Information technology(IT) has revolutionized the way businesses work and think. Companies have computerized and digitized their business functions in every way possible to reap the best out of the digital era. Due to this, the need of employing the best IT professionals and resources has become a matter that every company carefully considers and invests its time and money in. The pandemic, budget cuts, and ‘work from home’ situations have further fueled the debate on the question of whether to outsource IT requirements or do it In – house.

When setting up a company in Dubai, with the wide availability and accessibility to the world’s best IT consultants, you can choose between hiring full-time employees for every department of your company, outsourcing specific activities to professional contractors, or combining In - House with Outsourcing for your company’s IT requirements. There are pros and cons to each approach and the choice of the best strategy depends on the IT requirements, the availability of skilled IT professionals in your team, budget, etc.

The pros and cons of both Outsourcing and In House of IT requirements are mentioned below to help you choose the right method to meet your company’s IT requirements.

Pros of outsourcing IT Requirements :

Minimizing operation costs - Outsourcing your IT requirements can help significantly in reducing costs for your company by having to spend less on maintenance, less investment on resources and technology, and no necessity to provide extra facilities.

Saving time - By hiring an outsourcing company you will have the best candidates available to do a specific task for you. This way you’ll have the capability to focus on other activities, while the top professionals take care of the situation.

Maximizing the use of resources - Once you have specialized staff doing their job, you can start improving other areas of your business that require attention, and this will allow you to maximize the utilization of your resources.

Improving company focus - If you’d like to become one of the top companies in your industry, you need to outsource the areas that you don’t manage well. In this way, you can focus on your main business activity and won’t be wasting time in any process that you don’t know how to handle.

Reducing the risk of fraud - This is a risk that many companies face when they decide to handle an operation in-house because some employees might betray the company and this could harm your business in a bad way. To diminish the risk of fraud in some areas, you can choose outsourcing and this will reduce the burden on your organization.

Gaining access to specific skills - Outsourcing to a company can help the company in bridging the skill gap with ease, keep track of new tools & technologies, get access to more varied talent & best practices, find more innovative solutions and gain enough expertise across departments.

Improve company’s productivity - When you have a trustable outsourcing staff there are greater tools and human resources available to increase your company’s productivity.

Focus on your customers - Once you stop wasting time in activities that you can’t handle, you can start developing strategies and dedicate quality time to listen to what your audience has got to say, and this will assist you in improving your business in better and efficient ways.

The cons of outsourcing IT Requirements are :

Hidden costs - There could be some extra costs that you could incur when you outsource your IT requirements. It usually happens when the staffing company and the organization do not have clear and precise communication about the expenses that need to be covered. To avoid facing extra charges, it’s necessary to have a detailed requirement list and demands laid out to the outsourcing company.

Control Issues – When the work is outsourced, supervising the staff or being in control won’t be possible as they won’t be working in-house. Communications would be limited to phone, video calls, or email. This can be a cause of concern if a company prefers greater control and accountability of its working and staff.

No direct hiring – If your preference is in hiring people in person, then outsourcing can be a problem for you since direct hiring isn’t possible when you are outsourcing.

Performance risk - With outsourcing, there’s a performance risk conditioned to external situations. Sometimes delays can happen, and this affects your business. This may happen if you contact a company with a lesser reputation.

The Pros of having an In -house team of experts is:

Knowledge of the business working – The In - house has the direct and best knowledge of the internal and external working of your company allowing them to bring about the best solutions.

Knowledge of the people - Your IT team understands your people, your users, your customers, and your prospects. They understand your business goals and metrics of success.

Know your business setup - Having a help desk in-house has its benefits. In most cases, the In - house team would be having a better understanding of the systems and setup of the IT infrastructure processes of the company and hence the solutions to problems can be gathered quickly.

Availability on site - Your IT department is on-site and provides service for just your company.

The Cons of keeping an In- house team are :

Not having expert knowledge in all areas - Small internal IT teams often get bogged down with day-to-day user support or questions. More than often, this leads to situations where the IT team is left with little or no time for pursuing or implementation of newer technology solutions for the company’s greater good. 

Increased key-person risk – In companies with smaller In-house IT teams, there would always be a key member who has access to all critical information and infrastructure of the company. The person could also be the only source of support for running important business applications, systems, and providing other team members with operational advice. In such a scenario, you need to make sure that the company’s functions are not at risk if the key person decides to leave the company. 

Need support for IT issues outside their area of expertise - IT is complex and multifaceted. No one team member may not have all the skills required in your business. 

As mentioned above outsourcing your IT requirements or doing it In- House can have a significant impact on the way your business works. Hence, time, thought and research needs to be put into making the right choice for your company’s best.