What are IT outsourcing services? How many types of it?

Today, in the world of the growing demand for specialties like IT and software engineering, the use of IT systems has become more and more complicated, which requires companies to need a professional IT department to reduce costs while ensuring the system works well. Businesses can have many IT outsourcing services such as database administration, network administration, and operation of IT systems … However, many people still have questions about IT outsourcing IT support.  

In this piece, we will provide you with the IT outsourcing services definition, types of IT outsourcing services and the reason why small businesses need IT outsourcing. Let’s read on to find out whether outsourcing is the best fit for your company.

What are IT outsourcing services?

IT outsourcing is the practice of using an external service provider to deliver some or all of the IT features required by a company including directing strategy, managing infrastructure, and running the service desk.

IT outsourcing providers can take full responsibility for all IT maintenance and support, which is called a fully managed service, or they can offer support for the company’s in-house IT team. This is sometimes referred to as co-sourced IT support and is usually an approach taken by larger organizations.

An organization may use one vendor for all their IT tasks, or multiple service partners to deliver various elements.

Types of IT outsourcing services

Types of IT outsourcing services

Categories based on Geography:

Nearshore outsourcing

The process of sending IT-related work to a business in a country which shares a border with your own country. This type will make communication and travel between the two companies easy.

Offshore outsourcing

This involves sending IT-related work to a company in a foreign country, such as the Philippines, India, China, which offers lower costs, political stability and tax savings.

Onshore or domestic outsourcing

This involves contracting an external service partner, lying in the same country, to provide IT-related work, remotely or on-site.

Categories based on Products:

Cloud computing

Contracting an external vendor to offer IT-related services over the internet, such as Platform-as-a-Service, Infrastructure-as-a-Service, and Software-as-a-Service.

Managed services

This involves contracting an external provider to offer network management functions such as virtual private networks (VPNs), messaging and call centres, firewalls, IP telephony, and networking monitoring and reporting.

With outsourcing, you can pick the best-managed services for your enterprises to help address specific business needs. A suitable managed service vendor provides a comprehensive range of technology services within one or many technology domains. Their large team of skilled IT experts creates a superior end-user experience by offering operational support and enhancements for a wide range of IT applications and services.

Small business IT outsourcing services: Why not?

Small business IT outsourcing services

Outsourcing, the practice of using outside vendors to handle tasks normally performed within an organization, is a familiar concept to many companies. Small companies routinely outsource their accounting, distribution, payroll processing, and many other important features because they have no other choice. Many large enterprises turn to outsourcing to decrease costs. Consequently, entire industries have evolved to serve companies’ outsourcing needs.

However, not many businesses thoroughly know the advantages of outsourcing, especially small businesses. It’s true that outsourcing can help you save money, but that’s not the only or even the most important purpose to do it. IT Outsourcing can provide small businesses a number of long-term benefits:

Cost Savings

Having in-house software development teams is costly, especially for small-sized enterprises that want to minimize costs. Outsourcing IT help desk makes it easy for the business to access the best services and talents without wasting the costs associated with housing in-house software development labours and particularly, training and hiring staff. Hiring and training IT employees is very expensive, and temporary employees’ quality doesn’t always equal to your expectations. Outsourcing enables you to focus more on your human resources where you need them most. 

Also, outsourcing partners help your business to eliminate the demand to invest in the tools and equipment required for successful software development. Therefore, outsourcing covers fixed IT costs into affordable costs and helps you to budget effectively.

Saves time

Outsourcing is also helpful in not only saving costs but also saving time for businesses. A short time-to-market is crucial for today’s world, where there are narrow windows for capitalizing on an emerging opportunity. This needs faster development and deployment of new software achievement. Unlike building up in-house development teams that subject businesses to long employing and training processes, outsourcing software laborers eliminate these processes, therefore, they invest time in executing the tasks.

Increase efficiency

When you outsource IT tasks, you can focus more on your profession and expertise more because you do not waste time to learn and do things that are not specialized. In addition, the outsourcing firm also has industry expertise so the quality of the work is usually higher and the execution time is faster than doing in-house work.

Enterprises that do everything themselves have much higher development, research, distribution expenses, and marketing, all of which must be passed on to clients. An outside vendor’s cost structure and economy of scale can give your firm a crucial competitive benefit.

