You are an expert in your field. No matter what your business is, you will know it better than any outsider ever could. It’s why you are successful. However, it’s impossible to be an expert in everything. It is neither practical nor possible. Outsourcing key parts of your operations to dedicated experts can improve your operation and let you maintain focus on your core business that drives revenue.
Outsourcing allows you to maintain control over your process and systems, while freeing up your employees to focus on what they do best. Personnel costs make up the bulk of most organization’s hard expenses. Salaries, benefits, and HR issues can be a drain on company resources, especially since many costs are variable.
Companies that try to be experts in everything have to devote substantially more resources to research, develop, implement, and maintain business functions. This costs more money and takes more time. That time might be better utilized focused in other areas that relate back to your company's core mission.
Staffing and maintaining a skilled IT team can be expensive and difficult. Staying on top of the latest security threats, compliance issues, software, technology, and strategies means constant vigilance and attention. Outsourcing solves these problems, as well as controls expenses.
When you have an in-house team, scaling up quickly when business needs dictate can be exceptionally difficult. Can you find the people with the skills you want on your timetable and can you afford them? Outsourcing allows you to grow almost immediately. Your ability to scale up is really limited only by your budget.
Likewise, if business slows down, you can reduce resources with outsourcing. Whereas, with an in-house staff, you are faced with staff reductions or stuck with the continued cost of maintaining a large staff that is no longer needed.
Controlling costs associated with people, hardware/software, and capital expenditures means easier budgeting and expense control.
Outsourcing takes the following variables out of the equation – turnover, finding skilled replacements, covering vacations and illnesses, employee benefit costs... no longer will you be faced with these concerns. In addition, you may be able to turn fixed IT costs into only paying for what you need. You can save on training and continuing education costs.
You will manage your costs for equipment, server upgrades, and maintenance by outsourcing. Paying a fixed, budgeted rate means you won’t have the unscheduled expense when a server dies or lightning fries your equipment. Constantly having to invest in the latest technology can be costly. Outsourcing means you can expect the technology you need without having to bear the costs by yourself.
Based on depreciation schedules, many capital expenditures won’t pay for themselves before they reach the point of being obsolete. By outsourcing your non-core functions, you can spend your capital dollars on items that are directly related to your sales, products, services, or customers.
There are numerous benefits for your business when you outsource backend functions, but especially in IT. In addition to cost savings on personnel and technology, companies benefit from experience, increased efficiency, risk management, cutting edge technology, security, problem resolution, and data recovery.
Finding skilled, trained, and certified employees is difficult and expensive. Just when you get them trained to do the job the way you want, another company is ready to poach them. Outsourcing means zero worries about turnover and training. No matter how skilled your IT team is, new technology, techniques, and software are being developed rapidly. Can you afford to let them learn as they go on new projects?
It takes a lot of time to stay on top of new advances. With outsourcing, you are buying expertise and experience, as well as professionals that are staying on top of current and future trends.
In-house teams are pulled in a lot of different directions by staff. Outsourcing makes implementation nearly immediate without putting other projects on hold. With years of experience in the field and trained pros already on staff, startup or switch over times are minimal.
Every business decision and investment carries inherent risk. Outsourcing shifts much of that risk from you to the company doing the work. Since it’s their full-time job, they are more likely to manage security and compliance issues. If they do fall short in these areas, they will share or assume responsibility.
Few businesses except the largest can afford to constantly upgrade and have best in class technology. For small and medium sized businesses, it’s almost impossible. Outsourcing allows even the smallest companies to play on the same level playing field as the big guys. You will work with best in class experts. Outsourcing companies, by their very nature, need to have high quality staff that specialize in various aspects of the business. Trained and certified, they will have experience your local staff would rarely have.
Vendors have staff that can accommodate additional work. Internal, or in-house IT staffs, may not have the capacity to handle additional projects as they arise. With limited resources and expertise, they may not be able to move quickly or make the best decisions in a timely manner. Outsourcing has a built-in flexibility to move fast along with access to specific subject matter experts.
It seems like every day you read about another major security breach. Wells Fargo, Gmail, Blue Cross, Yahoo, Uber, eBay, and Equifax are just a few of the companies who have suffered from data breaches. The penalties for failing to protect consumer data are growing rapidly, including the recently passed GDPR (General Data Protection Regulations) in Europe and enhanced privacy laws in California. Outsourcing minimizes the risk and demonstrates proactive action to protect data and potentially limit civil liability.
When an issue arises, an experienced team can diagnose and resolve problems more quickly. In addition, companies that specialize in IT services will likely have the expertise in-house already. They have probably dealt with, and fixed, similar problems before. This leads to less down-time, uninterrupted service, and a continuous flow of functionality. In addition, seasoned staff that deal with problems regularly will likely handle crisis management more calmly and effectively. A heart surgeon that has done thousands of operations will deal with an anomaly better than someone who only operates a couple of times a year. It works the same way with IT functions. When there’s a problem, you will want access to someone who has dealt with that issue many times before.
In case of a server crash or natural disaster, data recovery will be faster and easier. With onshore, near-shore, and offshore locations, data is spread to multiple locations and can be accessed despite disruptions.
By providing a consistent, controlled monthly expense, budgeting and managing operations expenses becomes manageable. Expenses grow only as your capacity needs increase. Most importantly, outsourcing your IT allows you to focus on your core business. Managed service companies have specialists in disaster recovery and backup systems.
In addition, choosing the right companies to outsource your IT work can lead to:
Whether it’s compliance issues, legal regulations, or security, outsourcing can provide significant solutions that reduce your risk. It can also mitigate disaster if a data loss occurs.
