What is better, to hire your own system administrator, programmer, or web designer, or outsource these functions to specialists from other companies? At a certain stage of a company’s development process, this question is bothering the management of enterprises. Let us dwell on the matter and try to figure out in which situation it is better to hire an in-house employee and when an outsourced specialist will be better.
In-house IT specialists
Every enterprise needs to make decisions that will be profitable for it. A business benefit means that the decision either reduces costs or increases revenue. From the point of view of costs, in-house staff always implies a significant amount of expenses compared to web development services outsourced from a professional agency.
If an employer is not going to spend all their efforts on combating staff turnover, then, first of all, it is crucial to foresee a decent reward for in-house employees. Investments in training should also be included because the employer needs highly qualified personnel that have up-to-date and relevant knowledge and expertise. Plus, there will be extra expenses on the premises, workplaces, electricity, etc. In addition, personnel service should be rewarded – salary calculations, personnel administration, etc.
If you take all this into account, the amount is impressive. Yes, you have to pay for quality staff. These are the people in your company who influence the bottom line. These are the specialists without whom business is impossible since they possess key competencies for running this business.
Outsourcing Vs In-House Staff
Therefore, in order to understand whether it is profitable for an employer to hire in-house IT staff, it is necessary to answer the question: is IT competence key to your business?
There are always a number of routine operations, as well as tasks that are not critical to the business, nevertheless, they need to be performed. Or vice versa, there are tasks that require unique competencies, and their creation within the company will require too much time and will be very expensive.
In both cases, it is better to turn to outsourcing the required specialists. Therefore, you will buy quality services from professionals for whom this is the main business. Thus, your business will avoid additional costs, and as a result, you resort to outsourcing when it is profitable for your venue.
Everything depends directly on the company, the type of services it needs, and, accordingly, the specialization of the IT staff (development, administration, testing, support, etc.). It makes no sense for a law firm consisting of three people to hire a network administrator. However, a large organization that has at least 3-5 sites should open a vacancy for a webmaster to increase efficiency and maintain the required level of security of these platforms.
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Outsourcing And Outstaffing
Classic outsourcing and outstaffing should be distinguished. Outsourcing of IT specialists might. When using outstaffing, these IT specialists work as ordinary employees of the company but are not part of its staff, they work temporarily within the framework of some project or process.
Outstaffing is most expedient in periods of surge in IT activity, when the need for more personnel increases sharply in connection with the implementation of a big IT project, for example, a new enterprise management system. And after the implementation of such a project, IT specialists of this profile are needed much less – only for the current development of the system and its support.
In the case of classic outsourcing, the risks still largely fall on the service provider. If we talk specifically about IT outsourcing, it is crucial from a business point of view that key IT competencies and employees who possess such competencies are hired as in-house specialists and not transferred to an IT service provider.
In the field of software development, outsourcing is often beneficial to those trying to save on the cost of programmers’ work as a large component of the product’s cost. Outsourcing software development is profitable for medium and large enterprises.
But keep in mind that projects will be successful only in the case of a competent and scrupulous management approach. This process cannot be left without supervision or completely entrusted to a local specialist. The success of the measures directly depends on the involvement of the manager in the project on the part of the customer.
Outsourcing To Ukrainian Companies
The IT sphere in Ukraine continues to actively develop. A lot of American and European companies are actively resorting to the services of firms specializing in IT outsourcing. In addition, software companies are often supported by foreign capital since these enterprises understand the potential of Ukrainian specialists and are ready to invest in them.
There are plenty of benefits that outsourcing to Ukrainian companies can offer. In particular, it is a cost-saving alternative to outsourcing to companies from Europe and the USA. Besides, the specialists from this country are really experienced.
All in all, it is complicated to formulate a one-size-fits-all solution in relation to IT specialists. Before making such a decision, it is essential to analyze the size of the company, the scope of the work that needs to be done, as well as the expenses that your enterprise will incur in both situations – hiring an in-house specialist and outsourcing to a professional agency.
If you have decided that an in-house specialist is better for your enterprise, get ready for quite a time-consuming hiring process, since finding a professional who will match all of the cultural and professional requirements is a challenging process.
In the second-case scenario, it is crucial to select a reputable agency with a proven record of successful projects, and they will take care of the selection of a specialist or even a team that will be suitable for your project and company. Regardless of the selected option, it is crucial to assign an in-house manager who will supervise the activity of a newly hired in-house specialist or an outsourced team.
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