The survey shows that outsourcing has become a strategic means for enterprises to improve their core competitiveness, reduce operating costs and consolidate market share.

Outsourcing services save labor costs, such as wages, insurance costs, housing accumulation fund, transportation and communication costs, other welfare costs, paid vacation benefits, human resource management costs, loss of staff turnover, etc. In order to meet the needs of business objectives, outsourcing urges enterprises to pay attention to their core business and focus on their core competitiveness, which is conducive to repositioning enterprises in the constantly developing business and technical environment, which is the fundamental reason for IT system outsourcing.

IT manpower outsourcing: saving costs and cutting expenses

Compared with the internal information technology department, outsourcing service providers can provide services at lower cost due to scale effect and other reasons.

Compared with the exponential growth of information technology performance, outsourcing can change the information service from variable cost to fixed cost, avoid the surge of cost with the expansion of enterprise business, maintain the linear growth of information technology budget, make the cost easier to predict and control, and avoid the phenomenon of "IT black hole".

IT manpower outsourcing: improving finance

Some financial considerations will make the use of outsourcing particularly attractive.

Through outsourcing, it can provide enterprises with the opportunity to liquidate their intangible information technology assets, and help organizations rebuild their information system budgets, thus improving the balanced statements of enterprises and avoiding the uncertainty of their future investment;

By outsourcing business units that can no longer create value, or handing over equipment and fixed property to outsourcers, organizations can get a cash flow, thus freeing some resources for other purposes (such as strategic investment);

The investment of outsourcing information system can avoid continuous or large amount of capital investment in the future;

Outsourcing transforms fixed-cost business into variable-cost business, which is conducive to the flattening of enterprise scale organizational structure;

It can also turn a business with mostly fixed cost into a business with variable cost.

Pay attention to core competitiveness

IT service outsourcing can not only improve the IT service and responsiveness of enterprises, but also make enterprises pay more attention to their core competitiveness.

Outsourcing general and daily information services can enable the IT department of an enterprise to focus on activities and applications that can provide real value to the enterprise.

Outsourcing general IT technology and its supporting functions and applications to service providers can enable enterprises to concentrate on development and better meet the needs of customers.

By outsourcing some IT services, we can reduce the burden of some information services, lighten the structure of IT departments and pay more attention to internal IT personnel, thus helping enterprises to complete value-creating projects and provide constructive information planning, which will greatly improve the performance of IT departments. Therefore, outsourcing IT services may be of strategic significance to enterprises, which can enable enterprises to focus on the core competence supported by information technology.