22 May Outsourcing vs Insourcing IT: Pros and Cons (2021)
Outsourcing IT is one of the most en vogue techniques companies use to stay on budget. Versus insourcing, outsourcing IT provides cost-effective labor that could be impossible to bench onshore.
Recently there has been a big push to evaluate the pros and cons of insourcing (bringing labor back home) due to a strong economy and a large pool of tech talent that is a byproduct of the millennial generation.
OUTSOURCING VS INSOURCING IT: PROS AND CONS IN THE INDUSTRY:
Outsourcing is a great model allows for a larger value proposition and higher return on investment. Although the return is higher, communication is usually much more difficult compared to insourcing.
- Cost-effective / lower wages and rates
- Allows ability to stay open 24 / 7 more efficiently
- Easily available talent pool with ability to scale to any size
- Workday can be extended to increase productivity and can reduce time to market
- Potential for miscommunication via language barriers
- Higher management costs
- Different time zones can be troubling for direct management
Versus outsourcing, insourcing is a great model in that it gives you the ability to work closely with a geographically close team who work in your time zone and who can communicate smoothly and easily with you.
- Ability to work closely with team members
- Lower cost of management (%)
- Easy and smooth communication
- Ability to physically travel and do business (especially useful when discussing hardware and server maintenance in the IT industry)
- Expensive compared to offshoring
- Often difficult to find the right type of talent at a moment’s notice
- Lower levels of certifications
Get the Guide: “How to Hire an IT Staffing Agency”
As providers of outsourced and insourced IT services, we here at tCognition see a future in both on and offshore development.
We’ve even gone so far as to create an amazing full guide to determine how to hire the correct IT staffing company.
emrs outsourcing companiesPosted at 13:12h, 21 December
Hey there, I really like your blog! I can totally relate to this as I work as a medical assistant for an outsourcing company.