The overwhelming costs of retaining task-specific experts while providing high remuneration and benefits often reduce overall profit, which could be swiftly avoided.

Imagine slashing your IT expenses by 75% while still getting top-notch service. Although it may sound impossible, it is entirely plausible and proven through Outsourcing!

You can discover a treasure trove of savings and efficiency by tapping into global talent.

What is the current state of outsourcing, and do you need one?

Outsourcing is getting your work done by someone you hire outside your office, often called a third party or freelancer working on a contractual basis.

It allows you to “borrow” a team of experts remotely from any part of the world to work for you at your desired price; usually, if you want to get it done at a lower price, need a quick fix, continue contractual work for a prescribed price, or to avoid costly hiring.

Although many businesses prefer to keep their IT services in-house, which is called in-sourcing, outsourcing is becoming very popular in both the US and Europe. To save excess expenditure, numerous companies choose to outsource their IT services.

In the US, about 300,000 jobs are outsourced each year, with 37% of them being IT operations.

In Europe, countries like Germany and the UK are leading the way in outsourcing IT services. A global survey by the Boston Consulting Group in 2020 revealed that companies spent nearly 50% of their budget on outsourcing.

This practice is so common that many local firms delegate their tasks to outsourcing agencies.

Therefore, if you feel that you are losing your essential funds and time on hiring, retaining, and paying experts, which you could have saved and reused for other important purposes, then outsourcing is for you.

How Outsourcing Will Empower You?

Outsourcing can save up to 75% of costs while strengthening your firm’s daily operations and improving quick outcomes.

Here are a few points we would like to highlight.

1. Lower Labor Costs

Hiring skilled IT professionals can be very expensive in the US and Europe, and along with it comes many terms, benefits, pensions, etc.

According to the Bureau of Labor Statistics, the average salary for an IT professional in the US is about $96,000 per year. In Europe, it can be around €70,000 (about $80,000) per year.

On the other hand, outsourcing to countries like Nepal, a booming outsourcing center, can cost as little as $17,000 per year for the same quality of work.

2. Reduced Office Space and Equipment

Likewise, when you in-source your projects, you must provide office space, computers, and necessary equipment for your employees to work with, increasing your costs.

Outsourcing agencies already have the necessary equipment, facilities, and workforce, saving you even more money. You only need to pay for completing the task, reducing your expenditure for the rest.

3. Access to Skilled Labor

Many countries that offer outsourcing services have a large pool of skilled workers who are just as talented as those in the US and Europe but cost much less.

Hence, you get high-quality work for a fraction of the price if you hire outsourcing providers.

4. Training and Benefits

Similarly, training new employees and providing benefits like health insurance, bonuses, and festive compensation can be very costly.