Organizations are outsourcing many business functions, from recruiting to purchasing to legal and compliance processes. In today’s tight job market, outsourcing can be an effective way to gain needed skills while allowing existing staff to focus on core business functions.
IT has long been a target for outsourcing, for multiple reasons. Many organizations consider it an essential but non-core function, and lack the in-house expertise to handle it effectively. The persistent and growing IT skills gap has added greater impetus to the outsourcing trend.
Outsourcing isn’t always cost-effective, however. Many organizations choose their outsourcing agency based on the lowest dollar amount. That doesn’t mean it’s going to cost less to get the work done. An organization may be able to hire three junior-level individuals for the same rate as one senior person, but it ends up taking more staff hours to accomplish the same work. Over time, it costs more and takes longer to complete projects.
The same thing happens with outsourcing. Just because a company has an aggressive bill rate doesn’t mean that the people there will be effective at meeting company objectives.