Reasons to Consider Outsourcing Your Digital Technology Requirements

Reasons to Consider Outsourcing Your Digital Technology Requirements

Know more of our DIGITAL & ICT STRATEGY capabilities.


Outsourcing your digital technology requirements can mean spending less energy on managing complex IT systems and more on your core business purpose. The way you handle your digital technology needs will make a big difference to your business – often determining the difference between success and failure.

It can help companies be more efficient, improve communication and collaboration, and better serve customers. While many businesses have in-house IT departments that handle digital technology needs, there are many advantages to outsourcing this work to a third-party provider. In fact, 92% of G2000 companies (the top 2000 global companies) use IT outsourcing.

More than ever, businesses need to move fast and be agile to stay ahead of the competition. They need to be able to adapt quickly to changing markets and customer demands. This is where outsourcing can help. When done right, outsourcing can tackle all aspects of digital transformation, including IT infrastructure, business model transformation, and so on.

Why would an organisation consider outsourcing?

There are many reasons why an organisation might choose to outsource their digital technology requirements, from cost savings and access to specialist skills to improved efficiency and quality. Some of the most common reasons for outsourcing digital technology requirements include:

Access to hard-to-obtain skills or capabilities

When you outsource your digital technology requirements, you can tap into a pool of world-class expertise that would be difficult and expensive to replicate internally. By working with a team of experts, you can be sure that your digital technology needs are in good hands.

Speed up time-to-market

Outsourcing can help you get your products and services to market faster. With a team of experts working on your project, you can avoid the costly and time-consuming process of trial and error. Not only will this save you time and money, but it will also give you a competitive edge – opening up market opportunities, for example.

Free up internal resources

When you outsource, you can free up internal resources that can be better used elsewhere in the business. This is especially beneficial for businesses that don’t have the in-house expertise to handle their digital technology needs. Rather than tying up valuable resources in a project that is not central to your business, you can focus on what you do best and leave the rest to the experts.

Increased agility and scalability

Changes in the market and business environment can happen quickly. Outsourcing gives you the agility to respond quickly to these changes. As your business grows, you can scale up or down your outsourcing services as needed. For example, if you need to launch a new product or service quickly, or enter a new market, outsourcing can help you get up and running faster.

Increased delivery performance in an underperforming area

There are many reasons why an internal team might be underperforming. It could be a lack of skills, resources, or motivation. Whatever the reason, when you outsource, you can bring in a team of experts who will get the job done right. For example, if you need help with a complex web development project, you can hire a team of developers who specialise in that area.

Ability to focus internal capability development in more strategic areas

Leveraging an external team of experts can help you focus your internal resources on developing capabilities in more strategic areas of your business. This is especially important for small businesses and startups who may not have the internal resources to spare. Additionally, it can be beneficial for businesses that are in a period of growth and need to invest their resources wisely.

Opportunities and risks of outsourcing your digital technology requirements

All things considered, outsourcing your digital technology requirements can give you a competitive edge. IT outsourcing can ameliorate many aspects of your business, such as service quality, timeliness, capacity issues, and transformation change, among others, but it can also come with a few risks.

Although managed IT services can provide your business with several advantages, there are a few potential risks that need to be considered before deciding to outsource. These include:

  • Loss of control – When you outsource your IT requirements, you are giving up some control of your company’s operations. This can be a good thing, as it allows you to focus on your core business, but it also means that you must trust the service provider to do a good job.
  • Security risks – One of the biggest concerns when outsourcing IT is security. When you hand over control of your IT infrastructure to a third party, you are also handing over control of your data, creating security risks if the service provider is not properly vetted and monitored.
  • Dependency – Another risk of outsourcing IT is that your business can become dependent on the service provider. If the relationship ends or if the provider is unable to meet your needs, this can pose a problem for your business.
  • Lack of flexibility – Outsourcing can come with the loss of some flexibility. For example, you may be locked into a contract with a certain service level agreement (SLA) that only allows for a little flexibility.

Despite these risks, outsourcing your digital technology needs can be a smart move for many companies. As well as weighing the pros and cons, it is important to choose a reputable provider that you can trust and to have a clear understanding of your objectives. Making sure you have these considerations in place will help you make the best decision for your business.

What Information Professionals Group can do for you

Information Professionals Group can help your organisation leverage its digital technology and equip your business for growth and stability. With specialist expertise in the application of technology for companies, health and community organisations, government, and more, we understand how complex change can be in a challenging environment.

If you’re looking to outsource your digital technology requirements, you can count on us to deliver what we promise with our Information Professionals Guarantees.

Ready to Grow Your Way? Call 1300-738-054 to discuss your project today.

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