What is IT outsourcing and what are the primary advantages for your business?

Categories: Business and Companies /

Rimpa Mondal

  • 14 Feb,2023

What is IT outsourcing and what are the primary advantages for your business?

IT operations and development outsourcing has been a hot topic for many years. Scalability, more reliable disaster recovery, simpler access to subject matter experts, lower expenses, and the opportunity to concentrate resources on core company development are all common benefits of IT outsourcing.

Outsourcing, however, also brings about a more complicated delivery model, security and privacy risks, decreased visibility, a loss of overall control over the IT infrastructure, and makes it more challenging to match IT deliverables to business requirements.

The fundamental ideas, benefits, and drawbacks of embracing IT outsourcing are presented in this article, along with how Codepilot can assist your business in achieving its strategic goals during times of global crisis.


IT Outsourcing: What Is It?

IT outsourcing, is the utilization of outside service providers to successfully supply infrastructure, application service, and business process solutions.

Outsourcing, which also includes utility services, software as a service, and cloud-enabled outsourcing, aids clients in creating the best sourcing strategies and visions, choosing the best IT service providers, drafting the best contracts, and governing transactions to create long-lasting, win-win relationships with outside suppliers.

By outsourcing, businesses can cut costs, hasten time to market, and benefit from outside experience, resources, and/or intellectual property.


The current state of global IT outsourcing

Increasing numbers of people are working remotely as a form of social isolation amid the COVID-19 pandemic. It is helping to control the new coronavirus on a daily basis, led by business in response to calls from the World Health Organization.

Employees working from home present issues for European businesses. As a result of the majority of their workers having to work from home, they are now dealing with tasks they wished they had automated earlier. Many European businesses will be influenced by these situations when considering whether to open up to digitizing and automating their business processes. The bar for outsourcing will come down as a result. Therefore, over time, European businesses might be increasingly prone to outsource their IT.

Outsourcing for projects

Also known as nearshoring, offshoring, and software development outsourcing, among other names. In this instance, the corporation hands over all project-related data to the outside outsourcing company, which handles all software development, quality control, and project management.


Out Staffing 

Out Staffing and Body Leasing are related terms. If a corporation uses the outstaffing model, it purchases the time of its employees from an IT outsourcing company. Usually, a business will pay on an hourly or monthly basis.


Opening of an R&D facility

Likewise called an offshore office. Some businesses establish a research and development office abroad (often using the same brand name) and employ locals to work there.


Advantages of outsourcing IT

Numerous factors influence why businesses outsource particular business functions. And a few of the most typical causes are as follows:

  • Enhancing the business's focus
  • Access to top-notch abilities
  • Reducing and managing operating costs
  • Increasing the effectiveness of time-consuming tasks
  • Sharing risks with the joint venture
  • Expanding the utilization of outside resources

The main benefits of IT Outsourcing are:


Offshoring Reduces Costs

When you outsource, costs are more stable. For instance, if you utilize a hosted server, you can fix your monthly expenses at some pre-set numbers. Apart from predetermined sums, there are no equipment charges or maintenance costs.



The most common justification for contracting out any project is to have access to specialized knowledge and experience that current workers might not be able to provide. The best part is that you don't have to pay for your IT staff member's training. The outsourcing firm is the one who instructs your personnel in the most recent methods and software.

Global Resource Access

Businesses can service clients in several time zones throughout the day without the need for office space, employee availability, or even a common language thanks to the assistance of a large number of outsourcing providers.



Savings from outsourcing can be very significant. According to studies, outsourcing email handling only would result in significant savings for more than 80% of organizations with fewer employees. IT businesses can provide access to services and equipment at significantly cheaper costs than your company might have to pay to acquire it on its own.


Hire Codepilot Technologies for IT Projects

Codepilot Technologies has a team of experienced IT professionals who are well-versed in the latest technologies and have a track record of delivering successful projects.

Outsourcing to Codepilot Technologies can be a cost-effective solution for businesses, as it eliminates the need to hire and train in-house IT staff, and reduces the cost of purchasing expensive technology.

Overall, outsourcing IT projects to Codepilot Technologies can provide businesses with the expertise, technology, and cost-effectiveness they need to take their operations to the next level.