The world is becoming more and more fast-paced.
If you are a business owner, you need to keep up to stay ahead of your competitors.
One way to do so is to digitalize your business.
However, if your current team lacks the competencies needed, then information technology (IT) outsourcing can help fill the gap.
What is IT Outsourcing?
It is the business practice of delegating IT functions to service providers.
This is a cost-reduction strategy that unlocks other benefits and opportunities for your company.
Balancing Reward With Risk
Every business decision has an accompanying risk.
This is why you must do your due diligence. Learn more about your potential outsourcing partner before signing any agreement.
What Does An Outsourcing Company Do?
An outsourcing company provides your business with a wide range of services.
They can help with project management, agile or waterfall software development, staffing, and other tasks required to complete business undertakings.
What Companies Say
Before contracting help, make sure you are partnering with the right company.
Look up what their previous clients have to say.
At Remote Staff, for instance, you can easily read testimonials on our home page.
The Sourcing Decision
You should consider several factors before making an outsourcing decision.
To Outsource or Not to Outsource
As a business owner, ask yourself these questions.
Will outsourcing give you a competitive advantage over your competitors? Do you have a contingency plan in case something unexpected happens? Can an outsourced team provide services that your in-house team cannot?
If you find that outsourcing can provide plenty of benefits to your business, then it’s worth a shot.
Collaborating with an outsourced team is an opportunity for continuous learning.
Your internal staff can then observe the best practices and apply them to your business process moving forward.
Partner with a staffing agency that has a proven track record.
Remote Staff, for example, has been in the business for 15 years. The company has also created a unique recruitment process to ensure customer satisfaction.
The Case for Selective Outsourcing
As a client, you can choose which IT functions to outsource.
However, you must know enough about the ins and outs of the projects so you are not blindsided by unexpected costs or delays.
Who Uses Outsourcing?
Many companies (and yes, including giant corporations) are outsourcing.
Apart from cost reduction, outsourcing is a great strategy because it allows the core management team to focus on critical business functions.
Not to mention, with the global labor shortage, you get to access world-class talent at a more affordable cost.
What Are the Types of IT Outsourcing?
There are various types—and the one you should get depends on your company’s IT needs:
Offshore outsourcing means receiving assistance from a company in a different geographical region. This type of outsourcing has several advantages.
One is cost-effectiveness. When you outsource to another country, like the Philippines, you get your money’s worth without sacrificing quality.
You gain access to top talent at a fraction of the cost—all because of the country’s lower costs of living.
The time zone difference can also be beneficial because it enables you to extend your business’s operating hours.
As the name suggests, nearshore outsourcing is when you outsource to a location—like a neighboring country—close to your business.
Nearshoring can make overseeing projects and tasks easier because there shouldn’t be too much of a difference in culture.
Onshore outsourcing means contracting help from companies within the same locality.
This method can be time-efficient since it eliminates the need for travel. Plus, you and your vendor are within the same timezone, making real-time communication easier.
Through this approach, you outsource various IT functions to several service providers.
Multisourcing can be great if there’s a need for flexibility and mitigation of risks in case of supply disruptions.
Common IT Outsourcing Models
Another aspect to consider when outsourcing is which model to adapt.
Here are some examples;
In this outsourcing model, you entrust product development or short-term projects to a service provider from start to finish.
However, it’s critical that your specifications and other requirements are well-documented throughout the entire process.
Dedicated Team Model
Your service provider will assemble a team that will be assigned solely to your project.
This team may be composed of various IT specialists—all of which will depend on your business needs.
Outstaffing can be confusing because it can seem similar to other outsourcing models.
But in this case, it’s the outsourcing company—like Remote Staff—that manages the IT expert.
The out-staff model is beneficial because you don’t have to worry about timekeeping and payroll. Your outsourcing partner will take care of all of that for you.
Even a solid IT team can lack specific expertise. In this case, staff augmentation is the way to go.
It’s a more economical solution, especially if you only need to fill in the gaps just once.
Dedicated Development Center
This is an IT model that fully outsources the development, support, and maintenance to a service provider.
All of the IT professionals working on your project are in one location and are managed by the outsourcing company of your choice.
