Outsourcing is a new term nor a new trend. It has rather been one of the most sought-after trends since the late 1980s. However, outsourcing work continues to be the most efficient solution for most companies across industries. According to Fortunly, the global IT outsourcing market is expected to grow by $98 billion by 2024. To understand why organizations continue to choose strategic outsourcing, we need to first discuss what strategic outsourcing means. 

What is Strategic Outsourcing? 

Strategic Outsourcing indicates the set of services/products that are outsourced by an organization through a third-party vendor. The companies outsource work for various reasons, it is highly advantageous to them as not only do they get access to global and knowledgeable talent but also helps them save time and cost. This is true for most organizations from any industry.  

Why do companies choose Strategic Outsourcing? What value does it bring to the business? How is it beneficial for the organization? 

1. Cost reduction: According to a recent survey by Fortunly, about 45% of companies admitted that the major motivation behind outsourcing IT projects for them is saving money. A lot of research and discussion goes into choosing the right partner for nearshoring solutions which includes discussions on budget for the desired result. A set budget for the project helps companies rely completely on the service providers. Ultimately, the organizations become free of overhead charges and can utilize the amount for other operations. 

2. Reduced time-to-market: Be it any product or service, a business wants to beat competition and one of the best ways to do that besides good quality is quick releases. Strategic Outsourcing helps companies focus on their core business plan while the backend work is taken care of by the vendor within the discussed deadline. This is especially true for IT projects being outsourced. This collaboration automatically helps businesses release their products/services on time and possibly before competitors.  

3. Access to talent: Collaborating with a service provider ensures access to global talent. When a company communicates its requirements and desired results, the service providers gather the best talent from a large talent pool to make sure that the company gets what it wants. Every service provider invests only in experts with experience and knowledge while staying within budget. This is not only important for the company outsourcing the project but also for the service provider to stay ahead of its competitors. 

4. Better resource allocation: With outsourcing comes efficient resource allocation. Reduced cost and more time to utilize help the companies use the time, money, and manpower on other operations. While the businesses can focus on their core business plans, they can utilize the resources in a better way, which would otherwise be engaged in the project that was outsourced. This helps them implement their plans effectively and efficiently and get an edge over the competitors.  

5. Assured quality: When a service provider takes up any project, the first and foremost thing it has to ensure is quality. Hiring the best talent unquestionably means the best quality as well. It won’t matter if the budget was big or small or if the work was delivered on time unless the quality is top-notch as well in accordance with the desired result that was discussed with the company. With outsourcing, the organizations can be rest assured that the quality will definitely be maintained as communicated.

6. Risk management: One of the major benefits of outsourcing projects or collaborating with a third-party service vendor is that now the company has access to experts who can advise on challenges and even help businesses minimize losses by anticipating the risks according to the changing market dynamics. 

Benefits of Strategic Outsourcing enables companies to plan for the future carefully and get the best results that ultimately help them move forward in their respective industry. If a company makes meticulous choices when deciding on the right outsourcing model for a particular project, it can not only save costs but also deliver products of high quality. Essentially there are three types of outsourcing models- Onshore, Offshore and Nearshore. Aspire Systems’ nearshore outsourcing model offers the benefits of offshore model combined with the convenience of the onshore model.