Decrease labor costs

Hiring and training employees for short-term or peripheral projects can be very costly, and temporary staff doesn’t always live up to what you want. Also, when you hire new staff for short-term projects, the existing staff in your company may not have enough specialized knowledge to judge and ensure the quality of new staff. Then you will have to employ external QA or QC to ensure the quality. Thus, outsourcing enables you to focus your human resources on your core. 

Control capital costs

Reducing costs may not be the only purpose to outsource, but it’s certainly a major factor. Outsourcing converts fixed costs into variable costs, releases capital for investment elsewhere in your business, and enables you to avoid large expenditures in the early stages of your company.

IT outsourcing services at Magenest

Magenest’s success comes from the success of our customers, we are proud to be a one-stop digital agency with more than 6 years in business. Our company uses technology to help businesses solve management and operational problems and we have helped many companies to transform their digital presence through our full-stack technology pack with various platforms, which will fit your business the best and bring the best success to your company. 

Our services

The power of the four platforms Adobe Magento Commerce, Odoo, Salesforce and Amazon Web Services are perfectly combined in One-stop Solution – the only comprehensive and unique set of enterprise technology solutions in Vietnam. We help businesses solve problems such as sales management, human resource management, building and maintaining customer relationships, and storing and analyzing data.

With the goal of bringing customers’ benefits and sustainable development, Magenest accompanies businesses in the digital transformation process and helps their employees adapt to technological changes.

Magento Development

Magento Development

Magento is considered as the No. 1 e-commerce platform in the world and has been helping millions of businesses, from small and single companies to large corporations like Ford or Coca-Cola, to build up considerable development.

Magenest is proud to be Magento’s strategic partner in the Asia-Pacific region, we provide the world’s leading technology solutions and ensure smooth, responsive eCommerce system construction and deployment to meet all needs of the business.

Website Development

Achieving more than 18 M2 Certification certificates from Magento, the experts at Magenest has helped many large enterprises such as Heineken, Nestle, Lavie,… to build successful e-commerce websites.

Extension & Integration

At Magenest, we provide 100+ extensions to expand and enhance the available features of the system including Payment gateway integration, content management, loyalty program, email marketing, …

UI / UX Design

At Magenest, the skilled team of designers helps you to design a smart sales interface that attracts attention, while we help motivate your customers to make buying decisions at the same time.

Migration

We have upgraded our website from Magento 1 to Magento 2 and implemented the transition from other e-commerce platforms such as Shopify, WooCommerce,… to Magento 2.

Our Typical Successful Story – Heineken Cooperate Vietnam

With the rise of high volume orders coming up, Heineken needs to improve operational efficiency and provide better service to boost its sales. Therefore, Magenest offers technical advice and builds e-commerce systems around Magento Commerce.

With experience in implementing Drinkies – Heineken’s B2C system in Southeast Asian countries, Magento Commerce is Heineken Vietnam’s first choice when deploying the Corporate D2C (Direct to Customer) system. Storage on AWS’s cloud infrastructure is the foundation for Heineken to operate efficiently in the future. We design a digital Corporate D2C Commerce experience with the combination of Magento Order Management System and B2B experience redesigned from the ground up.

What Magenest has achieved from the project is an efficient D2C system, creating a positive impact on the development of Heineken Vietnam. The highest level of sales performance is a step for Heineken to continue investing in digital transformation projects. Automated order processing allows productivity to raise many times with high accuracy. Heineken was able to confirm orders faster with timely and clearly transferred data. Human resources also increase connectivity, thereby building an effective workflow and customer care service. Thanks to the state-of-the-art technology, Heineken’s performance, and sales have reached new heights.

If you want to know more about this successful story, let’s visit here.

Amazon Web Services (AWS)

Amazon Web Services (AWS)

Amazon Web Services (AWS) is a comprehensive cloud platform widely used over the world with nearly 165 premium services. Customers who use AWS are fast-growing startups, large corporations and government agencies with the aim of developing infrastructure, innovating and reducing costs such as Netflix, AirAsia and Airbnb.

Magenest is a consulting partner of Amazon Web Services, we offer cloud solutions, network security, software development, and support the enterprise “cloud” process. Leading experts will assist businesses with fast database storage and operations with minimal IT infrastructure costs.

Advisory

Magenest’s professional consulting team also ensures that you use crucial services to operate and develop without any issues.

Migration

We work with Amazon Web Services to minimize infrastructure refactoring as you make your transition to the cloud whereas preserving security and workloads for your operations.

Managed Services

Magenest’s infrastructure experts will help you to take care of your cloud infrastructure and operation, make adjustments and optimizations during operations.