Why You Should Use IT Outsourcing
Still in doubt whether you should outsource your IT operations or not? Well, here are the multiple benefits of outsourcing:
You Are a Domain Expert With Idea
Think you have a one-of-a-kind business idea?
With today’s marketing landscape, you’ll need professionals to develop and maintain your website or even create an app to bring your vision to life.
Outsourcing can help you get the results you need much more quickly.
You Have An Early-Stage Startup
A considerable amount of capital is needed to start any business.
It’s even more challenging for startups that have limited resources.
However, outsourcing is a great workaround for your company’s IT needs, especially if your business is just starting.
You Need Technical Support
Even an established IT infrastructure in a data center will require maintenance from time to time.
Continuous improvements may be needed.
When outsourcing IT services, you save time and money compared to recruiting and onboarding an internal staff.
As previously mentioned, you cut your costs when outsourcing.
There are also various regions from where you can hire IT experts.
However, the Philippines is a prime location because of the citizens’ strong work ethic and proficiency in the English language.
Access to Talent Pool
Sometimes, it can be hard to find the right candidate in your local area.
Besides, large conglomerates will often swoop in and snatch the top talent available.
Outsourcing widens your company’s scope for recruitment and allows you to hire experts from other parts of the world.
Significant Time Savings
It takes time and money to fill in any vacant position.
After all, recruitment is a lengthy process—from sourcing candidates up to onboarding.
You will save time when you outsource, and you won’t have to constantly repeat the process when your employee quits.
Ability to Upscale Fast
Expanding your business may be one of your long-term goals, and outsourcing can help you achieve that.
You can delegate tasks to outsourced IT services for a quick turnaround.
Staying ahead of the game like so grants you an advantage over your competitors.
You won’t have to worry about work interruptions when hiring IT professionals through a staffing agency like Remote Staff.
These experts already know what to do, so there’s no need for extensive training from your end.
Once you’re done with onboarding, they’re good to go.
To Access Skills That Are Unavailable Locally
Specific skills may be hard to find in your country’s local talent pool.
If so, you can tap an outsourcing company for assistance. The right person for that position may be in a different part of the globe.
To Better Use Internal Resources
Your internal staff can get overwhelmed with tasks as your business expands, leading to burnout and even causing several workers to quit.
Outsourcing can help take the pressure off your in-house employees.
Further, you can strategically utilize your internal workforce for more pressing matters.
To Accelerate Business Processes
Outsourcing means more helping hands, which helps speed things up.
You won’t have to wait for months on end for the right person to fill in the gap. Instead, work can resume within weeks when you partner with an outsourcing company.
Most staffing agencies already have a database of applicants awaiting deployment.
For instance, at Remote Staff, we can give you a shortlist of candidates within days.
This is why you don’t have to wait that long for an IT professional to start working with you.
If your job requirements are more specific and no one in our database currently has those skills, we go out and look for candidates who do.
Of course, you may have security concerns when outsourcing.
However, we can implement a non-disclosure agreement between you and your remote contractor as a safeguard. Remote Staff also has an internal IT team in place to ensure your data security and privacy.
At Remote Staff, we also employ a timekeeping and monitoring tool for transparency- while giving you peace of mind.
Wide Set of Technologies to Choose From
There’s no one exact way to do things.
So, you can choose from a wide range of technologies for your company’s digital transformation.
Once you’ve settled on the type of approach, you can then partner with Remote Staff to find a qualified applicant for the job.
The Disadvantages of Outsourcing
As with anything, outsourcing has its fair share of drawbacks.
However, these challenges also have solutions:
Service providers will often be in a different time zone since they typically live on a different continent.
Instead of seeing this as a limitation, you can use the time difference to your advantage.
Your company can then offer 24 hours of customer service if your outsourced staff has a shift opposite to your time zone. This gives you an edge over your competitors who only hire local talent.
Language Barriers and Communication Issues
Yes, linguistic barriers can be a problem with outsourced talent- but not in the Philippines.
After all, much of the population already speaks English quite well.
Different Work Habits
Understandably, there may be cultural differences between you and your remote talents from the Philippines.
