Undoubtedly, technology is critical for the sustained growth of your business. The more complex a business becomes, the more specialized its needs become. Due to the increasingly complex technological environments, enterprises need more highly trained tech experts to maintain and manage the infrastructure. However, choosing whether to keep your IT function in-house or outsource it is one of the most challenging business decisions. 

In this article, we have tried to make that decision process easy. Let’s dive in.

In-house IT

Hiring a dedicated IT team, fully abreast with your IT infrastructure’s ins and outs, has its own set of advantages.Pros 

  • Greater control: Since your IT resources are on-site, addressing your technological requirements, you have greater control, and you can leverage their expertise with more ease.
  • Complete knowledge of your business operations: Since your in-house staff is armed with a complete understanding of the know-how of your IT infrastructure and fully invested in your business’s success, they’re relatively more motivated to create out-of-the-box technical solutions. 
  • Speedy resolutions: Your in-house resources can quickly respond if any major technical issue arises. Different teams grappling with technical problems can quickly contact the IT team, get their issues addressed, and reduce downtime effectively.

Cons

  • Overall High Costs: An in-house IT team is a more expensive resource pool. Hiring a new IT resource includes the cost of their payroll, benefits, onboarding, and regular training for advanced technologies. 
  • Time-intensive Hiring Process: Talent hunting of an in-house IT team is cumbersome and time-consuming too – interviewing multiple candidates and negotiating with them. If an employee leaves the organization, the whole process has to be rinsed and repeated.
  • Support requests might multiply in the absence of an IT resource: In case an in-house IT resource takes some time off, support requests and important software patches might stack up, resulting in significant losses.
Outsourcing IT

Pros 

  • Availability of global technical talent pool: Once you decide to outsource, you have the advantage of hiring the technical experts from a big global talent pool, suitable for your organizational needs at relatively lower costs in a much shorter time frame.
  • Round-the-clock accessibility: Unlike an in-house IT resource who may take time offs, an outsourcing vendor ensures 24/7 availability of technical expertise to address your IT needs.
  • Superior quality services ensured: Since it’s a competitive space, an outsourcing vendor ensures that your business gets superior quality technical resolutions quickly. It will ensure that you’re delighted with their technical expertise and engage with them for longer times as a client.
  • Cost-effective technical expertise: Typically, an outsourcing vendor charges on a fixed budget monthly cost. So, you can reap the cost benefits as you aren’t required to pay extra to train them at the advent of latest technologies regularly, or even when they fix your technical issues at nights, weekends, or other holidays.

Cons 

  • Data Security issues: Your business is at the risk of confidential documents and Intellectual Property being exposed. It’s recommended that you do your due diligence before you hire an outsourcing IT company.
  • Different time zones: Often, the outsourcing companies operate off-site. Hence it’s not uncommon to run into communication issues. So, it’s important to find synergy and ensure that at least a few hours overlap for effective communication between both parties.
How Should You Decide on the Topic of IT Resourcing?

The correct answer is that it depends on your specific business objectives, needs, and current growth stage.

As business priorities evolve with time, it’s imperative to critically examine the core capabilities and tech capabilities and then make a well-informed business decision, factoring in all important factors.

Global Development Center with DxFactor

When it comes to managing IT resources, a business must choose from in-house vs. outsourcing options in such a way that it’s able to focus on its mission-critical business objectives without having to stress about the technology resources side.

We, at DxFactor, have built the industry’s first “Build, Operate and Transfer (BOT) Global Resource Centre,” where we do all the heavy lifting and ensure that your IT needs are addressed effectively and efficiently. All you need to do is invest your focus, energy, and time on projects and businesses that demand your utmost attention.

Our BOT model is divided into three phases:

  • Build: This phase involves an in-depth analysis of your business requirements and challenges to helps us build a detailed business case. We then hire the right talent, arrange for dedicated office space, set up the infrastructure, etc., for your project. This phase takes ~2-3 months. 
  • Operate: We manage entirely day-to-day operations, ensure that those are aligned tightly with your business goals and processes, and present daily/weekly/monthly/quarterly reports. This phase may take ~1-2 years until a stable and fully operational team is set up.
  • Transfer: We then legally transfer the entire operational development team as a foreign subsidiary to your organization. We also transfer 100% of IT operations, including intellectual property, knowledge base, and other assets.

Interestingly, one of our clients, a fast-growing cybersecurity company, achieved operational stability in less than 60 days and saved more than $1 million with this model.

We ensure that our BOT model provides your business the best of both worlds of in-house and outsourcing. We can take care of the end of your operation to end while keeping you in the loop so that the entire process is hassle-free and devoid of any intellectual property risks. 

You can contact us to help you deploy our BOT model, address your IT needs seamlessly, and supercharge your business growth.