IT Outsourcing is the practice of outsource tech services such us, software development, software maintenance, infrastructure solutions, cloud services and others to external providers.
Outsource this services to different locations, regions and parts of the world allows companies to become more efficient and competitive. The world trend pushes big and small companies to focus more on their business and trust external providers the development of their tech department.
Outsourcing providers organize their companies and processes to be more efficient in hiring and training talent, this allows them to provide lower prices and be competitive.
Making effective technical interviews, perform training sessions and educate ta tech team can be very expensive and time consuming. IT outsourcing reduces completly this costs and makes it possible to have a team in weeks.
The team obtained does not need additional training in technology. They are ready to produce technological outcomes thus you will not need to invest time and money on tech training.
You can ask your provider for a bigger team or new profiles at any time. Proviers tend to be ready to provide bigger teams in weeks.
You can save time not only because you will not be itnerviewing or making paperwork with tech employees but also because the team will already have exerperience in similar projects.
It is possible to increase the team size for a defined period of time. So, if you have an important deadline or a special requirement to fill that was not planned before. You can have a bigger team to make it happen.
Thanks to outsourcing, you will have access to a different talent pool. Or one that will not be affordable in other models.
Depending on the distance and timezone difference, you can benefit from the timezone difference and make your development process continue even when you are sleeping.
It is common to clasify IT outsourcing services based on the distance and timezone differece between the client and the tech team.
The teach team and the client are in different and distant locations. This relation can use the timezone difference and different labor rates as an advange. Usualy offshoring consists on a timezone difference of 5 hours or more.
For example, outsourcing from Peru to Frankfurt would be considered as offshoring because the time difference is about 7 hours and both locations are far from each other. However, this difference allows a difference also in the costs of the service making a very competitive option for the client.
The tech team is closer to the client. They can even have planned on site meetings. The team and the client usually have a timezone difference of about two hours and the geographical distance benefits the service given.
For example, New York has almost the same timezone as Peru. So outsourcing between New York and Peru would be named nearshoring, this can also happen with other near locations like Chile or Colombia and Peru.
Also known as "homeshoring", the term applies when the tech team and the client are located in the same country borders. This allows an easier team integration since they share culture, language and probably also some interests.
For example, Kipu Software, from Arequipa Peru, provides tech teams for clients in Lima Peru.
Some companies try to reduce risks and costs by having different teams from different providers using different types of outsouricng.
For example, European companies can have some teams in closer timezones "nearshoring", and have a team in Latin America to make progress when they are sleeping.
Companies migrate most of their entire tech department to IT Outsouricng providers
IT outsourcing most common services include iOS and Android App development, Web development, API development and others.
This post has been also published by our experts in our kipu-software.pe website.