As a business owner, however, you can overcome this issue by establishing expectations from the get-go and communicating openly and regularly.
While the distance between you and your outsourced staff can be worrying, it shouldn’t pose too much of a problem. (Unless there’s truly a need for you to travel.)
Thus, you should only work with an outsourcing company that’s already proven and tested. This makes it easier for you to trust that your projects and business needs are well taken care of.
Selecting The Reliable Vendor
Outsourcing your IT staff to the wrong people can be costly and time-consuming. So out of all the outsourcing companies, which one should you choose?
With more than 15 years of experience, Remote Staff is a great option for your IT staffing requirements. Our team of IT experts ensures up-to-date solutions for your business needs.
Most IT professionals process sensitive data for your business. Thus, there’s a risk of a breach due to negligence or cyberattacks.
To protect your data, Remote Staff implements clear non-disclosure agreements and policies. Also, our expert IT professionals are well-trained to secure your data from any cyber threats.
Product’s Quality Control
Some of your IT products need to be inspected by trained IT professionals for possible bugs or glitches.
They can save you time and money in the long run as they can detect issues early on and fix them quickly. It can also help reduce IT maintenance costs and increase product reliability.
But not all IT staff are trained to carry out quality control procedures.
With our extensive experience in the industry, Remote Staff can match you with the right IT professionals to ensure that your products will run as smoothly as possible.
Instead of hiring in-house IT specialists, you can outsource top IT talent and thus gain access to specialized skills at a fraction of the cost.
Here are the most common IT outsourcing services:
Software And Services Related To IT Outsourcing Services
Depending on the software you use and your business goals, you can outsource the following IT services:
- Application Development
- Web Development
- Database Management
- Network Management and Monitoring
- Cybersecurity Services
- Software Testing and QA
- Help Desk and Technical Support
Do’s/Don’ts Of IT Outsourcing In the Software Development Process
Some find it hard to collaborate when outsourcing their software development process. Here are some do’s and don’ts to make things easier for both parties.
First, you should clearly define your intention and requirements to save time and avoid any misunderstandings later on.
Second, make sure there is regular communication. Communicate your expectations, updates, and feedback.
Lastly, document all the requirements, processes, and codes for long-term maintenance and collaboration.
The Tips On Cooperation Enhancement
Collaborating online can be challenging, especially for first-timers. Fortunately, there are ways to shorten the learning curve with your outsourced IT staff.
Analyze The Market Situation And Business Needs
Veteran outsourcing agencies like Remote Staff analyze your business needs so that they can provide the best IT staff for you.
Look Thoroughly For An Outsourcing Partner And Interview Them
Before outsourcing your IT staff, you should research the reliability and track record of the agency you’re eyeing a partnership with.
Afterwards, you should also interview the shortlisted candidates to make sure that they fit your specifications.
Sign An NDA To Maintain Your Concept of Security
Some of your outsourced IT staff might handle proprietary data like programs, coding, and unreleased applications in progress.
Always have your outsourced staff sign an NDA to maintain the confidentiality of your concepts and digital assets.
Plan Your Cooperation And Aim For A Continuous One
When you outsource your IT professional, make sure to designate their specific responsibilities from the get-go.
Plan what they need to do. What time should they be online? What data can they have access to? Will they be working part-time or full-time?
You can even go as far as assigning continuous collaboration.
For example, post-development tasks like system maintenance are suitable for your outsourced IT staff if they were already involved in the development phase.
IT Outsourcing Statistical Survey
According to statistics, global outsourcing was valued at $620.381 billion in 2020 and is expected to reach $904.948 billion by 2027.
The IT industry encompasses a huge chunk of that projection because businesses can leverage external IT expertise at a fraction of the cost.
So, you see, it’s common practice! Remote Staff can help you with your IT needs so that you can focus on growing your business even further.
About Remote Staff
Remote Staff is one of the pioneers in the outsourcing industry with over 15 years of experience matching the best Filipino IT professionals to foreign companies.
Aside from finding people who match your talent requirements, we also conduct a personality assessment test to ensure that your chosen candidate can work together with your IT staff for the long term.
