How to Know If You Should Outsource IT as a Startup Company

January 19, 2021

Overview

The concept of outsourcing is nothing new to the world of technology. There was a time
when the idea of “onshoring” was trendy. But the quality and efficiency of talent from
anywhere around the world can make a company’s core product and business stronger. This
concept is commonly referred to as “outsourcing”.

There are many advantages for a startup company to consideroutsourcing its IT
operations.Some of theseinclude lower overhead costsand quicker technological
integration. Every startup has to define the reason for their IT outsourcing needs and
decide if certain requirements are in its best interest.

While it is important for any company to consider all sides of this outsourcing
question, there are some signs that you can considerbefore making a strategic decision.
This guide will help to show you what your business needs are before contracting the IT
services of a provider.

Benefits to Consider Outsourcing IT

Your team often has deadlines to meet and may also be working on a variety of tasks with
limited time on hand for other things. Outsourcers have the tools readily available and
often possess the latest information about the market to help companies get to more
innovative faster. In such a case, outsourcing IT is an attractive idea. Here are a few
other benefits to consider outsourcing IT.

Speed to market:

Decreasing your speed to market gives you a competitive advantage when it comes to
creativity and innovation because it allows you to reach customers with new services and
products before others in the industry.

Expert assistance:

Without a full in-house team capable of meeting all your technological requirements, it
can be difficult to have all the experties that you need. Outsourcing allows you the
benefit of having experts in specific niche fields to increase your windows of
opportunity.

Solve business goals:

You can use cross-functional teams in outsourcing endeavors to plan and design your
digital transformation efforts. Functional experts in areas such as IT and even
operations, strategy, and research and development can all work together in an agile
environment to coordinate efforts and solve for achieving business goals.

Mature talent accessibility:

When the right people are around your startup organization’s table, the possibilities
are endless. Outsourcing your technology so you can focus on your core business often
gives you access to significant talent capital that you may not have access to until
several years down the line.

Reduces implementation complexity:

Let’s say you need to have cloud services, a mobile application, and a customer
interface. To get the full benefit of this would take a single suite of solutions which
would reduce the complexity of implementing multiple processes from multiple
vendors.

These five benefits along with the cost savings potential and active management
throughout the process can be critical and useful when deciding whether or not
Outsourcing your company’s IT is a good idea. Startups rarely have all the core
competencies to run every aspect of their business from the start. But onboarding a team
of people via an outsourced environment can allow for barriers to innovation to be
removed and your business to strategically grow as you focus on core business functions
and delegate the non-core business functions, especially if this is not your company’s
purpose.

Benefits of Having an In-House Team

While there are many great advantages to Outsourcing your company’s IT team, it could be
beneficial to look at the other side of having an in-house team to take care of your IT
needs. Here are some of those benefits:

Knowledge retention:

This is the process of identifying critical knowledge points unique to your business.
With an in-house team you are less likely to be at risk of loss with niche aspects to
your technology and can prioritize based on knowledge gaps and deficiencies. Once you
make these identifications, you can develop action plans to retain new learnings.

Easier collaboration:

Unless you are dedicated to having daily scrum calls with an outsourced IT team, an
in-house team provides easy accessibility to work together and collaborate. Problems can
be solved at a faster rate and new ideas can be brought to the table and implementing at
a more realistic rate.

Culture fit:

As with any type of team, you have the authority to pick those who fit with your
company’s culture and align to your company’s goals and values. The people you choose to
be on your team will likely care about your product and be willing to work overtime if
needed to get it to where it needs to go.

As with any type of team, you have the authority to pick those who fit with your
company’s culture and align to your company’s goals and values. The people you choose to
be on your team will likely care about your product and be willing to work overtime if
needed to get it to where it needs to go.

When Should You Outsource?

Sometimes, outsourcing will become very evident and necessary within the general
discourse of understanding your business needs. If you are not sure yet, here are some
signs that may lead you to a better decision.

  • When IT is negatively impacting business operations.
  • When there is a significant skills gap within the organization.
  • When the time to market of a product is the #1 priority.
  • When you have a high turnover of IT professionals.
  • When your project requires significant and specific experties.
  • When IT is not your core business or competency.
  • When it is more of a commodity than a competitive advantage.
  • When it simply makes sense.

Final Thought

As a startup company, it is highly important that you spend the majority of your time
not only working on your business but working on your core business. This is especially
true for non-IT related businesses who need to stay focused on creative endeavors and
remaining on the cutting edge.

At Inventive IT, we understand the need to have top-rate IT operations and a highly
skilled team behind you at all times and for a fraction of the cost and time it would
take your in-house team. That’s why we specialize in provided full IT development and
management services to startup organizations. Our goal is to not just be a company but
be a technology partner to the startup community, giving you the time and resources that
you need to succeed at tech and innovate your business far into the future.

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