castle Peak Drive,
West Hills,
CA 91307
B-59, 1st Floor,
Sector 63
Noida - 201301

US Phone: +1-585-591-6050
India Phone: +91-120-3937300
UK Phone: +44-845-869-7579
What does Outsourcing mean?
Many companies are already familiar with outsourcing as they usually outsource
functions such as deliveries, cleaning and building maintenance to outsourcing service
providers.
Outsourcing the IT function implies delegating the management and support for all or
some of their IT requirements to an outsourced service provider.
That outsourcing service provider may provide the agreed service by having their staff
visit the business regularly and deploying their own staff onsite full time or they may
provide the service remotely at the same or a different location or country.
IT outsourcing can be defined as the transfer of operational onus of IT business processes
or infrastructure management to an outsourcing service provider.
Outsourcing can also be defined as the arrangement whereby firms contract with
independent counterparts in the same vis-à-vis another country to carry out particular
stages of production.
West Hills,
CA 91307
B-59, 1st Floor,
Sector 63
Noida - 201301

US Phone: +1-585-591-6050
India Phone: +91-120-3937300
UK Phone: +44-845-869-7579
What Outsourcing doesn’t mean?
Outsourcing IT is not the cure to all ills.
If there are fundamental troubles either with the business processes the IT infrastructure
is supporting or with the IT infrastructure itself, outsourcing the management and support
of the infrastructure will not eradicate those problems.
Outsourcing should also not be seen as an interim solution to a particular problem. For
the business to reap the full advantages of outsourcing, it should develop a continuous
and longstanding relationship with the outsourcing provider.
Upon outsourcing an IT function and delegating the management and support of that
function to an outsourcing service provider, outsourcing should never be seen as a means
for finishing the responsibility for that function.
In conclusion, the success of the IT business lies with the owner and management along
with the support of the outsourcing service provider. It is important that a company
considers outsourcing some, or all of its IT and retains the overall responsibility for the
function in-house.
West Hills,
CA 91307
B-59, 1st Floor,
Sector 63
Noida - 201301

US Phone: +1-585-591-6050
India Phone: +91-120-3937300
UK Phone: +44-845-869-7579
Reasons to Outsource
There are many grounds on which businesses should consider outsourcing some or all of
its IT functions.
Shortage of internal resources
With the growing dependence on complex IT systems, there may not be enough internal
resources available to complete all tasks to the level required by the business.
It is to be seen that with the given the small number of resources many businesses operate
with, any activity that is time consuming and ties up valuable resources will have a
negative impact on the company’s bottom line.
Skill shortage
The company may not have the skills with them to complete a process. This is
particularly true for specialist functions such as email, data entry or database
administration.
Cost reduction
A task that can be completed more inexpensively by an outsourcing service provider can
help reduce costs by eradicating the need for that role within a company or by re-
allocating existing resources into more revenue generating/production/supporting roles.
If any of the businesses IT functions meet any or the entire list of criterion mentioned
above then it should consider outsourcing that function to an outsourcing service
provider.
Replacement of a poor onshore service
Whether it is because of lack of skills or lack of available resources, some IT functions
may not be provided at the levels required by the business. The cost of training current
staff or providing additional resources to address the problem may be too prohibitive.
West Hills,
CA 91307
B-59, 1st Floor,
Sector 63
Noida - 201301

US Phone: +1-585-591-6050
India Phone: +91-120-3937300
UK Phone: +44-845-869-7579
Advantages of Outsourcing
The primary advantages outsourcing can bring are
Focus on core business
By outsourcing repetitive and non-essential tasks, staff can focus on the core business
functions to better support the business and its clients and generate competitive benefits.
Frees resources
Resources are not fixed up with non-essential and repetitive tasks and can be re-deputed
to more business valuable tasks.
Access to more resources
Outsourcing can provide more resources and expertise that can be always looked upon
when required.
Better cash flow
In some instances where a service is outsourced for a fixed hourly fee, the company can
better plan and budget its cash flow.
Better service levels
Outsourcing to an outsourcing service provider whose core business is providing the
agreed services at a desired level can result in better service levels.
Shares the risk
Having a provider bound to provide a service shares the liableness of ensuring that
service is delivered.
West Hills,
CA 91307
B-59, 1st Floor,
Sector 63
Noida - 201301

