Why You Don’t Need IT Outsourcing Companies From USA
05 April 2021
So, you’re from the states and you are looking for IT outsourcing companies in the USA?
There are countless benefits of using this business approach with an outsourcing company.
These benefits may include anything from marketing to product development and artificial intelligence.
However, outsourcing to a company that’s also in the USA might not be the best option.
With global IT, outsourcing becoming a mainstream business solution, and the options are increasing.
How can you find the right outsourcing company solution for your business model? There are several basic factors to consider, including cost, location, and skillset.
IT outsourcing services are described as contracting with outside vendors to complete staff augmentation. These outsourced functions may include:
- data center operations
- data entry
- app development
- app maintenance
- other e-commerce services
- network management
- network disaster recovery
- network maintenance
Vendors may consist of various third-party personnel. The best outsourcing staff may comprise IT professionals, CPA firms, consulting firms, full-service providers, and more. There is a wide range of consulting and outsourcing services available globally.
Many business models now include engaging outsourcing companies. This approach is expected to have amazing growth and success in the coming years. So now is a great time to learn about and get involved in IT outsourcing companies. By taking advantage of third-party outsourcing companies your team can include the most skilled workers available. You can join the fortune 500 companies that have made this a key part of the global supply chain.
When to Use An Outsourcing Company
The main purpose of an outsourcing company is simple; to have certain projects and tasks completed by a third-party firm.
If your company is reliant on a few in-house IT professionals, this might limit your scope to only their skills. Your knowledge and schedule may be restricted to those individuals, and thus you might be overly reliant on them.
If you use an outsourcing company to add experienced workers, your knowledge and scope will grow. These professionals are continually being trained and informed on the newest IT solutions, which will benefit you. The advantages of an outsourcing company also include you being paired up with a provider to help your IT strategy meet your business goals.
Once you decide to use outsourcing companies, the next big step is to choose which outsourcing type will work best for your company. Would you benefit most from a top skillset like IT consultant services or process outsourcing like data entry? Whatever the case there is sure to be a selection of outsourcing companies for you.
How to Narrow Your Selection
There are more outsourcing companies to choose from than ever before. This is a great opportunity for North American companies contemplating outsourcing some or all of their software development. They can choose from among firms that are close to home, like onshore outsourcing, or from offshore outsourcing that’s halfway across the globe. They can even choose to have a mixture of these two options.
However, to choose the best outsourcing company option for your business model, it is essential to understand the pros and cons involved with each option. Here are some of the benefits of global outsourcing companies:
- No significant long term contract needed
- No need to relocate
- Streamlines hiring process
- Cheaper labor market
- Shared risks with the outsourcing company
- Global Talent Pool
- Renewed focus
Identify which benefits of outsourcing are most valuable to your business model. Next, decide which tasks will be best to outsource. These steps will help you choose the best third-party outsourcing partner.
Why You Shouldn’t use Outsourcing Companies in the USA
Outsourcing costs mostly revolve around the economic environment in the location of the provider. Therefore, despite other advantages of onshore providers, the cost is considerably higher than for offshore outsourcing companies.
Issues involved with cultural and language barriers will likely be less with an onshore outsourcing provider.
However, there is still the possibility of miscommunications with onshore partners, due to different business practices and technologies.
Small Pool of Experts
Onshore outsourcing providers generally have a smaller range or pool of experts than that of offshoring partners.
That means that the most skilled software developers might not be available with onshore outsourcing.
True, you may be able to find experienced specialists but the search for them can take months. With offshoring software development experts, you’re sure to find a much bigger talent pool immediately.
High Pricing Rates
Onshore development firms have high pricing and labor rates. They can be costly compared to an offshore outsourcing firm. As an example, hourly rates in the United States are between $80 to $250. Companies in Eastern Europe on the other hand can be two to three times lower.
It is good to keep in mind that these costs are typically compared with U.S. tier-one cities. This means rural onshoring can decrease costs by nearly 30 percent. However, it is also likely that the quality of work will be of a lower standard.
The pricing average usually decreases over the years but the differential remains l significant.
Range of Services
Offshoring services will always surpass those of onshoring. The variety and quantity of services provided by offshoring services exceed those of onshore services. This includes having and retaining more designers, engineers, and developers. This will be true no matter how good the onshoring services may be. Top Outsourcing services include:
- cloud consulting and cloud solutions
- digital marketing
- data entry
- consulting services
To Keep in Mind
Even when in the same country, an onshoring organizer’s staff will not have direct or in-person contact with an outsourcing team. This includes oversight of the outsourced staffing members.
Even if a company decides to onshore with a provider in the same country, there can be delays in the development project due to time-zone differences.
What is the Alternative
Eastern Europe has the newest most attractive outsourcing industry in software development, including top resource areas like Minsk Belarus, and Ukraine.
Software companies in places like the United States, Western Europe, and the United Kingdom are often preferred, but these locations are expensive.
Companies in locations like India and the Philippines are more affordable but the quality of services provided is lower. Eastern Europe is a great alternative.
Outsourcing to Eastern Europe brings:
- high-quality services
- affordable pricing
- convenient time zones
- wide talent pool
- skilled employees
- staffing solutions
- strategy consulting
- good communication
Language and cultural barriers are unlikely to be a big issue because Eastern European companies educate their staff well. Eastern European developers and tech specialists are kept abreast of western work practices.
Most of these specialists are fluent in many languages, including English. Most Eastern European software developers are native speakers of German-Romanic languages, which makes English easier to learn, understand, and speak.
Eastern European developers have a creative and problem-solving mindset. This is unique and makes for a better end-product with a business solutions outlook.
They have broad technical education that helps them look for the best possible solution and implement it creatively. This approach will result in a more successful product, rather than just mechanically implementing a client’s solutions.
Eastern European citizens are passionately ingenious when it comes to IT. With each passing year, it is becoming increasingly popular to attain a degree in information technology. A large number of young people want to keep up with the latest trends in technology development and innovation.
An example of one of the top outsourcing companies is TMS. Our Serbian-based outsourcing company has been working globally since 2014. TMS works with a wide range of companies, from startups to large financial institutions.
TMS works with a world-class team of:
- consulting specialists
- software engineers
- project managers
- quality assurance specialists
TMS creates top-tier digital products. Our app development company is focused on your online business’ profitability.
Outlook on IT Outsourcing
Overall, outsourcing of any kind is a great way to improve your company. Offshoring outsourcing has more benefits compared to onshoring.
One of the most evident benefits of outsourcing company services is that staff can focus on other tasks. This improves the value of the business. Software development processes take a lot of time and energy and also require specialized expertise. Delegating software development to a team of professionals helps. It will allow you to meet business goals easier and faster by focusing your efforts.
Hiring an outsourcing company is an affordable way to save time and energy. In-house workers are very valuable, no matter the business. So, how their time is spent will affect the success of a business. Delegating software development to an offshoring provider will make it so that in-house efforts can be directed at essential and more demanding tasks.
Outsourcing companies save time, money, and energy. Using an outsourcing company helps your business to keep up with the competitive market. Outsourcing will ensure your business finds affordable solutions.
If you enjoyed reading this article on IT outsourcing companies in the USA, you should check out this one about IT outsourcing failures.
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