subject: It Outsourcing Is On The Rise [print this page] If you have been following developments in the world of business over the past few years, then it is not lost on you that outsourcing is the new way of doing business all over the world. The advent of the internet and information technology greatly transformed business operations as was known in the 60s and 70s. Simply speaking outsourcing is basically getting an outside company to do specific tasks for your business at a fee. Apart from incredible cost saving, there are several other strategic reasons that have made small businesses go the outsourcing way. Of special interest is the rise in firms that outsource it support. According to the US Bureau of Economic Analysis (BEA), US businesses outsource IT services worth tens of billions of dollars every year.
You might have been wondering why small and medium businesses are opting to take this route. Well, heres why: some of the key strategic reasons behind the exponential rise in IT outsourcing include maximizing the flexibility of the business model and access to new capabilities and talents. If youve ever operated a small business, then its not lost on you that some years back, businesses undertook each and every aspect of their operations. Not even the mundane letter was outsourced. Then they started by contracting the post offices to deliver their mail, commercial couriers and ultimately the internet. Outsourcing of services has developed explosively over the past few years to a point where precise functions of any business such as IT services can be carried out under the most optimal conditions anywhere in the world.
According to a study carried out by PriceWaterhouseCoopers (PWC), 87 percent of IT outsourcing clients are satisfied with the services offered with a majority saying they felt the outsourcing services were actually in line with the original business plan and profit projections. Ninety one percent of the clients said theyd definitely outsource their IT needs again. If you are the proud owner of a small business and you have been searching for small business outsourcing services, then you are definitely headed in the right direction. Small enterprises look to gain access to talent that they may not have or to farm out their activities to IT specialized firms that they feel can do a better job in IT related services.
Apart from accessing refined resources and talent, IT support for business helps your business expand geographically, enhance your customer relationship and improve your market segment foothold. According to the US Department of Commerce, two of the biggest challenges that businesses seeking IT outsourcing face is the cost benefit rationalization or justification and inexperience. Deliberate steps to overcome these challenges have however been taken by both IT service providers who provide IT support for business and the service seekers: they have adopted a collaborative business model that is more efficient than the traditional models.
Outsource it support and join 80 percent of small business owners in the US who outsource their IT needs in order to cut costs, gain access to talent/capabilities that they may not have such as human capital, physical resources and process excellence as well as gain strategic benefits according to the US Bureau of Economic Analysis (BEA).
by: Dennis Chernik
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