Benefits of Outsourcing IT Projects in Economic Downturns
In today’s challenging economic climate, businesses face numerous obstacles to growth, including tight budgets, increased cost pressures, and uncertain market conditions. As a result, many organizations seek solutions to optimize their operations and cut costs.
According to the International Organization for Standardization (ISO), outsourcing can help companies reduce costs by an average of 15 percent. And, of course, there are always outliers – some companies save far more.
With this in mind, let’s explore why outsourcing large IT projects can be a viable strategy during economic uncertainty.
Access to Skilled Talent
According to McKinsey, an eye-watering 87% of companies worldwide know they either already have a skills gap or will have one within a few years. The skills gap refers to the disconnect between the skills companies require and the ones workers possess. And it’s widely considered a growing problem across the IT sector.
Outsourcing IT projects can be innovative because it gives businesses access to a pool of skilled talent that may need to be more readily available in-house. This allows companies to tap into specialized expertise, accelerate project timelines, and potentially reduce costs while leveraging the skills and capabilities of external teams with the required technical know-how.
Developer Velocity
McKinsey’s comprehensive study of 440 large enterprises uncovered the secret to achieving exceptional developer velocity – the speed and efficiency at which software is developed. Their findings revealed that four crucial areas are pivotal: tools, culture, product management, and talent management. According to the study, organizations that excel in these areas have been shown to outperform their competitors by up to five times.
Outsourcing can significantly contribute to achieving and supporting developer velocity by providing access to a skilled and specialized workforce, utilizing advanced development tools, leveraging efficient product management practices, and fostering a culture of collaboration and innovation. The result? Accelerated development timelines, increased productivity, and improved software development performance.
Knowledge Sharing
Outsourcing can facilitate knowledge sharing by bringing in external expertise and diverse perspectives. Outsourcing partners can share best practices, industry insights, and cutting-edge technologies, which can enhance the internal knowledge base of a company. This cross-pollination of ideas and expertise can foster innovation, promote learning, and enable organizations to stay updated with the latest industry trends, ultimately leading to improved performance and competitive advantage.
Whatsmore, 91% of employees today express frustration over inadequate workplace technology, and 71% consider changing employers as a result . With this in mind, knowledge sharing can inject a much-needed boost by providing expert teams with in-depth knowledge of efficient tools, enabling businesses to address employee frustrations, retain talent, and enhance workplace technology.
Faster Deployment
Here’s the bottom line. Experienced experts with established processes accelerate project timelines and reduce time-to-market. For example, let’s consider an organization that wants to strengthen its cybersecurity posture to protect its critical systems and sensitive data from potential cyber threats. They also want to act quickly because cyber attacks are on the rise.
The project involves:
● Conducting a comprehensive cybersecurity assessment.
● Developing a customized cybersecurity strategy.
● Implementing advanced security technologies.
● Establishing robust security measures across the organization’s IT infrastructure.
However, the institution lacks the in-house cybersecurity expertise needed for a robust and fast deployment. By outsourcing the cybersecurity project to a reputable cybersecurity services provider, the company can leverage the external team’s expertise in cybersecurity, cutting-edge technologies, and project management techniques. And this can result in faster deployment of a robust cybersecurity solution.
