It has become almost essential for many small and medium-sized businesses to outsource their IT needs. This is because, in a world of rapid technological development, it is imperative to constantly improve your IT systems in order to professionally compete with your industry rivals. As a result, companies find themselves having to ensure that their networks and servers are running smoothly, their technology is up to date and that they are well-prepared for any cyberattacks.

Although it is possible to create an internal IT department to meet these needs, many small and medium-sized businesses find it too expensive and/or inefficient, with outsourcing being the preferred choice. However, should a business outsource their IT needs abroad, or should they stick to an external local business? Well, here are some of the pros and cons of outsourcing your IT needs abroad:

PROS:

1. Economies of scale

By outsourcing your IT needs abroad, it is likely that the multinational company you are dealing with is large in size. As a result, this company is likely to benefit from something called “economies of scale”. This means that due to its sheer size, the company is more productive than its smaller counterparts due to its contacts, experience, large workforce, expertise and more. This will keep its prices down, but quality up. As a result, you’ll likely be getting more for your buck.

2. Foreign labour wages

If you’re living in a developed country, then it is highly likely that wages for IT specialists are high. However, by outsourcing your IT needs to India, for example, you will be paying a lower amount for the same work, while also supporting the development of a poorer country. While this is seen is a “pro” by many, some may consider it immoral.

CONS:

1. They may be unaware of local needs

Foreign IT companies may not be as well-versed or aware as their local competitors when it comes to understanding specific local needs, laws, or the IT issues that specifically affect your country. For instance, they may be unaware of the prevalence of power cuts, or of the specific laws regarding IT transparency. In this case, local companies may prove better.

2. They may not have “on-the-ground” staff

When hiring an international IT company, it is often the case that no staff member will be physically present to analyse your IT situation. This can be an obstacle in their work, and also in communication. It is very unlikely that a local company would be unable or unwilling to physically send a member of staff to you.

3. The profits go abroad

Unlike local companies, the profits that are made by international companies are likely to go abroad, rather than be reinvested in your country’s economy. For some people, this may be an ethical issue.

If you are interested in outsourcing your IT needs, be sure to check out IT Support provider Netzen Solutions Ltd.

Catherine Gomez