What is IT outstaffing and what advantages does it offer?

IT outstaffing company

More and more companies are taking advantage of IT outstaffing: Instead of providing IT services internally, they are flexibly purchased from an IT service provider. This ranges from cloud services to cybersecurity to support services. Learn exactly how IT outstaffing works, what advantages it offers, and how to find the right provider.

Definition: What is IT outstaffing?

In IT outstaffing, IT services that have so far been provided internally are handed over to an external service provider. These IT service providers offer hosting and cloud services, develop software or provide a company's telecommunications.

The cooperation between the company and the IT outstaffing company is regulated in the service level agreement. In this case, one speaks of a personnel or asset transfer.

In the case of single-vendor outstaffing, you work exclusively with one provider, and with several providers that cover different IT segments, in the case of multi-vendor outstaffing. In addition, outstaffing can take place onshore on-site, or offshore abroad.

There are three levels of IT outstaffing:
  • Infrastructure outstaffing: When server services, cloud services, data centers, etc. are outsourced.
  • Application outstaffing: At the application level, for example, software solutions, website development, or shop systems are released from your own company.
  • Business process outstaffing: At this level, for example, accounting services or online marketing services are obtained externally.

The advantages of IT outstaffing

Outstaffing IT services offers your company several advantages and ensures greater competitiveness.

Meet the shortage of skilled workers

According to a survey by the industry association Bitkom, 83 percent of all companies experience a shortage of skilled workers in the field of IT. The situation is particularly difficult for SMEs: Many large companies use their awareness to secure the best applicants at an early stage. IT outstaffing can be a solution here. A corresponding IT service provider gives you immediate access to a large number of well-trained IT specialists, for example, if you want to hire vue developers. This saves you a lot of time when looking for applicants.

Focus on your core tasks

IT outstaffing can relieve your employees by giving up time-consuming routine tasks. This applies, for example, to the provision of infrastructure and workstations, e-mail operation, monitoring, or technical support. This will give your team more capacity to focus on value-added projects.

Intercept load peaks

Your workload is not always constant. For example, seasonal load peaks can occur. IT outstaffing takes this fact into account: If necessary, you simply buy more IT support. At the same time, you keep your personnel costs low because you only pay the provider for the work actually needed. You don't have to hire additional employees who are not needed for the rest of the year.

Ensure more transparency

Many services of IT outstaffing providers are offered as standardized products. In this way, costs can be better planned in advance. Consumption-dependent services are accurately logged, which also ensures transparency here. In addition, based on their experience, providers can predict very precisely what certain processes will cost.

Stay up-to-date

If your own IT constantly works on the edge of its capacities, many things remain. This applies in particular to routine tasks such as installing software updates or creating backups. A service provider performs such tasks promptly because he has appropriate workflows. It also guarantees the high availability of critical systems to avoid production downtimes, for example.

Keep up with the future

New technologies such as the cloud, big data, or the Internet of Things are currently changing all sectors of the economy. Customer requirements are also subject to constant change, for example in terms of time-to-market expectations. Besides, there are new legal demands for data security.

To remain competitive here, companies must initiate appropriate changes. However, this is often difficult because the know-how is lacking. IT outstaffing providers and managed services providers usually have this expertise. You implement your digital strategy, keep an eye on the markets and react immediately to legislative changes.

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