Companies outsource technology for technical support, new technology development, and existing technology configuration. Outsourcing is often necessary for growing businesses and expanding into complementary markets. Legacy businesses may need outsourcing to optimize processes.
There are three main types of technology outsourcing to companies: technical support, new technology development, and existing technology configuration. The type of technology outsourcing a company or organization chooses depends on its objective – whether it be upgrading products or services, branching out into vertical markets, or optimizing business processes. While many organizations have at least one IT professional on staff, most choose to outsource projects that require special training or that are not manageable by in-house staff.
Outsourcing technology for technical customer support requires the outsourced company to be fully trained and familiar with the product or service so that it can provide customer support on behalf of the company selling it. For example, a company that manufactures software or hardware might outsource a company that provides customer technical support through call centers. Because most technical support can be handled over the phone, email, or instant messaging (IM), the third-party call center is sometimes located in another country or even continent. The practice of hiring other companies to provide support to your customers is sometimes called “growing” the customer service side of the business and is often a necessity for growing businesses.
Organizations can also choose technology outsourcing when they are struggling to develop a new technology. Typically, in this case, the organization has a general idea of what kind of technological product or service they would like to sell or license, but lacks the technological know-how to create that product or service. For example, if an organization that sells paper decides to focus on selling paper technologies such as printers and scanners, it can outsource a company that manufactures these products to design one for its brand. Expansion into complementary or “vertical” markets often requires technology outsourcing and is a desirable goal for companies looking to grow.
Organizations that have been around for a while and continue to rely on legacy business processes will likely need technology outsourcing at some point. For example, a government department that traditionally uses a manual method of processing tax returns might outsource to a software company that can configure a special type of software for its department’s unique needs. Some companies specifically design computer software for certain niche industries, such as accounting firms, beauty salons, or government departments, and then configure the software for each customer’s individual needs.
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