How to Outsource IT Department? Step By Step Guide By Qubit Labs

Oksana Zabolotna
HBD at Qubit Labs

As your business grows, you need to manage it intensively. Your company gets more tech tasks, but you don’t have employees with needed skills, or you just don’t want to extend the in-house team to deal with some issues. So, if you are looking for a cost-efficient way to deal with your tech tasks, we recommend you outsource your IT department. 

This article provides essential details about how it works, what tasks can be covered, and why it is profitable for your business. 

 

What is an Outsourced IT Department?

It is a separate department that you hire from a vendor that handles your IT needs. A third-party managed service provider (MSP) can cover everything from the security of networks to the installation of software and the backup of files. 

How to Choose a Model?

Before you even start looking for the vendor, you should know a few models that can help with the different challenges your company faces. For example, you can choose between IT outsourcing or outstaffing and offshore or nearshore outsourcing models. They all have substantial benefits and challenges, so you should understand your company’s needs to pick one.

Outsourcing the IT department will be perfect if you have a short-term task you need a specialist to cover it. Then you go with an outsourcing company that looks for specialists who will accomplish the tasks. Outstaffing will be perfect if you require a remote dedicated team who will work full-time on your project. You get in touch with employees and manage them directly, which gives you more control and flexibility.

After choosing a model, it is time to select a vendor. If you are leaning towards a wider pool of specialists and cost-efficiency, then the offshoring model will be a good choice. On the other hand, if you want more control, productive communication, and a similar time zone, you can try a nearshore model.

 

Pros and Cons Outsourcing IT Department

Although outsourcing your IT department sounds like a good idea, there are some tangible benefits and disadvantages. Let’s take a closer look at both of them.

 

Benefits of IT Outsourcing Department

  • Best Qualified Experts

Real professionals can cover any tech tasks in your company when you face any issues – an outsourced IT department can quickly improve it. Your vendor will provide the best candidates to cover and enhance your matters needed.

  • Wide Pool of Experts

With outsourcing,  you are not limited to the location of your best candidates. Instead, you can choose the experts you need worldwide. That fact significantly increases your chances of finding great talent quicker. 

  • Cost-Efficient

As was mentioned before, it is cheaper to use an outsourcing IT department than hire full-time experts directly. It also cuts off your cost of providing workspaces and equipment for in-house employees because IT outsourcing services are done remotely.

  • Reduce Risks

When you partner with full-cycle IT outsourcing companies, they are more likely to share the risk of service outages with you and provide disaster recovery and data protection services. It is recommended to include this in the agreement when signing it.

 

Disadvantages of IT Outsourcing Department

You can read the full article by Qubit Labs on why IT outsourcing fails here.

  • Less Control

There’s one factor that stimulates investment in outsourcing. An enterprise entrusts core services to a staff body when using third-party services. Some are uncomfortable with a secondary business managing security or essential functions. If you go with an outstaffing model, you can manage your employees directly, giving you more control.

  • Poor Communication

Long periods between inquiries and conversations are problematic, as the slower the outsourced response, the more services are affected. For example, fast communication is essential when dealing with a security issue. If you’ve outsourced cybersecurity services to a third party in this scenario, the lapses in communication would significantly hinder your business efficiency and extend other problems like downtime. However, if you are going with outstaffing, you get in touch with your team whenever you need, so if you would like to have more corporate calls, meetings, or conferences – outstaffing will be a better option. If so, you choose between nearshoring (when you outsource specialists from neighboring countries) or offshoring (hiring specialists in different time zone).

 

IT Department Outsourcing Services

There are many options of what you can outsource to the IT department. Here you can find the most common services to be outsourced:

  • Application/software development
  • Application support or management 
  • Datacenter management 
  • Data storage
  • Disaster recovery (DRaaS)
  • Email
  • Infrastructure – hardware, software, and network installation
  • Networking and communications 
  • Security – virus, spam, and other online threat protection 
  • Technical support or help desk
  • Telecommunications 
  • Web development/ hosting 

 

Step by Step Guide on How Outsourced IT Department Works 

  • Step 1: Define Your Goals

The first and essential step in setting up an outsourcing IT department is to decide if you want to go with outsourcing. Understand what tasks and goals should be covered, how many new employees you need, and how long. 

  • Step 2: Define Tasks to Delegate

Based on your tasks and the model you choose, your potential vendor will give you the price for covering it and provide you with your future workers’ salary and service fees. 

  • Step 3: Choose the Right Model

If you face short-term issues in your company – choose full-cycle software development company. If you want full-time workers to cooperate with but don’t want to extend the in-house team – choose outstaffing company, which will provide you with remote specialists.

  • Step 4: Choose and Hire a Vendor 

Choose IT outsourcing location, make a research on outsourcing/outstaffing companies, check reviews, case studies, communicate with a manager and make a final decision.  Make sure the vendor’s service price suits your budget. Before choosing one, consider your budget and how much resources you are willing to spend on service fees and workers’ salaries. Outsourcing companies will provide you with the prices after you give your requirements. 

  • Step 5: Provide Task

Provide your vendor with all essential information and tasks that need to be done. More information you provide – it will be more accessible for your vendor to find the right specialists and deal with your issues.

  • Step 6: Be Clear About Your Expectations

Be precise about your goals and expectations when communicating with your vendor. Your tech tasks should be clear and accurate. Answer all additional questions from your vendor’s side as quickly as possible so that the outsourcing process will be smooth.

 

Which Companies Need an Outsourced IT Department?

  • If You Need to Extend Your Team

New tasks and goals always lead to a skill gap and new positions in your company. An outsourced IT department will be a great idea to extend your team quickly and smoothly to turn these challenges into benefits. If you have short-term tasks, but don’t have the right specialists to deal with them – give them to an experienced outsourcing company. 

  • If You Want to Cut Off Extra Costs

Instead of researching and spending much more money and time on direct hiring, you can outsource your IT department with the best talent. You don’t need to devote cash to workspace and equipment. 

  • If You Want Easy Scaling

As soon as new positions appear in your company and new tasks have to be covered, it is easy to scale your IT department with new candidates in no time. If you choose outstaffing – your vendor will provide you with the new specialists you need as soon as possible.

  • If You Want Work With Professionals

Working with a suitable vendor will give you access to the best tech talent to scale your business faster. So choose the vendor which you feel the most comfortable with. If you decide to go with outstaffing – Qubit Labs has long-term experience building a dedicated team of real professionals from top tech destinations.

 

Final Thoughts

Having an outsourced IT department can quickly boost your business and fix any software issues you face with the help of a strong tech team. However, like every business, the outsourcing IT department has problems and challenges. So, choose a vendor with significant experience to avoid misunderstandings and risks. If outsourcing doesn’t fit your business needs, Qubit Labs will help you get the best experience from IT outstaffing.

Qubit Labs is an outstaffing company with 10+ of experience and many successful projects. We hire diligent IT professionals from the top tech hubs in Eastern Europe and Central Asia, mainly in Ukraine, Poland, Moldova, Bulgaria, Romania, Georgia, Kazakhstan, and Azerbaijan.

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Oksana Zabolotna
HBD at Qubit Labs

HBD and Head of Partnerships at Qubit Labs. Oksana is proficient at Search Engine Optimization; performs as a speaker for international tech conferences; author of webinars and guides on peculiarities of remote recruitment, top markets for hiring IT experts, and latest tech trends. Oksana is one of the partners of Women in Tech Ukraine – large-scale social project created to increase the number of women in IT industry.