Why and What Do Companies Outsource?

Outsourcing has long ceased to be only the resource of quick and simple delivery of software products and applications to the market. Today outsourcing has acquired a strategic meaning. The current competition on the market has become so intense that wise organizations rely on outsourcing to both gain competitive advantage and expand the global footprint.

By reaching out outsourcing companies, the global organizations seek flexibility and business efficiency, rather than simply lowering the costs. Along with that among the important reasons for outsourcing are:

  • Access to new markets and increased time-to-market
  • Redesign of business processes
  • Improvement of customer service
  • Access to industry expertise and qualified staff.

Having these things covered by an outsourcing software development provider, companies acquire the opportunity to move forward in a more accelerated mode, since most of the ancillary and a certain part of core functions are transferred to the provider.

According to IBM study, “outsourcing clients consistently outperform their peers on key financial metrics, including Selling, General and Administrative (SG&A) expenses, Earnings Before Taxes (EBT), Operating Income and Return on Assets (ROA).”

When it comes to outsourcing core activities, business leaders usually consider more sophisticated options for cooperation. One of them is switching to a different business model. Remote In-Sourcing is one them.

The idea of this outsourcing model is in the creation of remote teams that on business side completely belong to a client while remaining the employees of the software development provider on the logistical and operational side.

The teams are created for software development, software testing, IT consulting, audits and assessments, systems integration, R&D, engineering, technical support, IT training, data processing, and back office support. Remote In-Sourcing offers the way of building custom teams for the client, letting them know exactly who is working on their projects. Essentially, it allows providers to build specialized teams that match clients’ sourcing needs while keeping costs and risks low and talent availability high.

The model improves companies’ outsourcing experience by bringing the following benefits:

  • Risk Prevention
  • Better relationship quality & cultural proximity
  • Cost efficiency
  • Flexibility & scalability

The philosophy of the Remote In-Sourcing model is largely based on building long-term partnerships and a 100% match of client’s needs. The approach has successfully proved its effectiveness and has many adherents. Want to know more about Remote In-Sourcing? Read our white paper or reach us for a consultation .

Read also:

How to Find a Reliable Software Development Provider
Predictive Software Engineering: The ultimate way to deliver working software

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Intetics Inc. is an expert in creation and operation of effective distributed technology teams aimed at software product development, IT support, quality assurance and data processing. Based on a proprietary business model of Remote In-Sourcing®, advanced Quality Management Platform and measurable SLAs, Intetics enables IT rich, innovative organizations to capitalize on available global talent and Intetics’ in-depth engineering expertise. Our core know-how is rooted in design of software products within conditions of incomplete specifications.

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