Pros and Cons of it Outsourcing

by on February 4th, 2011
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IT Outsourcing is no more an exclusive technical term used by IT giants; it has become the most frequently spoken concept in the field of software development even by emerging small scale companies.IT Outsourcing is considered to be just about offshoring some non-core and IT services to developing nations. However it is not so, there is much more to IT Outsourcing than the basic offshoring activity.

On asking about the most important pro of IT Outsourcing to the CEO of a leading bank in America, he said, “When offshoring of services are opted for, we do not have to worry about maintaining a conducive infrastructure or recruiting specially skilled labor force to carry out the IT activities. We, instead, concentrate on the business needs.” On asking him about the con that affects the concept of IT Outsourcing the most, he referred to the lack of job opportunities for the natives. “In an effort to minimize the cost involved in carrying out the IT operations, we often tend to neglect the employment needs of the educated citizens of our own country.”

From the perspective of service providers, IT Outsourcing is seen as the most revenue making option. IT Consultant at leading Software Company in Mumbai told, “IT Outsourcing is where we can make the most money. As service providers, we offer affordable and high quality labor without compromising the needs of end users.” However, by providing IT Outsourcing services, he confirmed the several challenges that lay in this type of service providing “A heavy competition compels the service providers to come up with more cost-effective IT Outsourcing solutions, which in turn leads to depreciation in the quality of the output.’Cheap’ and ‘high quality’ never go hand-in hand.”

In a discussion with IT Outsourcing expert of a well-established software firm in New Delhi, the threats in carrying out this kind of business became evident. “When recession hit, we were the first ones to be chucked out both from American and European Countries. This is proof enough of the insecurity that we face in carrying out IT Outsourcing.” She continued, “IT Outsourcing may give us good economic progression, however the instability needs to be looked out for. Such occasion stress the importance of having a strong hold in the domestic areas.”

Form the perspective of employees of organizations that provide IT Outsourcing services, it is seen as a good opportunity to grow and enhance the domain level knowledge. A Technology Lead of one such software establishment said, “When we work for abroad clients, we get to interact with them on a day-to-day basis. Onsite opportunities are available which increases the exposure thus adding value to our skillset, and of course enables us to make some quick money too”, he added with a smile.

In essence, when IT Outsourcing is concerned, it is a win-win situation for the clients and the service providers. However economic stability plays a vital role in the success of IT Outsourcing as a whole.

About Author

Cygnet Infotech, an India based Microsoft Partner with Gold and Silver competency provides offshore software development and skilled resources to its clients in 20 countries globally. Having developed a mature global delivery model, Cygnet has also earned ISO 9001, ISO 27001 and CMMi Level III certifications. Visit

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