What Is Working With Remote Staff Like?
Our support doesn’t stop after the hiring process. We’ll continue to provide you with all the guidance and assistance you need to maintain a harmonious working relationship with your chosen candidate.
Cooperation Models Remote Staff Support
Aside from providing the talent, Remote Staff will provide the tracking software to help you monitor your IT staff’s productivity.
Also, no need to worry about payroll processing because we’ll handle the salary for your Filipino remote staff, along with the compliance for their mandatory benefits.
Why Choose Remote Staff?
So how is Remote Staff different from other agencies? For starters, Remote Staff already has a reliable track record in the outsourcing industry.
Remote Staff — Your Reliable Partner In IT Outsourcing
When you work with us, you get additional benefits like access to tracking software and payroll management. You can also tap into our database of highly qualified Filipino IT professionals for your business needs.
Remote Staff’s Approach to IT Service Delivery
Remote Staff has a proven approach when it comes to delivering IT services for your business needs.
Flexible Pricing Options
Depending on your IT requirements, you can consider flexible pricing options, such as going for part-time or full-time IT staff.
Ensured IT Cost Reduction
Compared to hiring in-house staff, outsourcing your IT requirements is more affordable, especially for SMEs. Save money and reallocate it to other business activities, like expansion plans.
With Remote Staff, you can hire part-time or full-time remote workers who can work in your timezone.
You can also hire multiple IT staff if you need round-the-clock system monitoring and maintenance.
Quarterly Service Improvements
Our expert IT professionals can help you identify areas of improvement, as well as recommend updates and any necessary upgrades.
Our IT staff will ensure that all data is secure and compliant with all the necessary regulations. They will also regularly review and update policies and procedures to ensure these are in line with the latest regulations.
You can set KPIs to track your IT staff’s performance, particularly to check how they are meeting their goals and objectives.
IT Outsourcing Cost
The average salary of an IT staff in the US is around $97,430 annually. Some SMEs simply can’t afford to pay those wages. That’s why they outsource IT professionals instead.
IT outsourcing costs differ depending on the role and the expertise. Here are some of the average monthly costs:
- IT Help Desk Specialists: $400 – $900
- System Networking and Administration Roles: $400 – $1600
- Software QA Testers: $450 – $1100
- Software Developers: $500 – $4450
With Remote Staff, the service fee already includes payroll management, time-tracking software, and continuous support.
Time Differences Between The US And the Philippines
The time difference between the Philippines and the US varies depending on which state you’re in. The Philippines has one timezone (GMT +8) while the US has multiple.
|Time Difference between PH (GMT+8)|
|Eastern Daylight Time (GMT-4)||– 12 hours|
|Central Daylight Time (GMT-5)||– 13 hours|
|Mountain Daylight Time (GMT-6)||– 14 hours|
|Pacific Daylight Time (GMT-7)||– 15 hours|
|Alaska Daylight Time (GMT-8)||– 16 hours|
|Hawaii-Aleutian Standard Time (GMT-10)||– 18 hours|
(If applicable, adjust the time difference by an hour during daylight savings.)
Depending on your needs, your IT staff can work the night shift in the Philippines to accommodate your regular operating hours.
Future Of IT Outsourcing: Disruptive Technologies
The field of IT is growing rapidly.
With the rise of AI, faster internet connection speeds, blockchain technology, and more, who knows what disruptive technology will be launched in the coming years?
When To Turn To The IT Outsourcing
If you want to save some money while preparing for the next big disruption, you can turn to outsourcing.
It is a cost-effective way of gaining access to the latest technology and expertise.
When choosing an outsourcing partner, go for a company with a proven track record. One that shares the same values as you, and has proven to be both reliable and trustworthy.
Remote Staff is your best partner for your IT needs. Just request a callback and let’s discuss how we’ll grow your business in the long run – together.
Frequently Asked Questions
Got questions before outsourcing your IT personnel? Here are our answers:
Is This System Truly Strategic?
Outsourcing is definitely an effective strategy to hire world-class IT talents at a fraction of the cost. It allows companies to focus on their core competencies while still gaining access to the latest technology.
