IT Subcontracting Frameworks - By: Mohsin Khan

IT outsourcing has become a successful practice, and many managing directors are hoping to harvest the various benefits of outsourcing. But it’s not that all business sectors should outsource just for the sake of it; you have to evaluate what tasks you can do better in-house.

Then comes the stage to find a workable outsourcing model. Recognize your requirements and consider what your target areas are. Do you want to enter into a lasting relation with a service provider? Looking at such questions, you should decide whether you wish to hire full time employees, outsource a specific IT function or engage offshore suppliers for a unique project. This article seeks to view these three frameworks of outsourcing.

First of all, let’s examine the need for a full time employee or what we would name personnel outsourcing. This is essentially the demand when you start getting more work than your current manpower can handle easily. You need to step-up your employee strength but you also see that the increase in workload may be temporary and not long term. Also, employing permanent in-house staff signifies increase in fixed expenses like additional PCs, furniture, etc. for all the new entrants. And if the workload subdues in future, it will be hard to layoff this extra staff.

Contract workers are usually too pricey to afford, especially in these tough financial times. So the better choice is to hire an overseas employee like a virtual assistant who will execute all kinds of administrative jobs. The point here is to increase the manpower for handling additional work without hiring in-house staff.

Secondly, sometimes you get customers who require a variety of services and your present staff might not have the needed skills to perform all those required services perfectly. This model of subcontracting goes fine if the job you are outsourcing doesn’t need bilateral work between several departments. For example, data entry work can be performed without much interdepartmental collaboration if you supply all the information and a good description of the work required.

Subcontracting such functions, hence, reduces your work load and permits you to concentrate on your core competencies. This model of subcontracting, which we can classify as function outsourcing, is also feasible when a unique IT function can be handled in a better way by offshore providers.

Finally, we have project-based subcontracting, where we subcontract only specific IT jobs. You can usually define each project by highlighting its beginning, completion, and accomplishments. Project-based subcontracting is normally done for a brief period of time and the contract ends with satisfactory completion of the project.

About the Author

Come to our website if you seek an IT outsourcing provider. You can hire an Indian Php programmer or other qualified Asian staff through us for your tasks.

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