In-house vs. outsourced IT-specialists?

Updated: 14.11.2017
In-house vs. outsourced IT-specialists?

Why outsourcing company is more effective than In-house IT-specialists 

There are situations when in-house specialists spend most of their time awaiting requests or they cannot get their work done due to equipment breakdown (which happens less often). This may be called idle time in IT.

Idle time is a temporary suspension of works. Companies pay for idle time of in-house IT-specialists. But it may have a negative impact on the company economics as a whole.

There exist several options, how an In-house IT-specialist may use his idle time with a small but profit: to deal with organizational matters, to independently undergo additional training etc. But the longer the idle time, the more expensive technical specialists become for the company.

An outsourcing company flexibly manages idle time of its employees and promptly redeploys such unoccupied specialists to other projects. Appropriate tools help do this job effectively. 

Managing IT-services

An In-house IT-specialist and an outsourcer have much in common: both may have similar education and experience, do the same things, get paid almost equally. But it is commonly believed that working with outsourcers is unprofitable, it is more expensive.

Far from it.  To maintain a staff of IT-specialists is in fact more expensive than to use outsourcers’ services. Outsourcing companies can effectively manage IT-services:

  • allocate only specialists with relevant skills for the projects;
  • define the right amount of specialists for each project, avoid inflating a working group.

How to assess the situation on your own

If you are a business-owner and your company uses ERP system 1C or Microsoft Dynamics AX, Dynamics 365 For Operations or NAV you have probably faced such situations: there are not enough tasks for IT-department or, on the contrary, technical department fails to process incoming requests, IT-projects are finished behind schedule, that's why users are dissatisfied and so on. You start dealing with the situation and everything comes down to IT-department requiring additional resources for engagement of several full-time specialists or for purchasing equipment, for instance.

First, we recommend business owners in such situations to analyse and assess the situation on their own:

  • at least roughly assess the technical department requirements and compare them with offers of outsourcing companies;
  • make sure to take into account such indicators as: speed of service provision, cost and quality of service delivery (both for own IT-department and for outsourcers);
  • ask an outsourcing company to confirm each of the above points. Serious companies shall without any problem overturn your fears and provide specific evidences. You shall only make the final decision.   

For example, a manufacturing company has a critical situation: its own IT-department fails to process current users’ requests on corporate ERP system errors. Additionally, IT-department has strategic priorities: to organize transfer from the current system version to a new one, to further develop the system and to teach updates to the employees. It seems to the management that IT-department wastes time solving some other, not the most important tasks. The company’s efficiency decreases; the situation within the company is heating. The management is not satisfied with such state of affairs and wants to get an action plan from the IT-department. Eventually, the conclusion is that it is necessary to employ several more consultants and developers.

It should seem reasonable: if one lacks resources – one should attract such. But the chosen way is not the only one. Besides, the company management failed to take into consideration that search of specialists with relevant skills will take time and additional costs (up to providing new employees with all necessary equipment).

Employing an outsourcing company, the business will save the budget, get high quality work and meet the deadlines. Besides, there will be no need to worry about the tasks for overtaken staff after the project implementation. 

 

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