Are We Certain That Your IT Requirements Won’t Change?
As a company that believes in innovation, Remote Staff might upgrade its systems in the future, which can require changes in IT requirements
In addition, your company might also implement upgrades to your IT systems to adapt to the latest technologies (like automation, for instance).
But rest assured, we will provide the necessary support to ease the transition to new systems.
Even If A System Is A Commodity, Can IT Be Broken Off?
Not all systems that support company functions can be broken down because it’s interconnected with other business processes.
For example, inventory management systems are not only connected to the warehouse that holds the inventory. It’s also tied in with the sales website, logistics, and more.
That’s why your outsourced IT staff needs to understand the system flow and have access to other business processes as well.
But worry not, we can hop on a discovery call to assess the tasks and determine the authorized access needed.
Do We Have The Knowledge To Outsource An Unfamiliar Or Emerging Technology?
If you have problems adapting to new technologies, our expert IT professionals can help seamlessly integrate these into your core business.
What Pitfalls Should We Be On The Lookout For When Hammering Out The Details Of A Contract?
Before you enter into a contract with an agency, you should watch out for the following pitfalls:
- Ambiguous language
- Intellectual property ownership
- Unclear scope of work
- Non-disclosure agreements
- Payment terms
- Termination clause
Remote Staff also ensures that our contracts are clear and specific. Should you have any questions or additional requirements, we’ll gladly go over these with you.
How Can You Design A Contract That Minimizes Your Risks And Maximizes Your Control And Flexibility?
When entering into a contract with an outsourcing agency, you must be clear about the goals and tasks you want to outsource.
Is it to create a more reliable website? Or to prevent system malfunctions?
Always have your agreement in writing. And if possible, include measurable KPIs to ensure your team’s progress.
When you outsource your IT needs to Remote Staff, we will lay out an agreement that specifies both parties’ rights and responsibilities—with clear objectives, timelines, and costs.
Why Should You Outsource to the Philippines?
Outsourcing to Filipinos can be very beneficial for several reasons.
For one, Filipino speak English fluently, which leads to easier communication. Additionally, the cost of labor in the Philippines is significantly lower compared to other countries, making it a more economical choice.
Moreover, Filipinos are known for their strong work ethic, hospitality, and dedication, which makes them a valuable asset to any team.
How Do You Know Whether Your IT Costs May Be Reduced?
Several factors come into play when assessing IT costs.
With our expert IT professionals, you can get valuable insights and analysis on areas where you can save.
We can also help you identify the best technology vendors and resources that will provide the most cost-effective solutions for your business.
Doesn’t IT Outsourcing Pose A Threat To Corporate Data Security?
There are inherent threats when you outsource your IT staff. Your data might be stolen because of a security breach or negligence, for instance.
To guard against these, Remote Staff has non-disclosure agreements in place for your outsourced IT staff. Also, our expert IT professionals are on hand to safeguard your systems from possible cyber attacks.
Can An IT Outsourcing Vendor Guarantee Against Premature Service Termination?
Sometimes, disagreements can occur between service providers and their clients. Thus, we can’t guarantee against premature service termination, especially if there’s a breach in the contract involved.
However, Remote Staff will exhaust all possible solutions to keep the project moving forward.
How To Get All From The Benefits Of IT Outsourcing?
To maximize IT outsourcing, you must be clear about your objectives and work with a reliable outsourcing agency.
With Remote Staff, we have IT experts who will work seamlessly with your team to set up, maintain, and optimize your IT processes to achieve your business goals.
What are the Vital Pros of Outsourcing Collaboration?
Outsourcing has a lot of benefits! If you outsource with a reliable agency like Remote Staff, you can hire expert IT professionals at affordable rates.
This way, you can reallocate your resources to other strategic areas of your business—while ensuring your IT systems are operating properly.
So if you’re ready to outsource your IT staff and take your company to the next level, request a callback today so that we can start providing tailored solutions for your business.
Herschel Lili has years of professional writing experience. She enjoys reading anything under the sun, but in recent years, she has turned her attention to books that leave her feeling profound. At present, she looks forward to learning everything she can about remote working and sharing the knowledge through succinct write-ups.