by Cheefoo • Updated on 22 Sep, 2023

minutes read

what is IT outsourcing

What is IT outsourcing ?

IT outsourcing involves hiring external experts or companies to handle specific IT tasks or services. Rather than managing everything internally, organizations choose to delegate certain aspects, such as software development, network management, or technical support, to specialized IT service providers.

This helps businesses focus on their core functions while benefiting from the expertise and resources of external professionals.

Why is IT outsourcing important ?

IT outsourcing is crucial for busy office managers at midsize companies.

It offers substantial cost savings by eliminating the need for extensive hiring, training, and maintaining of infrastructure. While you may still require a modest IT team, it's a far more budget-friendly approach.

Plus, it grants access to expert IT support, ensuring that tech issues are resolved swiftly. This frees up time to focus on core business tasks and avoids unnecessary after-hours stress.

However, it's essential to be aware of the disadvantages of IT outsourcing to make the most informed decisions.

How does IT outsourcing work ?

IT outsourcing follows a systematic process that allows organizations to delegate specific IT tasks or services to external providers. By understanding the key steps involved, businesses can effectively navigate the outsourcing journey.

Process of IT Outsourcing:

  • Task identification: Clearly identify the IT tasks or services that will be outsourced.
  • Provider selection: Evaluate and select a suitable IT service provider with expertise in the required areas.
  • Contractual agreements: Establish clear contractual agreements defining the scope of work, service level expectations, and timelines.
  • Communication setup: Set up effective communication channels to ensure smooth collaboration between the organization and the IT service provider.
  • Task handover: The IT service provider takes over the designated tasks, utilizing their resources, skills, and technology infrastructure.
  • Monitoring and evaluation: Regularly monitor and evaluate the performance and quality of the outsourced tasks.
  • Communication and partnership: Maintain effective communication and foster a strong partnership with the IT service provider for successful IT outsourcing.

By following these steps, organizations can streamline their IT outsourcing efforts and maximize the benefits gained from external expertise and resources.

3 Common types of IT outsourcing

IT outsourcing serves the needs of organizations through various types, including offshore outsourcing. Different types of IT outsourcing exist, but three common ones are:

  1. 1
    Project-based outsourcing: Organizations delegate specific tasks or projects to external providers, allowing them to focus on specialized expertise for particular initiatives.
  2. 2
    Partial outsourcing: This type often involves outsourcing network management or addressing connectivity issues, enabling organizations to leverage external support in specific areas.
  3. 3
    Complete IT outsourcing: This comprehensive approach involves delegating the entire IT function, including computer infrastructure, cloud solutions, and backend operations, to external providers.

For software-related needs, especially non-standard or customized applications like CRM or accounting software, ongoing support is typically obtained from the software vendor. However, for standard software requirements such as operating systems, printer drivers, and Microsoft Office, organizations can rely on IT outsourcing.

Who needs IT outsourcing ?

IT outsourcing services in Singapore can be valuable for companies facing specific challenges or scenarios where external expertise is required. Understanding when to consider IT outsourcing is crucial in optimizing operational efficiency and ensuring effective management of IT infrastructure.

Scenarios when you would need IT outsourcing:

  • Growing headcount: When a company experiences growth, typically surpassing 20 employees, daily IT issues become more prevalent.
  • Burden on IT-savvy staff: If an IT-savvy staff member becomes overwhelmed with increasing daily IT issues, they may struggle to complete their own tasks effectively.
  • Limited ad hoc support: Engaging part-time IT support on an ad hoc basis may not provide timely assistance when immediate IT help is required.
  • IT manager departure: In cases where the IT manager leaves the company, hiring another full-time IT staff member may not be the preferred option.
  • Increasing complexity: As the IT setup becomes more intricate, seeking external IT outsourcing services can alleviate the complexities and ensure efficient management.

By recognizing these scenarios and exploring IT outsourcing options, companies can benefit from external expertise and resources, optimizing their IT operations effectively.

The process of choosing the right outsourcing partner is crucial in ensuring a reliable and competent provider that aligns with the company's specific needs and goals. 

IT outsourcing FAQs

Are there any disadvantages to IT outsourcing?

While IT outsourcing has numerous advantages, it's important to consider the potential effects of this approach. Common disadvantages can include challenges in communication, which may arise due to geographical and cultural differences between the outsourcing provider and the company. 


Cheefoo is all about technology and good content. He loves picking up marketing skills, and teaching himself new things like SEO. He's always excited to learn more and share his knowledge with others.

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