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Best way to reduce the IT cost

Updated: Feb 9

This article will be helpful for startups, small businesses, and large organizations that are looking to reduce the IT cost for their businesses. IT is a large sphere and cost optimization has multiple factors associated with it. The article focuses on the reduction of application development and maintenance costs.

In This Article

IT is integral to a business

Development and maintenance of software or a web application for a business is an expansive affair for any organization. IT consultants and development resources are always in high demand, and that makes it very difficult to build an in-house IT team.Startups regularly need to modify their websites or business applications to keep the services and products updated as the business model evolves.

Enterprises, on the other hand, continuously need to add features and functionalities to their business application to improve operational productivity. Integration of APIs to engage channel partners, add reporting and data analytics features for sale assessment and incorporate business process automation to reduce the manual work.

Many software development companies have a small in-house IT team to look after the website maintenance and content updations tasks of business web applications. However, maintaining a small in-house IT team or hiring a local agency becomes an operational challenge for organizations as it adds up hugely to the budget.

Reduce cost by outsourcing

In information technology, outsourcing development and maintenance is very common amongst organization that actively wants to control the IT budget. Several companies have their own core IT team, but they hire offshore resources to support the core team remotely.

In-house IT team costs huge

The in-house team adds to the project cost as the company not only has to spend on the salary of the staff, it requires investment in health insurance, travel allowances, and other mandatory benefits to meet government compliance. Startups face an additional issue of renting office space for the team. Regular budget allocation for maintaining an in-house team and office setup further hurts the cash flow when the work is not regular or there is a slow down in the market

Outsourcing is your best bet

Business analysts recommend outsourcing the maintenance or development IT team to India to reduce the project cost. Outsourcing the talent for development and maintenance work is always cheaper than hiring, training, and maintaining full-time in-house resources that incur a fixed cost. Outsourcing for small businesses is the best option to increase business productivity. Lee Kuan Yew, Ex-Prime minister of Singapore, said, “If you deprive yourself of outsourcing and your competitors do not, you're putting yourself out of business”.

We at Danip Technologies do remote development for companies that are looking to reduce IT cost by offering remote web development and maintenance. We also assist organizations in hiring a reliable offshore IT talent for remote working. With our flexible and customer-centric approach you hire a single offshore resource on hourly basis to fill any temporary skill gap, or you can build an entire dedicated IT team on an offshore developmental model.

Get a shared resource for temporary needs

You can engage one of our in-house skilled resources to work remotely on your project for any short duration or temporary requirements. The Shared Resource model lets you fill any skill gap immediately and without any long-term liability. This model is preferred by entrepreneurs and small businesses that frequently need an IT professional's assistance in maintaining a website or a web application.

Build an offshore team to work remotely

You can also build your own Dedicated Remote IT Team of handpicked and carefully interviewed professionals that will exclusively work on your project from our office on an offshore development model. It helps the companies that need to maintain a small IT team but want to control the cost of maintaining an in-house team.

Know before you outsource

One of the biggest concern of offshoring is time zone differences. Many offshoring companies operate within a 5-12 hour difference from their client, meaning work schedules may need to be adjusted to accommodate your offshore partner.

However, IT companies based out of India are flexible and capable to provide a round the clock services. They have an entire eco-system in place already.

Communication and the language barrier is one of the concern that deters many companies from choosing outsourcing as a viable option to reduce the cost. However, it won't be very difficult to find a good English speaking IT resource from India where most techie youngsters usually use English as primary mode of communication in day to day life.

Infact, India has the second most English speaking people after the US.

Advantages of offshore outsourcing

Internal assets can focus on core activities:

Outsourcing the IT maintenance work to external third party guarantees that a business enterprise's internal sources are freed up for focusing on mission-essential activities.

Speed up migration to new technology:

Adopting more modern technology permits agencies to make better use of their investments and experience advanced productivity and improved quality. Companies with outsourced IT techniques are in a higher role to migrate to new technology with minimal downtime and productivity disruption

Risk management:

In any outsourcing version the offshore associate supplements the techniques of the outsourcing organization with backup mechanisms.

Access to world-class skills:

Organizations outsource work to have techniques introduced through teams that have operational understanding. Outsourcing gives companies get entry to world-elegance skills and infrastructure within side the outsourced function.

Operating expenses may be reduced:

Organizations can keep on operational expenses including payroll, administrative expenses, HR, power, rentals, and utilities as techniques move to different locations. This results in important price financial savings for companies.

Considering the benefits that outsourcing offers, most large companies have tied up with an a an IT agency in India for software development and maintenance work. The outsourcing eco system in India is so well developed that even startups and small organizations are preferring to get outsource continuous development and support tasks to India. They let the developers access the code remotely, pay them hourly and save a hugely on IT cost.

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