As the competition heightens among IT service providers who have the capabilities to handle a range of tasks for their clients, the factor that will influence a client to choose a provider will be based on not just cost efficiencies but on over-all business efficiencies and priorities. Another vital aspect will be the flexibility and agility that the provider can offer.

The recession has a lot of IT heads trying to accomplish more with less or at least achieving the same amount of work on smaller budgets. The business must decide on which areas of the business are non-core and can be handed over to an off-shore service provider. You will however, have to take into account all factors before you adopt an off-shoring model as only cost reduction is not enough to justify moving operations off-shore. A key factor to be borne in mind is the security and integrity of your information and procedures involved in ensuring that the same is protected. Companies need a value proposition that is multi-dimensional and a service provider who can deliver a strategic, flexible, global solution. In addition, you must keep in mind that due attention is given to planning and the stages of selecting the provider, transition of processes and the ongoing management of the off-shore contract.

The most obvious advantage of using off-shoring is that there are substantial cost savings due to lower business equipment purchase and maintenance costs. There will be incremental cost advantages over traditional outsourcing which in turn will free up your budget and assist you in cost cutting exercises. From an operational perspective, you will find that the operational details and most management hassles are taken over by your service provider. This will enable you to get better margins on products and services as your costs are lower. You will see that having dedicated and experienced vendor management will allow for greater focus on the function and faster expansion/ up-scaling of the overall business as & when required.

Off-shoring improves your company margins and can therefore unlock better value for you. It reduces the complexity of management in areas which are not a core focus of your business. You can then focus more on your key areas, leading to better results. It makes it possible for you to free up management time and put your company on the fast track in growth to compete better in new markets. It vastly lowers time spent on personnel management, including personnel hiring and attrition liabilities. You get maximum cost advantages, which lowers overheads and creates better pricing and margins, giving the individual responsible a higher profile in the company. And last but not least, off-shoring creates greater shareholder wealth.

Allied specialises in providing IT off-shoring services for leading companies across the globe. Allied is the preferred partner of choice of many as we provide high quality, cost effective off-shore IT services through flexible engagement models.

Author's Bio: 

Allied offers IT Outsourcing Services and IT Managed Services to small and medium-sized businesses through flexible engagement models. Allied specialises in high quality, cost effective IT support services and is the preferred partner of choice for many companies.