With regulations across international borders changing rapidly, an outsourcing partner that understands the intricacies of these rules can remain compliant. The recently passed GDPR (General Data Protection Regulation) in the European Union is impacting nearly every company whether you do business in Europe or not. The new set of rules are designed to give EU citizens more control over their personal data, but can create significant issues for companies that store that data. If you collect any personally identifiable data, how you gather that data and under what conditions, as well as what you do with it, will be regulated.
GDPR may only be the start of more regulations regarding data and privacy. California has passed the toughest data privacy law in the U.S., requiring data providers to disclose what data has been collected and whom the data has been sold to. Consumers also have the right to request deletion of personal information along with the ability to opt out of the sale to third-parties.
Tracking the evolving laws and regulations takes a staff immersed in the details daily to maintain compliance.
When handling personally identifiable data, the threat of incursion and data breach is a real concern.
In the U.S. alone, more than 178 million records were compromised in breaches in 2017. Worldwide, estimates are that more than 2.6 billion data records were exposed during the year. That equates to 296,914 records every hour of every day.
The penalties and fines can be substantial. A GDPR violation can result in a fine of up to to 4% of worldwide annual revenue. Is your data safe and do you fully comply? You need a secure and locked-down environment staffed by teams of vigilant security officers.
You may want to consider DDC RiskView, which provides a deep dive into your company’s database to identify risks.
Working with an outsourcing company dramatically reduces your risks of data loss. Data is backed up and protected securely. Handling data in-house can put you at significant risk. Either way, if something bad happens and your data is lost in a fire, flood, earthquake, other natural disaster, or equipment failure, you want an expert working on the case. The cost to your business can be catastrophic.
90% of business computers aren’t adequately backed up, according to the Contingency Planning and Strategic Research Corporation. That is especially discomforting when you realize that 93% of companies that lose data storage in excess of 10 days file for bankruptcy within a year, according to the National Archives & Records Administration.
Outsourcing mitigates this risk.
First and foremost, you need to clearly identify the scope of the work you need and your expectations. This will help determine the type of service you need and the cost. For example, do you really need 24/7 service or will support during normal business hours work for you? You want to make sure you have the service level you need without paying for services you do not need.
You want to find a company that is experienced in the specific area you wish to outsource and is familiar with your industry, if at all possible.
Make sure the company you work with knows what they are doing. Do not rely on what a sales person tells you or what a company’s website says they can do. Ask for a portfolio of similar work and ask for references. You will want to talk with current customers and see if the service and relationship models the way you wish to work.
If they say they can integrate with your systems, ask for specific instances where they have done so successfully.
This is an important decision and you want to make sure you have done your due diligence.
You will want to have a firm to understand your company’s capabilities and capacity. Just because someone is good at one thing doesn’t mean they are good at everything. Ask for specific examples of how they have handled similar tasks in the past. Again, ask for references whom you can contact. Find out how they handle add-on services and what capacity they have available to grow as your business grows.
If your business works with an attorney, he or she will charge you top dollar. However, he or she will more than likely have associates and junior partners who can handle portions of your job, and yet you will still be charged at a premium. You don’t want to get hit with top rates when a less expensive attorney can handle the matter efficiently. The same goes with choosing the right IT Outsourcer. A team with a mix of junior, mid-level, and senior professionals can give you a quality service commensurate with the task at hand and help keep costs reasonable.
A good IT outsourcing company will not only provide you the required services needed, but will also act as a consultant to help you develop best practices within your company. They deal with companies every day in different industries and are exposed to a lot of different practices. Ask how they can help you streamline processes and increase your efficiency.
Make sure you have a dedicated point person to work with to ensure good communication and accountability. Poor communication or chain-of-command can crater a relationship quickly.
In addition, you may also want to ascertain:
DDC Outsourcing Solutions USA handles Business Process Outsourcing. In addition to IT outsourcing, DDC OS USA handles back office management, knowledge processing, customer lifecycle, and analytics by providing strategic solutions using offshore, near shore, and onshore production and management teams.
Kantar WorldPanel represents a world leading marketing and information group, providing research to multinational organizations worldwide. They process large amounts of data and their business depends on accuracy. Transitioning to outsourcing was handled quickly with no loss in service and no down time. The outsourcing process included a hybrid on-shore and off-shore solution with secure image archives. This allowed paper copies to be securely destroyed. The end-to-end process was fully auditable and handled approximately 1.6 million receipts each year with data capture accuracy maintained at a rate consistently higher than the industry standard.
TicketCorp provides amazing experiences for live music, sports, and theatre nationwide. They needed a stand-alone ticketing application with Ticket Network API integration in order to sell tickets and merchandise. The solution was to program a customizable app with interactive seat maps, geolocation and events search capabilities, ticket delivery options, electronic payments, and social media API integrations in a secure environment to protect user data.
Brandbank is a Nielsen company and is a leading provider of branded digital content. They provide service to hundreds of multinational companies. The solution included a customized application that interfaces with the company’s system developed in-house that securely captures and stores system data.
Dedicated teams and resources assigned exclusively to the client are maintained in two separate off-shore locations. When a Typhoon struck one of the locations, scheduled work and processing was reassigned seamlessly to the second location with no loss of data or down time.
You can read about additional cases studies of how IT outsourcing was beneficial to organizations.
From AP processing to accurate, secure medical payments processing to IT outsourcing services and beyond,
DDC Outsourcing Solutions can handle all of your back office and customer-facing needs.
Request a free consultation to discuss your project today.
DDC OS USA
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