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Discussing Common Business Practice When Outsourcing IT Services

Jul 3, 2008
Recently, there have been an increasing number of companies that have determined that they are able to operate their information technology (IT) departments more cost-effectively when they opt for outsourced IT services. IT outsourcing has actually become one of the most discussed and analyzed routes for securing the IT needs of growing businesses in almost every industry. However, the practice of outsourcing these services to offshore companies has also gotten to be a bit of a "hot-potato" political issue, giving rise to a great deal of dissension.

During this highly politicized year, a vast majority of the debates and discussions revolving around various outsourced projects and services have focused heavily on the negative effects to local economies of such business practices. More than ever, companies are being scrutinized and criticized for cutting jobs locally and having those jobs "exported" or handled by companies that are located in countries with a lower standard of living, and which provide their services much less expensively. IT services is one of the major categories of outsourcing services.

Of course, the reason why it is such a major category is because of the greatly increased demand for all levels of information technology resources in global businesses. Those businesses which must rely heavily on their IT departments and the infrastructure of their information technologies are finding that the overhead required to maintain cutting edge IT services for their customers and for their employees eats up a significant portion of their annual operating budgets.

In order to stay competitive with companies that have some or all of their IT services outsourced offshore, many businesses find that they simply must look at outsourcing offshore as well, in order to reduce overhead and stay in the game. And, while there are many consumers who complain about this practice of using offshore outsourcing, at the same time consumers want to get the best deal and pay as little as possible.

This puts companies in a difficult situation of trying to stay competitive in a global market, to be respectful and responsible toward the local communities where they have their domestic facilities located, to deliver good value at a fair price to their customers, and at the same time try to provide profits to their stockholders. It seems, as the debates rage on about this issue, that there is no simple answer. However, the trend seems to be clear and it will no doubt continue, as more and more companies are turning to outsourced IT services in order to have a chance in the marketplace.

One reason why IT services outsourcing is such a large segment of the overall trend in outsourced services is that it is so crucial to business success these days. It is one of the areas where the greatest amount of money can be saved for companies that choose to send these services offshore.

Often software engineers and programmers are some of the most highly paid employees in an organization. If a large segment of that work can be done by someone requiring just a fraction of the salary, then the company can save a significant amount of money.

Outsourced IT services that are offshore tend to provide the best advantage for companies when the outsourced service is something that is behind the scenes, such as programming, rather than with outsourced personnel interacting directly with customers. Many companies have experienced a high level of customer dissatisfaction when they had customer service calls routed to outsourced call centers located in other countries, such as India.
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