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Your Guide to Outsourcing IT Processes

Your Guide to Information Technology (IT) Outsourcing

If you have never enjoyed the benefits of outsourcing, it may be a bit overwhelming to know where to begin and how business process outsourcing (BPO) works. That’s why our experts have created this Beginner’s Guide to Information Technology (IT) Outsourcing to walk you through the basics.

BPO is becoming increasingly popular, yet some organizations hesitate to outsource. For some it is uncertainty about the accuracy of their strategic planning analysis of current operations; for others, it may simply be a fear of the unknown.

The bottom line? Now is the time to find out about the ways information outsourcing can boost your company’s success.

What is Information Technology (IT) Outsourcing?

Information technology (IT) outsourcing is defined as the organizational practice of hiring a third-party firm to take over all aspects of accomplishing specific projects or functions, replacing or enhancing the company’s in-house IT activities.

How IT Outsourcing Works

A firm like RAINBOW SOFTECH™ can act as your IT department, taking over all the processes of an in-house department and functioning as if they were just down the hall.

An IT outsourcing BPO can also assist your IT department by taking on the more routine, time-consuming tasks – freeing your in-house IT personnel to concentrate on innovation and supporting strategic initiatives.

Hiring Freelancers Doesn't Count

If you use the services of freelancer workers, are you already outsourcing? No. 

These are simply workers on your team with different designations from your regular employees, but you still must manage their work. What is more – they usually work remotely so it is harder to monitor their activity, measure their productivity, and trust that they are following data security guidelines.

True outsourcing means the BPO vendor does all of the management and administration required to complete your deliverables including personnel management, training, and providing workspace and equipment. 

This means that if someone is on holiday or calls off due to illness, it is the vendor’s challenge – not yours – to get the work done properly and on time.

Summary of This Article - Beginner's Guide to IT & Administrative Outsourcing

  • Find out what you may be missing out on – don’t put off exploring your outsourcing options
  • Let a BPO handle routine processes so you and your team can focus on growth
  • Hiring freelancers is NOT outsourcing – you still have the challenges of managing them
  • Benefits of IT outsourcing include cost savings and freedom to pursue growth initiatives
  • Comprehensive BPO companies offer a full range of services
  • The implementation of your outsourcing process should not be painful
  • Experienced BPOs can lead you through the transition with minimal disruption
  • To find the best BPO for your needs, look for a vendor with proven reliability, quality, and trust

Why You Should Consider Information Technology (IT) Outsourcing

Rather than using your experienced, internal workforce, let a BPO company handle routine administrative processes. This provides greater flexibility and a more stable workforce, so you can focus your in-house team on strategic growth initiatives.

Cost Savings from Information Technology (IT) Outsourcing

Most of our client organizations operate in expensive labor markets like the U.K., Australia, and North America. The cost of living is much lower in India so we can pay our workforce well, but at a much lower cost.

IT Outsourcing Reduces the Impact of HR & Staffing Issues

As you well know, employing a workforce is more than signing checks on payday. We have listed some common activities related to keeping routine processes in-house that drain resources. 

The good news – handing over routine business processes to an IT outsourcing vendor means they take on these burdens:

  • Benefits and perks so you are competitive when recruiting
  • Hiring/onboarding/training employees to do the work
  • Reacting to staffing shortages
  • Monitoring performance, providing rewards or discipline
  • Terminating ineffective employees 
  • Starting the process over again  to hire replacements
  •  Workspace and, perhaps, parking space for your team when they are working
  • Equipment – desk, chair, computer, and other accessories
  • Power, water, heating/cooling, and high-speed internet for the work area

Does IT Outsourcing Replace Existing Staff?

The answer is up to you:

  • If you experience challenges finding workers, you can replace them with a contracted outsourcing firm
  • If your existing employees are overwhelmed with a growing workload, outsource some of the work temporarily or permanently
  • If you plan to open a new location or division, outsource the routine tasks and use your in-house team to lead, train, and support the new initiative. 

There are many other scenarios for companies who outsource. No matter the option you choose, your existing staff can be more productive by taking a thoughtful approach to selecting the processes you will outsource and the vendor to do the work.

About BPO Vendors That Provide IT Outsourcing

What are BPOs? The term BPO refers generally to the activity of outsourcing your routine business processes,  but it is also used as an abbreviation for a company that provides BPO services.

Typical Processes Taken Over by IT Outsourcing BPOs

Most routine functions can be successfully outsourced, and comprehensive BPOs like RAINBOW SOFTECH™ offer a single source for outsourcing information technology as well as general administrative processes. Here are some examples:

All BPO Companies Are NOT the Same

Some BPOs specialize in a particular industry, and others only offer general administrative services. You should consider hiring a firm that offers both.

For example, you may only want to outsource medical billing, but a full-service firm that provides medical back-office services – as well as typical business processes – may be the smart choice. If you later decide that you need virtual assistants for your executives or sales lead generation, you will already have a BPO partner you trust.

It is also a good idea to select a firm that provides business data analytics consulting in case you need complex data extraction and reporting in the future. These consultations may be short-term, standalone projects, or ongoing service – depending on your needs.

India requires BPOs to be licensed, and top-quality BPO firms meet and exceed the government’s high legal and ethical licensing standards. The bottom line – choose an outsourcing firm that offers quality, security, trust, experience, and reliability.

The Switch to Outsourcing Should Be Almost Painless

Begin making your transition plan now – start small with just one or two departments. You should avoid turning your entire operation upside down and disrupting your ability to continue providing the quality goods and services your customers expect.

When you consider the processes you want to outsource, focus on cutting processes – not costs. Streamline your operation and the financial reward will follow.

A high-quality outsourcing company will walk you through each step of the process and tailor the implementation plan so your customers do not notice the change. Make sure the firm you select is fully flexible with implementation and with the length and details of your contract.

How to Know if Information Technology (IT) Outsourcing is Right for Your Organization

To make an informed decision, you need an analysis of your current business operations to compare with the efficiency and cost-saving you can achieve through outsourcing. This analysis must be accurate, reliable, and complete if you are to maximize the benefits of hiring a BPO.

If you have the necessary reports to make an educated decision, we applaud you! But if you are like most organizational leaders, you may not be sure you can accept your routine business reports as a complete and accurate reflection of your operation.

As a BPO industry leader, At RAINBOW SOFTECH™ offers a short-term contract for business analytics consulting services to help you collect good decision-support data and decide if outsourcing is right for you. We have been in the business a long time, and we are ready to share our expertise to help you realize your organizational goals.


How can we help you get started?

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Beginner’s Guide to Information Technology (IT) Outsourcing