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IT Outsource: Which Business Functions Are Better To Delegate And The Best Outsourcing Hubs?

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One way to optimize costs when starting a business is to outsource tasks. It allows not hiring expensive specialists in the staff of a newly created enterprise but attracting them to perform specific tasks. Large fixed costs are then converted into smaller variable costs. Of course, not all and not always – but many and often. Another big plus of outsourcing is the ability to improve business processes due to the expertise of the involved specialists.

Best Outsourcing Hubs in 2022-2023

1. UAE

The UAE is the most technologically advanced country in the Middle East and Dubai is the most technologically advanced city in the Middle East. That is why the UAE authorities are striving to transform the structure of the country’s economy, given the growing demand for outsourcing companies and the IT sector as a whole. The UAE government is developing numerous innovative plans to make Dubai one of the most developed and intelligent cities in the world. It has several free zones associated with the IT sector.

Today you can open an IT company in Dubai Outsourcing City, Dubai Internet City, Dubai Technopark, or Dubai Silicon Oasis. It is not surprising that in 2022 a huge number of people are moving to Dubai: they transport businesses and families, rent apartments and rent luxury cars, which, by the way, have become a more popular mode of transport. In general, car rental has become available not only for expats, but also for ordinary tourists who want to hire a car in order to drive around a luxurious city in luxury rented car. It doesn’t matter if you are eager to drive a car for a day or a month – specialists from car rental can arrange everything you need for that experience.

2. India

India is perhaps the first country that comes to mind when you hear the term “outsourcing”. There are good reasons for that. India is the second largest English-speaking country in the world, making it an ideal choice for US or UK employers interested in outsourcing. Their education system is also strongly tied to mathematics.

3. Brazil

Brazil is India’s main competitor in outsourcing due to similar rates and better geographic location, reducing time zone differences and communication problems. Companies from all over the world choose Brazil for their projects because of its: stable political and economic climate, proximity to North American countries, and first-class technical universities.

4. Ukraine

Ukrainian companies offer quality software development at a reasonable price. In particular, 11 Ukrainian companies were included in the list of 100 best IT outsourcing companies in the world. Thanks to this, Ukraine is among the best countries for IT outsourcing not only in Eastern Europe but also in the world.

5. Poland

Poland is an attractive country for outsourcing, primarily due to a large number of competent IT specialists (more than 250 thousand specialists). The stable growth of the information technology market annually (by 5-10% on average) also attracts customers from all over the world. Large information companies trust Poland and actively place their subsidiaries there.

Which Processes Should be Outsourced?

In general, finding a single list of divisions will not work. However, companies that have been operating in the same area for a long time adhering to the following classification of outsourcing types:

  • Durations – temporary (installation, commissioning of equipment; software setup) or permanent.
  • The type of involvement of personnel and resources – internal and external. The first option is suitable for those enterprises that do not have their own servers, and the second for those who seek to reduce the cost of maintaining and maintaining the information infrastructure.
  • Completeness of processes – strategic, functional, and resource. With resource outsourcing, some of the out sorcerers’ functions come down to providing personnel to the customer, with functional outsourcing, some of the specific functions for operating and maintaining the customer’s infrastructure are transferred to the supplier, and with strategic outsourcing, IT infrastructure management is completely the responsibility of the contractor.

The primacy of care is critical and routine. In the latter case, the outsourcer takes on some non-urgent everyday tasks. In critical outsourcing, the counterparty performs urgent and important tasks.

Conclusion

Involving external contractors allows you to unload the main project participants and the manager, and outsourcing allows you to focus on your core competencies – on what can bring money, and ensure that the break-even point is reached. We hope that this article helped you decide or make sure that you have already made the right decision to resort to outsourcing and increase the productivity of your business.

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