Our Typical Successful Story – Trung Nguyen Group

With the rising trend of eCommerce, Trung Nguyen wants to bring its coffee goods to more and more consumers. Therefore, Trung Nguyen has constructed an online space named Coffee Hypermarket for coffee lovers to:

  • Explore advanced coffee machines
  • Find high-quality coffee products
  • Participate in bartending and managing training
  • Receive advice for new business models like Franchise or License

Therefore, we’ve consulted Trung Nguyen to migrate to Magento 2 for the best performance and scalability. Other proposals from Magenest include:

  • Integrate ERP into the system
  • Store and secure huge database on AWS Cloud
  • Develop a mobile app for a faster service
  • Connect POS with the online system

If you want to know more about this successful story, let’s visit here.

Odoo

Advisory

Our consultants help you navigate the number of functions of Odoo, choosing only the ones that fit your operations so you can avoid painful experiences.

Implementation

With more than 6 years of implementing technology solutions for businesses of all sizes, Magenest helps to deliver the highest quality and appropriate solutions that work for your company in the shortest execution time.

Post-launch services

With the help of personnel training, our team will guide you to ensure your ERP system works well. After deployment, we will continue to maintain and give our advice to match your company’s needs.

Our Typical Successful Story – 24h Visa
24h Visa

24h Visa is an agency specializing in providing visa solvements. To better organize and control the wide amount of information, 24h Visa Manager thinks that it’s time to integrate an ERP to create a systematic and seamless workflow. 

Magenest is a leading technology solutions company in the APAC region. As a Silver Partner of Odoo, the number one open-source ERP system in the world, we are confident to successfully deploy the new system for 24h Visa.

Our work involves:

  • Document workflow
  • Decentralize user
  • Connect potential customers
  • Monitor business activities
  • Accounting workflow

The application of Odoo also lowers manual jobs, which helps to save time and effort for a great number of employees. The automation and accurate reporting help 24h Visa accurately plan the next development steps.

If you want to know more about this successful story, let’s visit here.

Salesforce

Salesforce
Advisory

Magenest offers the most reasonable set of Salesforce solutions based on the needs and resources of the business.

Migration

Magenest synchronizes business data to Salesforce and ensures stable operation of the system.

Integration

Magenest integrates existing enterprise technology platforms with Salesforce to support fast and efficient business operations.

Support

Magenest supports before, during, and after Salesforce deployments. Errors and requests generated will be handled quickly. Magenest also organizes orientation sessions for businesses to proficient use of services.

Our Typical Successful Story – Drinkies by Heineken
Drinkies by Heineken

Because of its international presence and expanded lines, the brewer had multifaceted targets, one of which is its latest Drinkies project in the South East Asia region. The idea of Drinkies is to bring the cold drinks right to the customer’s doorstep only with a 60-minute-delivery.

This model is Heineken’s first step in its “Drink responsibly” movement, by providing a fast and reliable delivery solution so customers do not have to go out to pick up their drinks, the company could decrease the traffic accident proportions caused by drinking and driving. Also working on the project are Valtech – Heineken’s digital partner, Vaimo – a Magento 2 Global Elite while Heineken Global itself does the supervising work.

Our work involves:

  • Ahamove and Grab – delivery solution integration
  • Napas and Momo Pay – local payment gateway integration

If you want to know more about this successful story, let’s visit here.

Final Words

IT outsourcing functions will continue to rise at a significant pace. The continued strong growth of both the breadth and depth of IT outsourcing requires that this management practice is more than just a passing fad and that, under the correct circumstances, IT outsourcing may offer the advantages noted by its proponents. We hope that this article about IT outsourcing IT services is helpful for you and will help you outsource successfully.

A partner with experienced and trustworthy outsourcing IT services can help you launch your enterprise forward. Magenest has been providing our clients the cost-saving IT outsourcing they require for day-by-day IT tasks and long-term strategic achievements. After knowing about IT outsourcing services, if you’re looking for finished IT outsourcing, no matter your enterprise is small, medium or big size, we can show you in the right direction.

If you are searching for a partner who knows how to make outsourcing grow your business, we are ready to help you. Magenest is proud to be a one-stop digital agency with more than 6 years in business, we have helped many companies to transform their digital presence through our full-stack technology pack with various platforms such as Adobe Magento Commerce, Odoo, Salesforce, and Amazon Web Services. Contact our experts to figure out what values we can bring to you and your business.

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