Glossary What is IT Outsourcing?
By null / 1 Jan 2024 / Topics: Managed services Modern infrastructure Cloud Software
By null / 1 Jan 2024 / Topics: Managed services Modern infrastructure Cloud Software
IT outsourcing is when an organization selects a third-party vendor or service provider to handle part or all of an organization's IT needs. IT outsourcing can include: IT business processes, application services and infrastructure solutions. Outsourcing can provide benefits such as cost reduction, faster time to market and access to external expertise.
Onshore outsourcing: Hiring specialists in the same country. The benefits of onshore outsourcing are for businesses that require face-to-face communication and collaboration, making coordination and management of the project outsourcing easier.
Nearshore outsourcing: Outsourcing to neighboring countries or countries within the same region. Benefits of nearshore outsourcing are when businesses that require similar time zones and cultural similarities. Often, with nearshore outsourcing organizations get a balance of cost savings compared to onshore outsourcing, while still having a high level of control and management, compared to offshore outsourcing.
Offshore outsourcing: When a business outsources IT services to a company in another country, often chosen for cost savings from lower labor and operational costs. While there are often significant cost benefits, challenges to offshore outsourcing include language barriers, cultural differences and lack of control or visibility over the project.