What is IT outsourcing and how can it help your project?

What is IT outsourcing and how can it help your project?

5 min.

Outsourcing of IT teams saves companies’ internal resources and optimises their processes. How is this possible? We have prepared a brief overview of the benefits and specifics of hiring IT specialists.

Many businesses whose IT teams have struggled with staffing shortages have found a solution with the help of a proven outsourcing partner. This popular term refers to hiring a third party to work on projects instead of in-house staff. The work may involve time-consuming services, require expertise, or are not the core business of companies.

Team leaders who were previously overwhelmed with fixing problems associated with late project handovers could now get back to the core of their agenda. And their brands have secured higher-quality services at a lower cost compared to what they could have achieved by finding an employee or freelancer on their own.

4 reasons why you should consider outsourcing

In today’s volatile marketplace, it’s critical to remain flexible, encourage innovation, and address the hurdles associated with running a business at the same time. Outsourcing is gradually coming to focus as a strategic solution to many business-related problems.

1. Budget relief

First and foremost, it is a lifeline for brands struggling with limited finances. When selecting an IT specialist, they set the time for which the outsourcing partner will provide the IT specialist, and they only pay for the actual services delivered on an hourly rate basis. At the same time, they do not have to provide the freelancer with training, benefits, social security, or health insurance, nor do they pay the freelancer’s holidays. If they prefer to work remotely, they also do not pay the freelancer for technical equipment, travel, or meal expenses.

If brands rely on the services of an experienced partner when looking for a freelancer, they significantly reduce their labour costs. The hiring of IT specialists is charged as a service, specifically as an investment cost, and does not enter their wage costs. As a result, they can redirect their capital to activities that support the company’s growth and strategic goals. The outsourcing partner also saves company finances when searching for reinforcement. Building and maintaining a strong internal recruiting team is challenging, which can translate into an increased budget.

2. Speed and flexibility

The 2022 State of Tech Staffing Report found that, on average, 20% of new hires need to be replaced, making investments in them a losing proposition. Therefore, the speed at which an external professional comes on board is critical. With an outsourcing partner, managers and HR professionals don’t have to waste time with a long selection process. On the contrary, they get a qualified candidate without unnecessary waiting and the company management can focus on the key activities of the business. TITANS also provides clients with a pre-selection of suitable specialists from among the large number of IT experts in the database, considering the specific needs of companies. For them, this minimises downtime between the implementation of individual projects and after their completion.

Many companies, especially start-ups, are also attracted by the ability to flexibly manage the size of the IT team according to current needs. CTOs especially appreciate this – 42% of them list it as the biggest benefit of external collaboration.

With an outsourcing partner, managers and HR professionals don't have to waste time with a long selection process.

3. Quality

Another factor that should not be underestimated is the high profile of the outsourcing partner. It pays off to choose a partner that offers only proven and highly qualified IT specialists. At TITANS, for example, if the clients are not satisfied with the performance or quality of the selected expert, we will find a suitable replacement within twenty days.

We also care about maintaining an individual approach. Our consultants attend all job interviews to best understand our clients’ needs and deliver IT specialists that best match their requirements. In addition, we motivate each expert to perform to the best of their abilities through our client satisfaction ratings.

4. Availability of experts

It is often the case that an employer has only a limited pool of available candidates who do not have the required skills and experience. The technology industry is facing a huge talent shortage as more skilled experts are needed in today’s development teams than ever before. This is especially challenging for startups that face fierce competition for top employees. Expertise is a luxury, and outsourcing skilled individuals gives companies a competitive advantage.

TITANS’s database, which brings together a community of carefully selected IT specialists, has expanded to include Czech freelancers from 2021. Currently, the brand has been a leader in the domestic market for over 6 years. Its expert recruitment teams have called up over 30,000 professionals, and we celebrated victory on projects of over 600 satisfied clients in Slovakia and abroad. The clients include respected names such as Zurich Insurance, Sygic, Swiss Re, Erste Group, Accenture, Telekom, O2, Orange, and Siemens.

Outsourcing will soon become the norm

According to an analysis by Statista, the IT outsourcing sector will be worth USD 778 billion by 2028. In times of economic crisis, working with experts can maintain the high quality of a company’s products and services, while relieving the burden on in-house teams. Companies that choose to outsource often get a significant return on their investment. It is therefore essential for management to understand that being cost-effective is not just about cutting costs, but also about creating more efficient teams. In today’s volatile market, this is the key to continued success.

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