What is IT Outsourcing?

August 18, 2021

4 min read

IT outsourcing refers to the practice of hiring individuals or companies outside of the business to handle various IT functions. Whether you need managed cybersecurity, 24/7 monitoring, or tech support, IT outsourcing offers a range of benefits for companies large and small.

With 66% of businesses of over 50 people turning to outsourcing in one form or another, there’s never been a better time to engage outside IT support.

We’ll be examining the varieties of outsourcing these businesses use, as well as some of the most commonly outsourced IT services. To learn more about why you should outsource your IT, visit our article 9 Benefits of Outsourcing IT Support.

Different Kinds of IT Outsourcing

Not all managed IT outsourcing is the same. In fact, there are three types of outsourcing in the industry.

Domestic Outsourcing

Domestic outsourcing—otherwise known as onshore outsourcing—is when a company enlists the help of a service provider in the same country as their business. For example, an LA-based apparel company might outsource their cybersecurity needs to an organization in Atlanta, a city with a lower cost of living.

Contracting out IT services within your own country allows you to save money by taking advantage of nationwide wage variations, all while avoiding issues such as time zones and language differences.

Offshore Outsourcing

Also called offshoring, this type of outsourcing strategy refers to the hiring of a dedicated team (or individual) from another country. In general, offshore outsourcing means a time difference of at least five hours. A US company outsourcing their tech support needs to an office in India would be an example of offshoring.

Businesses often turn to offshore outsourcing to cut down on expenses, thanks to the lower labor costs in many countries around the world. This comes with the drawback of reduced expertise, different time zones, and language barriers.

Nearshore Outsourcing

Nearshore outsourcing falls somewhere in between offshoring and onshoring. While offshoring involves working with companies in distant countries, nearshoring covers the hiring of services in a nearby nation. As an example, a startup in France might engage an outsourcing company from neighboring Spain to handle its disaster recovery.

Nearshore outsourcing has all of the advantages of offshoring with fewer cultural differences and time zone issues.

Commonly Outsourced IT Solutions

Below are some of the many responsibilities that an outsourcing contract can take care of. Keep in mind that this list is far from exhaustive; instead, it should give you an idea of the near-endless possibilities of IT outsourcing.

Technical Support

Because the average worker may not have a perfect grasp on the technology they use every day, a dedicated tech support team is a must—especially in larger companies. Outsourced technical support is particularly useful, as your team can call upon them at a moment’s notice and don’t have to worry about a team that is already taxed with their own initiatives.

Monitoring and Disaster Recovery

In most workplaces, network outages pose serious ramifications. This is especially true in critical industries like healthcare and government. By outsourcing some of your systems monitoring to an outsourced managed office, you can ensure your data and processes are monitored 24/7. Similarly, an outsourced team can aid in disaster recovery if trouble should occur while your team is out of the office.

Web Development and Maintenance

Many companies will now outsource the creation and maintenance of their website. Because web development is often a one-time expense, it can be completed on a single contract through project-based outsourcing. However, as websites are rarely static, it’s more common to see businesses employ a dedicated team for web updates and site upkeep.


Companies with both internal and customer-facing telecom services may find it valuable to outsource their telecommunications needs. Telecom outsourcing can mean anything from VoIP setup to fixed wired services to telecom bill processing.


Considering that security is one of the top issues facing today’s businesses, choosing a reliable external contractor for cybersecurity is highly recommended. While an in-house security specialist is feasible for larger organizations, the cost can be prohibitive for smaller businesses. However, this doesn’t make security any less significant.

If the terms multi-factor authentication, next generation firewall, or real-time privilege management feel foreign to you and your team, outsourcing your company’s security needs may be in your best interest.

Data Center Management

Data centers are secure locations where computer servers are stored. These servers handle the storage, processing, and distribution of large quantities of data.

As a company grows, a data center becomes more and more valuable. A data center manager’s duties include contingency protocols, updating hardware and software, and more. It’s a demanding and highly-skilled job, making it an attractive one to outsource.

Data Migration

The future of data storage and processing is in the cloud. However, moving an entire business over to cloud computing can be easier said than done, and a poorly managed cloud migration can pose security risks and disrupt business. Engaging a dedicated external team to handle your data migration is a surefire way to avoid any serious issues.

When you contract out your cloud migration, look for a company that offers a cloud readiness assessment, a platform review, and a customized migration strategy made for your business.

What are IT Outsourcing Services? Our Specialty.

An information technology outsourcing service is an organization that offers a variety of technology outsourcing solutions, either by handling them personally or matching businesses with a trusted outsourcing provider. When you work with an IT outsourcing vendor, you can rest easy knowing your tech needs are in good hands.

At Novatech, we offer a host of IT solutions, including around-the-clock monitoring, cloud migration, managed print service, and more. We believe in building a customized approach for every client, because we know every client is unique.

If you’re looking for a smart, effective solution to your IT requirements, we’d love to hear from you. 


Fortunly. 15 Must-Know Outsourcing Statistics for 2021. 

Written By: Editorial Team

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