Thinking of Outsourcing IT Service Your Search Ends Here

Thinking of Outsourcing IT Service? Your Search Ends Here!
Outsourcing IT service is the need of the hour if you are looking for a quick turnaround for your solution-oriented
development needs. Let’s understand what Outsourcing IT services mean and how it’s becoming crucial for businesses in
2021 and years to come. According to Statista, in 2021, spending on IT services is expected to amount to around 1.2
trillion U.S. dollars worldwide, a growth of 9.8 percent from the previous year.
Table of Contents:
• What is IT Outsourcing?
• Types of IT Outsourcing
• Which IT services are typically outsourced?
• Pros and Cons of IT Sourcing
What is IT Outsourcing?
IT outsourcing is generally defined as using external service providers for building and delivering IT-enabled business
processes, business infrastructure solutions, and more. Outsourcing IT service includes software as a service and
cloud-enabled Outsourcing that helps in developing the right kind of sourcing strategies. IT outsourcing also
helps enterprises take advantage of the external service provider’s expertise to reduce cost and
accelerate their position in the market.
Types of IT outsourcing
Offshore Outsourcing
Offshore Outsourcing refers to the systematic hiring of a third-party provider in a different area to exploit cost
advantages. It further helps in marking the company’s potential and technological superiority to align market products
with cutting-edge industry solutions. Offshore Outsourcing typically processes the needs of third-party companies that
are located offshore, at a distant location or continent.

Nearshore Outsourcing
The outsourcing IT service from the nearest location or adjacent nation is referred to as Nearshore Outsourcing.
Nearshore Outsourcing is preferred by most businesses due to its convenience and because it is an outsourcing model
that is near to them. Unlike Offshore, the third party companies are located nearby, increasing the chances of business
collaboration.
Onshore or domestic Outsourcing
Onsite or Domestic Outsourcing is a form of Onsite Outsourcing where the service provider sends a team of professionals
and experts directly to the client’s location. Time constraint is a major factor for Onshore Outsourcing IT services as this
type of service often requires an increased amount of workforce.
Cloud computing
Cloud computing services are provided by third-party companies or cloud providers and are referred to as a system that
allows access to storage or developmental platforms. Cloud computing outsourcing IT service is generally
considered to be cheaper, more scalable, and increasingly convenient.
Managed services
Managed services are referred to as Outsourcing IT services based on a contract or subscription. These services are often
used to reduce the workload of in-house IT teams and ensure maximum coverage of IT duties. Managed service providers
have skilled professionals with high expertise and knowledge about the system requirements.
Since the Managed services are on a contract basis, it eliminates the recruiting and training process of the
company. IT also allows companies to pay only for the coverage or services they require and enhance the
infrastructure performance for higher output from revenue-generating tasks. Managed service providers are
also available to work off-hours with fewer workflow disruptions and flexible schedules.
Which IT Services are typically outsourced?
Software Development
• Software Product Development
Software product development is an important process which deals with tailoring and developing specific
features of the software to meet the needs of the market. This type of outsourcing IT service has a repetitive
logical process that helps in building programmed software that stays unique for a business or personal goal.
Software product development generally deals with 4 basic types of software products:
• System Software Products: Software that helps in simplifying application programming such as operating
systems, database management systems.

• Programming Software Products: Set of programs that help developers in creating and maintaining other
programs with the development of tools such as compilers, text editors, debuggers, and more.
• Application Software Products: Development of applications that help perform tasks such as data
management software, media players, and more.
• Embedded Software Products: Development of products that are used to control machines and other devices
through telecommunication channels.
• MVP Development
MVP or Minimum Viable Product Development refers to building software that helps verify business
assumptions and test demand for new products with basic infrastructure. This MVP outsourcing IT services can
be deployed by businesses with a minimal investment strategy.
MVP Development features 2 variants: No-code MVP Development and Code-based MVP Development.
• No-Code MVP Development: No-Code MVP Development helps businesses test out the demand for a new
product without actual coding and using minimal investment strategies. In this form of MVP development,
there can be a landing page that displays the business idea to the audience and helps analyze engaging
features for further development.
• Code-Based MVP: Code-based MVP development has 2 forms, single featured MVP and Piecemeal MVP. Single
feature MVP involves building one key feature that has the core functioning value. Piecemeal MVP involves
a custom application that includes basic features from existing elements. However, Piecemeal MVP can be
upgraded or replaced later.
• App Development (Web/Mobile)
Application Development of Web and Mobile involves the process of creating software for various devices.
Mobile App Development and Web App Development are largely similar and use the same traditional
software development process. However, a key differentiator for Mobile App Development is that the
program is created specifically for taking advantage of the unique features provided by a compact hand-held
mobile device.
Web App Development offers condensed website content that improves functionality and allows access to
mobile-friendly content to a large number of users. Web App Development is often considered a cost-effective
method to enhance Web application processes and increase consumer reach.
• eCommerce Development
The structuring and development of an online business or retail store for proper functionality are known
as eCommerce Development. The process involves frontend and backend development for testing and
deploying at a later stage. eCommerce Development is an outsourcing IT service that improves the scope of
online transactions and increases sales exponentially. Some of the essential elements to keep in mind while
developing eCommerce sites are SEO statistics, the latest programming and technology, networking, and
more.

eCommerce Development ensures higher levels of convenience along with a wider platform that goes beyond
geographical barriers. With eCommerce Development services, businesses can enhance their revenue model
and increase interactivity levels on their site for higher customer engagement.
• QA & Testing Services
QA and Testing Services involve activities that improve functionality, integration, compatibility, performance,
security, compliance testing, and performance. Quality Assurance and Testing Services help in
identifying errors or glitches in the software development process to make the product bug-free and
up-to-date. Testing Services include Mobile Application Testing, Functionality Testing, UI Testing, Security
Testing, Performance, and Load testing, and much more.
Quality Assurance is responsible for preventing software glitches, while Testing Services have the role of using
methods and techniques that identify those glitches. These types of outsourcing IT services are often used by
businesses to avoid any software glitch or error before implementing certain applications. Read
More: Software Quality KPIs: A Complete Guide | ISHIR
• Managed IT Outsourcing
Managed IT outsourcing involves using remote outsources that deliver IT services such as network,
infrastructure, security management to its clients. Managed outsourcing IT services are implemented to
ensure higher levels of scalability and flexibility with increased output levels. Managed IT outsourcing is
typically subscription or contract-based and often involves the replacement of employees within the IT
department of an enterprise.
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