Six reasons why companies choose to outsource

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If there’s one thing that is likely to happen to any tech business, that’s outsourcing. As the years go by, the market of IT specialists expands — crossing and destroying geographical borders. With a huge heap of tech expertise available, why not benefit from it as a business? According to Statista, the net worth of global outsource reached $85.6 billion in 2018 — so far, an absolute maximum. There’s no sign the trend is going away any time soon, so let’s see why outsource IT services and what outsourcing companies will be the best match for you. 


So, why outsource? Outsourcing tech services is a great way to strengthen your business while cutting costs on employee expenses. Most importantly, the outsourcing market creates a wide pool of expertise. So businesses don’t have to worry they lack resources any longer. Whenever you need a part-time UX specialist, or a QA to test your product, you can expect an IT vendor among outsourcing companies to give you the right expertise. 

There’s a misconception that outsourcing is a small-business thing — a helping hand offered by outsourcing companies to those who don’t have enough employees. That’s a huge mistake. To understand that, it’s enough to look into the stats on average hiring time across IT companies: The global time to hire an IT/design employee equals 56 hours. 10 people makes 560 hours. With the help of an outsourcing companies’ services, these hours are not the part of your company’s workload. Isn’t it alone an answer to your why outsource question? 

Take a look at the big market players that use outsourcing: 

  • GitHub: To develop one of their core sharing features, Gist, GitHub outsourced the services of Scott Chancon who eventually became GitHub’s CIO. 
  • BaseCamp: The initial version of BaseCamp, a globally known project management solution, was launched in 2004, quite unsuccessfully. It took the company a major app revamp to start generating revenue — all the changes have been implemented by an outsourced team
  • Slack: Yes, they’ve done it too. Slack outsourced web design and content services at the initial stages of product development. In fact, the huge part of the interface you see in Slack today have been created by outsourced teams. 


Minimizing the hiring time is an important reason why companies choose to outsource IT recruiting. But that’s only a fraction of all benefits. Check out our top 5 list: 

Why outsource #1. Focus on the important stuff

Especially if your firm’s resources are limited, you don’t want to waste time on the operational tasks like IT system maintenance, but rather deal with crucial business growth decisions. Outsourcing gives you space.
If you look into the types of outsourced services, you’ll see that the majority of companies outsource accounting tasks, IT services, and digital marketing — those things they believe are not worth their time. 

Why outsource #2. Avoid hiring specialists you won’t need

For every business there are jobs that are short-term. You may need a UX writer to write interface copy for your app, but unless you’re planning any major updates, you won’t need him/her to be a part of your team in a few months. Cooperating with outsourcing companies helps you find external expertise without making any long-term hiring commitments.

Why outsource #3. World-class expertise readily available

Why outsource? Because the market is thriving and you have to benefit from it! Even if your business can spend heavy financial resources on recruitment, it’s doubtful whether it really needs to recruit. You can tap into global markets, check the most promising outsourcing destinations, engage in a few interviews, and get a pro-level team working on your project for just a fraction of costs thanks to outsourcing companies.

IT Outsourcing by Continent

In other words, if you’re asking yourself why outsource, try to tweak the question and ask yourself why not. 

Why outsource #4. Test the waters

Just as in case with GitHub, a person who has initially been hired via outsourcing companies can become a vital part of your team in the end. Many young startups are often in the dark about the type of expertise they will need to grow their business in the long run. Outsourcing gives them space to experiment with multiple approaches. Importantly, they don’t have to spend a fortune only to understand which core competencies they need and whom to hire in the future. 

Why outsource #5. Let offshore outsourcing companies save your money

If you compare the cost of development globally, you’ll see huge gaps — for example, $25 average hourly rate in Ukraine and Romania versus $50 in Northern America. This is why outsourcing production or service from offshore outsourcing companies makes much sense for many businesses — especially those based in the West. 

Why outsource #6. Make it faster

Your IT vendor will have a vast expertise in providing IT services that you need. Use their knowledge and experience to speed up the tasks your in-house team cannot cover.


For many years, China and India have been the key outsourcing destinations for companies around the world. Today, you would ask yourself “Why outsource there& As the leadership is shifting fast. The countries of Eastern and Central Europe — like Ukraine, Romania, and Poland — are becoming more and more prominent on the market. Why outsource there? Because of the affordable cost of outsourcing in these countries, as well as a solid base of tech expertise. 

Here are a few important points for you to consider before choosing a vendor among outsourcing companies: 

  • Portfolio is better than a business card. Always inquire about IT outsourcing projects the company has been working at. This will help you understand the types of expertise they own and see whyoutsource from them. Also, you can always make a contact to previous clients and ask them about their experience with the provider. 
  • Ensure it has well-established communication practices. The main thing about working with an outsource provider is you have to stay connected — before, during, and after the project completion. Ask whether a team hired for the project speaks your language, set up regular meetings, and inquire what online communication channels are available. 
  • Take part in candidate selection. Whether you have the expertise or not, ensure you’re present at the interviews. This will help you analyze the recruitment approach as well as serve as a huge asset in terms of your further communication with the team. 

Outsourcing is an advantage as long as you have a valid strategy on how you want to grow your company. If you have what it takes, hiring specialists via third-party agencies will save your cost without decreasing production efficiency. So, don’t ask yourself “why outsource.” Ask yourself why you still don’t.

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