How do you know when and what to outsource? After all, 31% of IT services were outsourced in 2016, and it’s projected to be an upward trend.
When to outsource your IT project?
There are many reasons why organizations choose to outsource IT projects. If it’s the case of you not having enough resources to complete a project within scope, outsourcing can be a solution. Outsourcing some of your IT needs can also control costs and reduce your overall risk.
Let’s take a look at some of the other reasons why you’d want to outsource your IT project.
Lack of resources or required skillsets
If you physically don’t have the number of personnel on staff to complete it, or if redeployment of individuals from other teams would impair operations in other areas, outsourcing the project to a team of experienced professionals is an option.
People with the necessary skillsets can be difficult to recruit for short-term projects, resulting in a less than ideal talent pool to work with. Let’s put it another way: does the project involve a specialization that is outside of the scope of your company’s daily operations?
Even though it may not be within your area of expertise, you may decide to take on a project for its ancillary benefits, or the promise of additional business in other areas; prestige for your firm, or simply for financial reasons.
In fact, your company would be far from alone, with 78% of organizations saying their project requirements aren’t in alignment with their business goals.
If you don’t have the specific skillsets to properly execute the project, PCM Canada’s IT Staffing & Resource Management services can take the stress of the hiring and the management of these resources away from you
One in six IT projects experience cost overruns of 200%, a frightening statistic indeed. The ability to properly contain costs is a key reason why companies decide to outsource IT projects.
Many financial benefits come with using PCM Canada’s IT Staffing services over hiring additional resources. Hiring and onboarding costs alone can be a significant portion of your project’s overhead, and reducing them can drastically improve your ROI.
Another option is outsourcing the entire project. This strategy allows you to have it completed for a single, fixed price. Cost overruns can be mitigated as they usually fall under the responsibility of the service provider.
Costly errors are the bane of any project, and making one could put you at significant risk. Depending on the size and scope of the project, the risk of your liability may outweigh the benefits of executing it in-house.
Most IT service providers have a level of specialized expertise geared toward the precise parameters the project requires, which reduces the chance of costly errors.
When undertaking a thorough risk assessment or professional consultation of the project you are considering, ask if the potential liability you face is greater than the outsourcing costs.
Reduce capital costs
If you lack the physical infrastructure to complete the project, outsourcing may make sense from a capital expenditure standpoint.
Investing in hardware and assets to complete the job can not only require a significant financial outlay, you may be left with underutilized assets after the project is completed. Asset depreciation and maintenance costs need to be considered as part of the overall financial picture.
Service providers will already have many of the tools and equipment needed to complete the project. They will bear these capital costs.
As we’ve seen, there are many reasons why you would consider outsourcing your IT project. If any of these situations are challenges you face, it may be time for you to consider having a service provider execute the project for you.
PCM Canada is a leading provider of IT services designed to drive results for your business. Contact us to learn how we can help you achieve your project goals with minimal stress and investment.