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Technology

What is Information Technology Outsourcing?

By Tess C. Taylor
Updated May 17, 2024
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Information technology (IT) is a vital aspect of doing business today. With so many more consumers taking their business online, information technology outsourcing makes sense, as IT professionals are in big demand in most industries. In addition, many functions of IT can be managed more affordably by outsourcing to independent companies and individuals instead of using in-house providers.

Outsourcing information technology processes takes place in many industries due to several factors. Primarily, this is to control the costs associated with IT processes, some of which can be expensive to manage by onsite staff, who are limited by resources, time and equipment. When IT project needs change or budgets are limited, information technology outsourcing saves money and resources.

Another good reason why information technology outsourcing is used by many firms is because of time factors. Having additional IT support working 24/7 on a project can help improve the chances of getting it accomplished in a more timely manner. In many cases, this can dramatically speed up the time needed to complete a project by important deadlines.

Oftentimes, web or software development projects become complex, necessitating the support of additional IT professionals who specialize in more difficult aspects of projects. Information technology outsourcing is used by companies that are limited in being able to handle new or complicated processes. A task may be more efficiently performed by certified IT professionals who can work around the clock to address the more difficult aspects of the project, something it would take months to accomplish with an existing IT team.

One of the better reasons for using IT outsourcing is to adapt quickly and affordably to the demands of clients. If a company is going to compete in the market today, the company must be able to make changes and improvements quickly in order to retain consumer loyalty. Customers today demand a fast response, products and services that address their immediate needs, and affordable solutions to their problems.

If a firm uses information technology outsourcing on a regular basis, the organization will experience the ability to focus on core business operations. Instead of getting caught up in IT projects that can take away from the business mission, decision makers can leave those lesser details to the IT outsourced staff. In most cases, companies use information technology outsourcing as a partnership to better manage their company and meet overall goals.

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Discussion Comments

By IceCarver — On Oct 08, 2010

Corporations that utilized information technology outsourcing services suffer greatly from a disconnection between the actual inventors, designers, and builders and the people that are providing the support for such constructed products.

This effect leads to many disruptions and misunderstandings of how the products work and the people that are supposed to help consumers resolve the issue. In-house information technology support will lead to quicker, more accurate and direct resolution of equipment and software failures.

By thumbtack — On Oct 08, 2010

My favorite outsourced information technology support calls are the ones where the operator and I actually get to exchange some basic information about our surroundings. Often our day time call for help is actually answered by another person on the other side of the world. Because of this I always ask about the weather and what time it is where they are. The operator is usually very happy for the small talk as it is a nice reprieve from their mundane occupation of chatter and questions.

By FootballKing — On Oct 08, 2010

Contrary to some of the beliefs here in this comment section I do think that the outsourcing of information technology services can be both productive, effective and a pleasant experience.

It is true that I have also had some very unpleasant experiences with technical support providers over the phone. But when thinking about all of my support call needs over the years I can think about times when the support was coming from in the United States and was just as abysmal as a foreign support call.

I think everyone has encountered a lazy, disconnected or rude technology support operator but the question is, how often or under what circumstances has it happened.

All in all I think that there is a bell curve of quality when it comes to the services offered by and support company whether it be domestic or foreign.

Just as the are bad call center employees here in the United States, there are bad call center employees in other countries and it is truly up to the corporations that hire and administrate these centers to keep the quality of service on both an acceptable and even encouraging level.

By FrogFriend — On Oct 08, 2010

@jeancastle00 is completely correct in the analysis of cultural differences and the problems they create in a technology corporation using outsourced technical support services.

Much of my day is spent on the phone to these foreign call centers and multiple minutes can be wasted on a single call just overcoming the speech barriers and hearing problems associated with accents.

When I have to repeat, "what? what was that?" over and over again there is actually a detrimental effect that can happen to the companies reputation as well as profit line. When their customers are spending more time on technology support calls that means that the firm is less efficient with giving the proper support and have higher costs to pay the employees longer as the communication begins to breakdown.

I think that thorough analysis should be completed and studies conducted on the true effectiveness that outsourcing technology support service really has. One consideration that such research must have is to take into account the customer satisfaction level from such outsourced interactions.

By jeancastle00 — On Oct 08, 2010

Information technology outsourcing is one of my biggest grievances with major technology manufacturers and support companies today.

As an Information Technology specialist that deals with many types of hardware and software applications, I constantly run into issues that require me to contact the manufacturer or software developer's support center.

As I am sure some of you who are reading this have experienced, it has become a very popular business strategy to outsource support services to other countries. As the author notes, there are many options for outsourcing and many countries in which companies exist with the specific purpose contracting with American technology corporations.

The downside to this money saving technique and very odd support service option is the differences in culture that exist between the originating country and the support country. Differences in speech, dialect and language are huge hurdles to overcome when having to talk about and troubleshoot issues on complicated computer equipment.

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