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Our latest updatesIT Outsourcing: What It Is, How It Works, and Its Benefits
IT outsourcing is already a reality among Brazilian companies that want to optimize hiring and can be an interesting alternative for your business.
After all, the demand for qualified professionals grows every day, and finding profiles that fit the company’s organizational culture can become a bureaucratic process if there aren’t solutions to support the team at these moments.
With that in mind, different businesses developed solutions to meet the challenge of building a team with the necessary certifications to carry out day-to-day tasks—using a concept that is quite familiar in the tech universe.
So we prepared this exclusive content about IT outsourcing, a service that can help companies hire and manage efficient professionals in a simple and accessible way.
Keep following our special guide to learn:
- ● What is IT outsourcing?
- ● What are the types of outsourcing?
- ● How to know whether your company needs IT outsourcing
- ● What are the functions of IT outsourcing?
- ● How to choose an IT outsourcing company
What is IT outsourcing?
IT outsourcing is a service outsourcing model that involves technology management and project execution within a company. This practice implies transferring part—or all—of the company’s Information Technology department function to an external provider.
In addition to activities, outsourcing can also involve technological resources, so it becomes possible to manage the company’s infrastructure or meet work needs efficiently.
IT outsourcing is becoming increasingly popular because of the benefits it offers, enabling scalable growth in services without significantly increasing costs.
However, this solution is not simply about transferring internal employees’ responsibilities to an external team—it is about finding experienced and committed professionals in an increasingly competitive scenario.
In this way, instead of managers worrying about bureaucratic hiring processes and, later, task delegation, that demand is handled by a specialized company.
Beyond the sector’s outsourcing convenience, IT outsourcing also aims at other goals, such as:
- ● cost reduction;
- ● improved activity planning;
- ● increased company security;
- ● higher quality in business development.
This becomes possible by using a recruiting solution that finds the right professionals for the company.
Need developers on your team? Hire X-Apps IT Outsourcing.
What are the types of outsourcing?
Currently, there are three types of outsourcing available in the market. It is worth learning how each alternative works to understand how this model can be implemented:
Offshore sourcing
Offshore outsourcing is the practice of seeking resources, tools, and professionals from companies located outside the country of origin.
This integration became possible thanks to innovations such as cloud computing and the advancement of digital infrastructure worldwide. In this way, technology activities can be managed online even across different countries.
This is usually used by companies that can’t find certain solutions in their country, or that want more advanced infrastructures at an attractive cost-benefit ratio.
However, offshore outsourcing also comes with points to analyze, since the company may need to give up native-language support or adapt to the provider’s time zone.
Onshore outsourcing
Onshore IT outsourcing is the opposite of offshore: hiring is done within the same country.
Today, several companies stand out in the technology and services segment, so it’s possible to find well-developed national solutions.
In addition, this alternative also offers interesting benefits, such as local support, easier relationship building, and better alignment of routines.
Nearshore outsourcing
Finally, nearshore outsourcing seeks service outsourcing in nearby locations, such as neighboring continents and companies that are culturally closer to the business. This can be an attractive option in between the other two.
With it, you can look for more developed international tools and resources (if needed) while working with closer routines and work habits.
How do I know if I need IT outsourcing?
After learning more about IT outsourcing, many managers may question whether they need to adopt this solution in their company.
Some situations indicate it may be worth considering outsourcing, such as:
- ● internal team overload;
- ● low budget for permanent hires;
- ● urgent demands that make a traditional recruitment process unfeasible;
- ● lack of budget to cover labor costs;
- ● lack of internal infrastructure for technical work.
It’s common to believe outsourcing happens only when the internal team is overloaded and the company can’t grow.
Although this is one of the most frequent scenarios, there are other reasons that can help with this assessment.
For example, if your company doesn’t have enough time or resources to execute all steps involved in a new hire, looking for a specialized company can be a good solution.
After all, they handle all the legal and bureaucratic processes involved in recruiting.
In addition, traditional work arrangements bring a series of labor requirements. In this context, IT outsourcing can help reduce costs without compromising the search for qualified professionals, who will be hired within an authorized model.
Also, if your company wants to grow but doesn’t have the internal infrastructure needed to expand a squad, outsourcing can help.
IT outsourcing functions
IT outsourcing can be evaluated especially to fill specific functions in technology routines.
It is one of the most popular solutions for application development, including back and front-end for mobile apps and web systems.
