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The Advantages of Outsourcing IT

Outsourcing, or hiring workers in other countries to do jobs formerly done stateside, is becoming increasingly popular

By Ginger Yapp, eHow
Nov 07, 2012
Outsourcing, or hiring workers in other countries to do jobs formerly done stateside, is becoming increasingly popular for United States employers, especially where information technology (IT) departments are concerned. When a company outsources its IT department to a country like India, the company can expect to save money, hire a more-than-capable staff and have more time to focus on the rest of its business needs.

Cutting Costs
Outsourcing an IT department saves companies money in several ways. First, there is a willing and skilled population of workers proficient in English, who are able to do the same job as an American IT worker for a fraction of the price. Similarly, because work laws are often more relaxed in other countries, U.S. firms can cut costs on insurance, sick pay, taxes and other expenses they would have to pay were they to employ U.S. workers.

Focusing on Other Business
Instead of worrying about IT-related matters, U.S. companies can leave IT problems to their overseas counterparts, who are skilled in handling and managing IT issues. In 2010, big companies like Disney and Warner Brothers announced plans to disband their in-house IT departments, outsourcing the jobs overseas. Because Disney and WB are not IT companies, outsourcing their IT needs will allow them to focus more time on their main areas of business.

Skilled, Competitive Work Force
The standards for hiring IT workers overseas is higher than in the United States. While U.S. IT companies operate around level two or three of the IT service capability maturity model, Indian IT firms operate at level five, the highest possible level. Impressive IT skills coupled with English-speaking proficiency makes Indian IT workers an attractive option to U.S. businesses. Plus, being able to hire workers as needed, instead of full-time or year-round, provides flexibility to employers, who contract foreign IT workers through IT outsourcing companies.

Read more: The Advantages of Outsourcing IT | eHow.com