US Phone: +1-585-591-6050
India Phone: +91-120-3937300
UK Phone: +44-845-869-7579
The Disadvantages of Outsourcing
Outsourcing can bring a number of disadvantages to the IT business, especially if the
outsourced agreement has not been thought of carefully. It is important to consider and
address these issues before committing to outsource any of your services.
Deterioration in service
The selected outsource partner itself may not have the required skills or manpower
available to provide the agreed level of service.
Service provider may close down
There is always the possibility that the outsource provider may close down in the area of
the outsourced service.
Role duplications
If not identified properly with the provider, some of the outsourced tasks and roles may
still be performed in-house and result in duplications of tasks and roles which in effect
wont provide the expected benefits.
Lack of flexibility
One of the advantages that businesses have over their larger competitors is the ability to
be dynamic.
If the wrong processes are outsourced, this flexibility could be adversely impacted.
The above risks can be mitigated by careful planning and thorough research in the initial
phases of outsourcing the services.
West Hills,
CA 91307
B-59, 1st Floor,
Sector 63
Noida - 201301

US Phone: +1-585-591-6050
India Phone: +91-120-3937300
UK Phone: +44-845-869-7579
Factors of Successful Outsourcing
Good Home work is the key to successful outsourcing. Lack of adequate home work acts
as a deterrent to many outsourcing initiatives.
The time and effort spent on the home work before signing the contract pays dividends
later on in the business relationship.
Accept the company cannot do everything
There are few businesses, unless directly involved in the technology sector, who can
claim IT is their core competency. As a result, businesses should look at what IT
processes are essential and required to the core of their business and what tasks should be
outsourced.
Carefully select processes to outsource
Identification of companies where the work can be outsourced and the analysis of the
functions that can be outsourced can be performed by starting to give small pieces of in-
house work to the outsourcing service provider and then move on to larger chunks for a
smooth transition.
Badly run IT functions and non-essential tasks are the prime candidates to outsource.
It should be pointed however that the overall responsibility for strategic functions should
remain within the company as no outsourcing service provider will be able to run your
company for you.
Scrutinize problem areas
If you put the load for poorly defined functions or problems onto an outsourcing service
provider, you shall not succeed. If the problems are due to badly designed IT processes
or poorly understood business processes, then this transfers the problem from one party to
another and provides for a confrontational relationship.
Instead, identify where the problems lie and agree what can and cannot be delivered.
West Hills,
CA 91307
B-59, 1st Floor,
Sector 63
Noida - 201301

US Phone: +1-585-591-6050
India Phone: +91-120-3937300
UK Phone: +44-845-869-7579
Clearly defined roles
It is important when outsourcing, roles at various functions of the IT system are clearly
defined, agreed and demonstrated. Many outsourcing contracts fail because the roles and
responsibilities for some functions and tasks are not clearly defined resulting in more
costs.
Set sensible goals and objectives
Clearly agreed documented service levels and sensible goals that the outsource provider
must meet will ensure that both parties are signing the contract with clear and realistic
objectives and goals.
Go through track records
Select a service provider who has a built track record in the arena and particularly in
providing required services. Do ask the service provider the evidence of their expertise
and experience, so that you are sure that they will be alive in future.
Always seek customer references for companies with similar requirements and verify
those references. Ask for local references for sure.
Meet regularly and see the process model is being followed
It is important to have regular meetings to support a structured reporting and
communications process. These meetings should be an opportunity to work with the
outsourcing service provider to ensure that
a. Agreed objectives and service levels are being met,
b. Problems and issues are being addressed
c. Future plans are being shares so that both parties can better plan their future.
Be prepared
As with any relationship, an outsourcing relationship has its problems. If both parties
enter the contract with proper home work, planning and communicate clearly and
honestly, both parties can ensure a longstanding success of the outsourcing engagement.
West Hills,
CA 91307
B-59, 1st Floor,
Sector 63
Noida - 201301

US Phone: +1-585-591-6050
India Phone: +91-120-3937300
UK Phone: +44-845-869-7579
Examples of some services to outsource
• Software Development
• System Integration
• Web Development
• Migration and Porting
• Custom Application Development
• Support and Maintenance
• Product Development and Re-engineering
• QA & Testing
• Customer Support
Outsourcing these functions to an outsourcing service provider can release valuable IT
resources to concentrate on more revenue generating tasks.
Thank you again for your time in reading this document.
We hope that we have answered many, if not all the questions that you had about
outsourcing.
If you still have any questions, do drop in a mail at info@ibosstechsolutions.com or call
us at any of the phone numbers mentioned above.
We look forward to hear from you.
Thanks and Regards,
Team
West Hills,
CA 91307
B-59, 1st Floor,
Sector 63
Noida - 201301

US Phone: +1-585-591-6050
India Phone: +91-120-3937300
UK Phone: +44-845-869-7579
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West Hills,
CA 91307
B-59, 1st Floor,
Sector 63
Noida - 201301

Outsourcing Revealed, Do You Actually Need To Outsource

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Outsourcing Revealed, Do You Actually Need To Outsource