Companies in various industries use external IT service providers and suppliers because they themselves lack the internal IT expertise and capacities. They then benefit from high class services and at the same time can focus their resources on their core competencies.
IT companies in turn have this expertise and extensive experience and can then sell them to their customers as services or products. Nevertheless, IT outsourcing can also offer these companies numerous advantages and possibilities:
- Streamlined, flexible and powerful corporate structures.
- Concentration of own resources on tasks that need to be processed internally.
- Stronger position against larger competitors when competing for more demanding projects.
- Competitive advantages through more flexibility and a wider portfolio.
- Expert knowledge in rarely needed or new technologies.
- Lower hourly rates, which can be passed on to customers or used to optimise the internal cost structure.
- Flexible adjustment of own capacities to changing customer and project requirements.
- Reduced overhead and fixed costs.
It is clear that outsourcing for IT companies does not mean the outsourcing of core competencies. Rather, it improves their market position and their presence to customers.