Recent reports cite that onshore outsourcing has undergone a surge over the past few years. In the case of call centers, onshore outsourcing has seen increases of 35% in 2010, 49% in 2013, all the way up to 53% in 2015. Additionally, according to the Bureau of Labor Statistics and CompTIA, the United States’ IT industry has added a whopping 32,100 new jobs just this past June. If this trend continues, it’s likely that 2017 will be another big year for onshore outsourcing.
That being said, it’s important that your enterprise evaluates the benefits that domestic outsourcing can bring. To do so, all you’ll need to do is start looking at the present state of the industry.
Offshore IT Outsourcing
Originally, enterprises found offshore IT outsourcing to be an extremely beneficial business relationship. A classic example of this would be the IT support call center. If you call a major technology company like Microsoft, you’re likely to be transferred to a call center on the other side of the world. There are a couple of reasons that an enterprise outsources to offshore companies. One is the cost of operation. U.S.-based companies that provide outsourced services are often more expensive than non-domestic businesses of the same kind.
A prime example of this is the software engineer. In India, the median salary of a senior software engineer is $10,000. When you consider what the cost of doing business with domestic developers, the savings speak for themselves. Offshore outsourcing allows organizations to find top talent regardless of their geographical location, which is of major benefit for enterprises that may exist in economically-depressed regions.
In stark contrast, offshore outsourcing has significant drawbacks. Businesses routinely cite a decrease in customer satisfaction as one of the most prevalent problems with outsourced offshore IT support. The reason: it can be difficult and sometimes frustrating to work with others who may not speak English as their first language. Furthermore, collaboration can grow difficult when outsourcing to offshore workers due to conflicting work schedules and the reliance on Internet-based interfaces for communication. While online tools such as email, video conferencing, and instant messaging have made great strides in bridging this gap, there’s something about sitting down at a conference room table and hashing out plans in person that can’t be attained with offshore outsourcing.
Onshore IT Outsourcing
Certain trends have led enterprises back down the path of onshore IT outsourcing. In particular, automation technologies and self-serve solutions have reduced the amount of support required for many organizations. If enterprises can automate a task, chances are that they will in order to cut down on costs and to improve operational efficiency. Thus, the need for outsourced assistance may be less than it once was. This leads to an important trend that can be seen in the IT industry: enterprises using innovative technologies to better support their customers, while saving capital and improving operational efficiency.
The many issues that plague offshore outsourcing are significantly reduced through onshore outsourcing. While a provider based in the United States may be somewhat more costly, automation technology has given enterprises the ability to free up portions of their IT budgets for quality local support. Those who need assistance can communicate easily with trusted technicians, either remotely or in-house. Offshore outsourcing providers can’t offer the latter, which may be a vital variable toward resolving tensions or serious problems regarding technology maintenance. All of these benefits indicate a focus on one thing: quality of service rendered.
The Solution: Co-Managed IT
Depending on your enterprise’s budget, size, and specific needs, you may consider offshore outsourcing to be a viable option. Yet, the fact remains that due to emerging technologies like automation and self-assistance applications, there is more room for flexibility in the IT budget. As we’ve already mentioned, there are a plethora of opportunities to improve value and quality of service by utilizing domestic companies. The question, of course, lies in how an outsourced solution meets your organizational needs, as well as the consideration of what services are best outsourced to an onshore provider.
In particular, a co-managed IT service model can be of great benefit for enterprises that already have an internal IT department. We’re sure you’ve felt the strains placed on your techs due to requests for support and the ever-daunting task of innovation. A co-managed IT model can let a third-party provider handle the roles of a help desk so that your techs can focus on implementing new solutions, or vice-versa. The idea is to assist your enterprise’s internal IT department in any way required, so as to improve operations and foster a collaborative, innovative relationship between ourselves and your internal team.