Application-Outsourcing-benefits

How Application Outsourcing can benefit business expansion

There is a constantly rising trend among businesses around the world nowadays to opt for a third-party IT Service Provider. In fact, it is undeniable that Application Outsourcing can bring about great benefits to client companies. From reduced labor cost to maximized business value, here are the ways IT Outsourcing can help a business thrive in the evermore competitive market.

According to Garner IT Glossary, Application Outsourcing can be defined as an outsourcing arrangement for a wide variety of application services including new development, legacy systems maintenance, offshore programming, management of packaged applications, and staff augmentation.

Application-Outsourcing-Definition

Today, more companies are choosing IT Service vendors for digital transformation than ever before. Clearly, Outsourcing can provide businesses with a competitive edge in today’s fierce market. Here are the most prominent ways that Application Outsourcing helps its customers to achieve technological breakthroughs in the 4.0 Industrial Revolution.

1. Cost efficiency

From a business perspective, cost-cutting is always on top of the list of priorities. According to Glassdoor, by June 2020, the average salary for an IT Specialist has reached more than $51,000.

With Application Outsourcing, companies can eliminate the need for permanent staffing of IT experts. Instead, they can negotiate appealing contracts at the best price possible with IT service providers. These vendors tend to offer package deals for designated short-term projects at a much more economical cost than hiring an IT team with only occasional tasks.

Application-Outsourcing-Cost-Reduction

Furthermore, Outsourcing your IT teams also minimizes the infrastructure cost, allowing companies to downsize their offices as the developers can work offshore. Businesses are also no longer required to invest in expensive training and recruitment of this workforce. These needs are usually taken care of by the Application Outsourcing vendors.

As a result, client companies can allocate these expenses to other crucial functions of their business such as brand image, research and development, and scale-up strategies.

2. Technical expertise

For businesses outside of the tech market, finding the right team of skilled IT employees might be too big of a task. Outsourcing companies, on the other hand, specialize in finding and recruiting IT talents with well-rounded skill sets that can cater to any customer demand. It is also the responsibility of these vendors to continuously train and update their members with the latest technologies in the market, as well as come up with new innovations to attract customer’s interest.

Technical-Expertise

Moreover, Outsourcing your application support also means that your IT performance, including employee turnover or staff absences, will be supervised by a professional unit. This translates to consistent and continuous support with a higher standard of quality than if in-house tech teams, ensuring your systems are live and operational through a fixed contract.

In short, the experienced background in delivering projects along with complex knowledge and understanding of the domain is one reason Application Outsourcing is the rising trend in the tech field nowadays.

3. Flexible and Timely Services

In our previous blog on Outsourcing models, we have introduced the two main options for businesses when deciding to outsource their IT support: project-based and team-based models. No matter what you are looking for, whether it is a long-term or short-term project, IT vendors can satisfy your need with a large array of products and services.

Outsourcing-models
Different outsourcing models to satisfy customer’s demands

As opposed to the traditional IT staffing, Application Outsourcing allows you to have the ability to take on third-party support when necessary and release them if their participation in your company is no longer required. An emerging trend in IT service delivery is that client businesses tend to take on multiple providers at the same time, each with majoring in a different field of the digital world so that they will be able to keep up with varying priorities effectively.

Additionally, Outsourcing companies mostly work through legal contacts, with a fixed deadline that obliges vendors to deliver services and products on-time. This is synonymous with better control and minimization of the lead time it takes for a product to reach the end-user. Thus, organizations are able to move at a faster pace in converting their ideas converted into reality, thereby improving their image in the end-user’s eyes and consequently their business value.

Conclusion

With all the aforementioned benefits, it is no surprise that Application Outsourcing is witnessing an exponential growth in the IT market with new vendors being established every day. This is both an opportunity and a challenge for businesses. Companies must differentiate between high-quality and low-quality vendors and negotiate contracts only with specialized firms to gain the optimum benefits.

CMC-Tower

With our 4-C Core Values: Creativity, C-speed, Commitment and Customer Centricity, CMC Global is proud to be the leading company in Vietnam for IT Outsourcing with two consecutive Sao Khue Awards. In addition, CMC Global has had many experiences in carrying out projects on a global scale with customers from all around the world. In terms of application development, one of CMC Global’s greatest pride is our collaboration with the Korean Pharmacy Group in software development and maintenance. In this project, our team of 82 personnel had successfully satisfied the stringent requirements of the healthcare industry and laid a firm basis for more future co-operation with Korean partners.

Here at CMC Global, we are determined to always create and deliver the best technological breakthroughs to our domestic and international customers.

Read more on CMC Global’s products and services and equip your business with the latest IT solutions here.