Life as a service or why outsourcing is the norm

Over the past decade, the practice of outsourcing has become increasingly common. Firstly, many enterprises no longer require a large dedicated software development team – work processes are automated, the number of offices is reduced, and so on. Secondly, companies are increasingly using innovative technologies that require highly specialized and expensive specialists, who cannot always get on their staff.

Moreover, outsourcing has provided top managers with the opportunity to choose specialists in the international market, reducing the company’s personnel costs. Thus, according to experts, 46% of companies named the main reason for using outsourcing to reduce operating costs, and 12% – entered the international recruiting arena.

What is outsourcing?

Outsourcing is a business practice in which services or job responsibilities are outsourced to a third party.

Today, almost any task can be outsourced. The most common request for third-party services is customer service at a service desk. Companies can also outsource other types of work, including manufacturing processes, human resources, and finance tasks such as accounting and payroll.

Outsourcing is not limited by the number of transferred operations. So, some companies outsource entire departments or even divisions.

IT outsourcing gained particular popularity during the period of forced remote work since IT specialists are needed to implement it and then maintain it. Here we are talking about both classical technical support and outsourcing of computer equipment maintenance, and outsourcing of IT security or data storage and processing services. In this regard, the demand for IT specialists has significantly increased, which has affected the cost of their services. Compared to the traditional search for IT specialists, outsourcing allows you to optimize recruitment costs, reduce search time, and also get the best experts, who would be expensive to hire full-time: https://peiko.space/

Main types of IT outsourcing

Traditionally, outsourced IT functions fall into two categories: infrastructure outsourcing and application outsourcing.

Infrastructure outsourcing includes the ability to provide a help desk, data center, information security, or general infrastructure management.

Application outsourcing refers to both the development of new applications and the maintenance of existing ones, testing and monitoring services, as well as software implementation and management.

The most common outsourced IT services are:

-Infrastructure as a service and Platform as a Service (in the case of Tet, for example, this is IaaS Tet Cloud);

-Web development;

-ensuring information security (for example, Security Operations Center – that is, a full cycle of IT security services or individual services, for example, monitoring;

-providing computing power.

-hosting;

– development of software and applications; maintenance or management of the website/application;

-technical support;

Why do companies need to outsource?

The main advantage of outsourcing is the reduction of capital expenditures (CapEx) and the transition to a more advanced OpEx IT investment model. The classic CapEx model implies significant costs for the purchase of a large amount of own equipment, as well as hiring qualified specialists who will service it. At the same time, the option with outsourcing capacities and personnel does not require large and one-time investments, it is easier to purchase and easier to maintain. In addition, the service provider has the latest, and therefore the most secure software licenses and has extensive experience in “hardware care”.