With qualified professionals recruited through outsourcing, the company can deliver projects and improve tools in a complete way.
In addition, database services and DevOps operations for application maintenance can also be performed by outsourcing providers.
There is also the possibility of outsourcing other daily activities, such as:
- ● Computer maintenance;
- ● Technical support;
- ● Hosting and storage;
- ● Hardware maintenance;
- ● Corporate email management.
This offers a wider range of possibilities for businesses to hire through outsourcing.
>> Learn more: why Squads can be a great solution for IT outsourcing
6 benefits of outsourcing a developer
Some managers may still be unsure about considering this solution in their company.
In this case, it’s worth understanding the benefits outsourcing developers brings to teams and operational routines. Check the highlights below:
1. Cost reduction
By investing in IT outsourcing, the company can significantly reduce costs, since it is no longer responsible for labor charges and other requirements.
In addition, the recruitment process itself can generate various costs—from promotion to interviews and resources used to support candidates.
With an outsourcing solution, much of that is eliminated.
2. Experience validated by the provider
The provider can validate candidates’ experience before finalizing the hire.
This increases confidence that the profile fits the company’s needs and has the required skills—one of the key precautions when hiring a freelance developer.
With a qualified provider, it’s possible to validate different knowledge areas during recruitment without managers and internal teams needing to worry about it.
3. Improved company efficiency
With outsourced and certified professionals, internal teams can focus their resources and energy on more urgent issues.
This can improve project efficiency and deliver important results faster.
4. External expertise
Another advantage worth mentioning is the ability to bring more expertise into your team.
Hiring outsourced professionals brings new perspectives and up-to-date knowledge that can make a difference in a project.
5. Work time based on demand
IT outsourcing allows the business to choose the number of working hours and the contract duration.
That way, there is no obligation to hire for a long period, which also helps reduce costs.
In addition, continuing or stopping work can follow the company’s needs.
6. Work infrastructure is provided by the outsourcing company
Finally, the company doesn’t need to worry about providing the resources or tools required for the project.
The required equipment is provided by the supplier, so the developer already has what they need to start as soon as possible.
How to choose an IT outsourcing company
After evaluating the benefits, the manager can decide whether IT outsourcing fits the business. However, before implementing it, it’s essential to know how to choose a qualified company.
First, check the company’s security level—especially since it involves recruiting and technology services. This helps ensure you hire a trustworthy provider.
If possible, analyze the company’s portfolio: the software they have and other projects they developed.
This helps verify their reputation and whether their proposal meets your demands.
Finally, check the technical support offered beyond the outsourced professionals. Ideally, there should be efficient assistance available whenever your company needs it.
4 tips when hiring an outsourced developer
Finally, hiring an app developer is an important process for companies, and some tips can help you find the best professionals.
Here are 4 suggestions to evaluate before formalizing your team:
1. Define the project scope the developer will be part of
First, it’s essential to have all project details defined, such as the required time and specific objectives.
That makes it easier to evaluate which profiles have the necessary skills and whether the professional is qualified to follow your scope.
2. Set your company’s available hiring budget
Defining the budget available for hiring is fundamental, as it will be one of the metrics evaluated during selection.
With a defined budget, you can choose professionals with a better cost-benefit ratio.
3. Know which technologies the developer must master for the project
Before interviews and recruitment, it’s essential to define which technologies are required for the project.
After all, the professional must master them to work efficiently.
So determine which functions and tools are needed—such as back or front-end technologies, databases, and other development requirements.
4. Review hiring conditions to avoid surprises
Reviewing hiring terms ensures a smoother partnership without surprises.
Define the developer’s activities, the main expectations, and monitor aspects such as workload and delivery time, ensuring the professional is the best fit.
>> Hire developers on X-Apps Hire Squads platform!
Hire outsourced developers in minutes!
IT outsourcing and its benefits don’t need to be complicated for your company.
With X-Apps Hire Squads, you can hire outsourced developers in just a few minutes, directly online.
The entire process is online within our platform, and you can define all service details—from required technologies to budget and expected skills.
In addition, you can see the cost of available developers and build a team according to your business needs and goals.
So get to know our solution and increase efficiency in your IT team! Build your squad the way your company needs on the Hire Squads platform.
Learn more
>> How to hire a developer: everything you need to know
>> The importance of a front-end developer for your project
>> What is a full-stack developer and how can they help your business