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Types of IT Outsourcing

There are distinct pros and cons associated with outsourcing IT-related jobs, and there is no one-size-fits-all solution. Therefore, companies should look at the long-term strategy of how to maximize their resources and reduce their cost to stay competitive in the market. When you are trying to select a company to outsource your IT-related work, then you must look at the reputation of that company, its past work, cost, and the technology it uses before selecting one.

Nowadays, many businesses outsource some of their functionalities to other companies due to cost considerations. Furthermore, companies may find it difficult sometimes to recruit talent from their workforce so they find it highly convenient to outsource that work to some other company.

Types of Outsourcing:

Onshore Outsourcing

Onshore outsourcing or domestic outsourcing involves giving contracts to an external service provider which is located in the same country to offer IT-related work either remotely or on-site.

Offshore Outsourcing

This kind of outsourcing involved contracting a company that is situated in a foreign country that offers high-quality work at a lower cost. It also helps them to save a lot of tax.

Near Source Outsourcing

In near-source outsourcing, the IT-related work is given to a company that is situated in a country that shares a border with it (USA and Mexico). In such an arrangement, travel, and communication between the two companies becomes relatively easier.

Cloud Computing

In this kind of outsourcing an external service provider is contracted to get related-related services over the Internet. This can include infrastructure-as-a-service, platform-as-a-service, and software-as-a-service.

Managed Services

In this type of outsourcing an external company is asked to provide network management functions including call center, virtual private networks, firewalls, network monitoring and reporting, and so on.

Some of the important services that are typically outsourced include the following:

Web development and hosting

Businesses give contracts to other companies to build their websites and host them online. Many companies hire React JS developers or experts in other frameworks to create responsive websites for their companies that will allow them to connect to their target audience and sell their products.

Application or Software development

Out of various Outsourcing IT services, app development is the most popular. Many businesses consider building mobile apps so that they can engage more effectively with their customers. Outsourcing of mobile app building job offers a highly cost-effective solution in addition to getting a professionally built app that will expand their business.

Technical support or help desk

Many businesses also outsource their helpdesk service to another company. In this case, the outsourced company provides all that technical help required by the customers who are using the products of the company that has outsourced the service.


Many telecommunication companies retain their competitive edge by outsourcing certain processes of their business to those companies that offer cost-effective BPO support services. This includes services related to wireless, broadband Internet, satellite TV, Wi-Fi, cable TV, and many more.

Database development or management

Data is one of the precious resources of a company that, if not managed properly can become unwieldy. To systematically collate the database of a company, many businesses are outsourcing this process to other companies that have the domain knowledge and expertise in this matter. Database management includes database migration services, storage of data in the desired file format, and database development that will align with the business requirements.

Networking or Communications

In this type of contract, networks or telecom management services are outsourced to another company for its management, maintenance, and improving core network infrastructure.

Hardware, Software, and Network Installation and support

The companies sometimes outsource services related to hardware or software installation to save on operational costs. In this way, the business can focus on its core businesses and outsource those non-core processes to certified experts to offer enhanced customer services as well as save on business expenditure.

Disaster Recovery

In this, the cloud computing and backup service model uses the cloud resources to not only save guard applications and data from disruption but also have a total system backup that will allow the business to continue even when there is a complete system failure.


In this type of service, businesses outsource the safety and security of their network and data from any unauthorized intrusion. Security firms offer complete system security to ensure that the data and the network of a company are not compromised due to any hacker attack.

Digital Marketing

Many companies take the services of digital marketing experts to improve their brand recognition online. In this effort, digital marketing agencies undertake a slew of marketing strategies across various channels to ensure that the target customer of a company knows about the brand and its products.

What are the Advantages of Outsourcing?

There are a lot of benefits of outsourcing IT services. Many companies outsource some or all of their It operations. Some of these benefits are listed below for your ready reference.

  • Often, an overseas vendor with special equipment or technical expertise can do a task in a far better manner than the existing employees of the organization. Outsourcing in such a case brings efficiency to work and improves productivity.
  • One of the biggest reasons many companies in the first world country outsource their IT-related work overseas is the reduced cost of labor, equipment, and overall operations.
  • Many businesses outsource their job to cope with seasonal or cycling demands. Outsourcing some of their jobs helps them to bring additional resources as and when required, thereby optimizing it fully.


There are distinct pros and cons associated with outsourcing IT-related jobs, and there is no one size fits all solution. Therefore, companies should look at the long-term strategy of maximizing their resources and reducing costs to stay competitive in the market. When selecting a company to outsource your IT-related work, you must look at the reputation of that company, its past work, cost, and the technology it uses before selecting one.

Written By

Ravi Makhija An entrepreneur, an IT professional. Tech geek. Founder & CEO at Guru Technolabs - Globally Trusted Web & Mobile App Development Company. Loves writing about new technologies and the latest trends in IT field.

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