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  • How onshoring/reshoring your IT services will help your business

    April 26, 2023

    The growth of offshore IT services means that a business can now outsource almost any part of its IT structure. In the US alone, the IT outsourcing market is worth a staggering 91.91 Billion USD. However, offshore IT solutions may not be suitable for all businesses, especially small ones. That’s because the risks associated with offshore IT services may outweigh the potential cost savings.

    In this blog, we explore the reasons why onshoring/reshoring your IT services may be the best decision for your business.

    What is offshoring?

    Offshoring, a practice that has become increasingly prevalent in the business world, has indeed altered the way businesses operate, but not always for the better. At first glance, offshoring IT may appear significantly less expensive for small and medium-sized enterprises (SMEs) compared to maintaining an in-house team. However, the true costs of offshoring can often outweigh the initial savings. Offshoring IT services can lead to hidden costs such as language barriers, cultural differences, time zone challenges, and communication issues, which can result in delays, errors, and increased project management overheads.

    How does offshoring IT work?

    Offshoring IT services involves transferring some or all of the company’s information technology needs to a third-party provider, typically located in another country. This can include any number of services, from software development to cybersecurity and network maintenance to customer support services. Business owners might consider offshoring IT for any of the following business needs:

    • The need to reduce labour costs
    • A lack of in-house expertise
    • The need for 24/7 customer support
    • Time-saving
    • Scalability.

    What are the disadvantages of offshoring IT?

    While offshoring IT services may appear attractive for businesses in search of cost savings, there are significant drawbacks to be aware of. These include:

    Cost

    Some outsourced IT companies may quote initially competitive rates; however, if they are unable to deliver the service they promise, businesses may not only suffer from a lack of ROI but their customers may be dissatisfied as well. If the scope of work increases during a project, the costs associated with this may be difficult to predict.

    Security risks associated with data being stored overseas

    Confidential data stored in countries with different standards of cyber security can be vulnerable to theft or malicious attack. The business risk associated with this can be substantial: if private information, such as customer data or financial details, is exposed due to inadequate security measures, the business may be liable for any losses incurred.

    Delays in communication

    Language and cultural differences can lead to communication issues, resulting in delays and loss of productivity. There are challenges of communicating effectively with a remote team can add to the complexity of managing a project. This could mean that tasks take longer to complete, leading to delays and missed deadlines.

    Reduced quality of work

    The quality of the service provided by an offshore IT provider may not be up to the same standards as that of a local provider, as there is less control and oversight of the work being done.

    Given these drawbacks, many businesses are now turning to onshoring/reshoring their IT services, in order to avoid the associated issues.

    How can Onshoring/Reshoring your small business IT services can help

    From virus removal, disaster recovery and related issues to remote support and troubleshooting, local outsourced small business IT support can help take your business to the next level

    Onshoring/reshoring is the practice of bringing back processes and activities previously outsourced to other countries. In terms of IT, it involves bringing the company’s IT services back in-house or relocating them to a local provider.

    Onshoring and reshoring IT services is a strategic move that many companies are making in order to achieve long-term success. By bringing IT services back within the company’s home country, businesses are able to enjoy numerous benefits such as higher quality control, faster turnaround times, and a better understanding of local customers. Moreover, onshoring IT services helps companies reduce the risks associated with managing offshore resources, such as security threats and compliance issues. It also helps businesses to minimize language barriers, increase collaboration between departments, and promote a stronger sense of teamwork among employees. In addition, onshoring IT services can also bring about cost savings, as it eliminates the need to pay for high offshore salaries, taxes, travel expenses, and other related costs. Ultimately, onshoring IT services comes with many benefits that allow businesses to focus on delivering exceptional customer service and increasing their bottom line.

    Onshore outsourcing

    Also known as local outsourcing, this practice involves hiring a third party company located within your company’s country to handle certain tasks, such as IT services. The benefits of onshore outsourcing are numerous, ranging from improved cost control and quality assurance to increased flexibility and access to top talent. By leveraging the capabilities of local outsourcing providers, businesses can stay on the cutting edge of technology while freeing up resources to focus on core competencies and strategic initiatives. 

    Setting up Your IT Infrastructure for Onshoring/Reshoring

    If you’re a business owner who is considering onshoring or reshoring your operations, it’s important to have an IT infrastructure that can support your needs. This means having the right hardware, software, and connectivity in place to optimise your operations and ensure your business runs smoothly. Whether you’re starting from scratch or looking to upgrade your existing infrastructure, it’s crucial to work with a professional IT team that can help you identify your key requirements and implement the right solutions. With the right IT infrastructure in place, you can be confident that your onshoring or reshoring efforts will be successful in the long term.

    Offshoring vs Onshoring/Reshoring IT: Which is Right for Your Business?

    By “farming out” critical IT functions to offshore providers, businesses may lose control over important aspects of their operations. This loss of control can lead to reduced quality, security risks, and potential breaches of data privacy regulations. Offshoring IT services can also result in the loss of local jobs, as businesses seek to cut costs by moving operations overseas.

    If you are a small business owner who is feeling overwhelmed by the complexity of IT services. Reshoring your IT services could be just what’s needed to help your business become more efficient and better able to serve its customers. Onshoring IT services can also help businesses achieve cost savings, improved service quality, and better compliance with local regulations. By bringing in an experienced provider who understands the complexities of technology and how they apply to businesses, you can free up valuable time that would otherwise be wasted trying to figure out these issues yourself.

    Final thoughts

    At Tech Seek, we will work closely with our clients to determine the right small business IT solutions to reduce time consuming tasks and increase productivity

    Ultimately, the decision to offshore or onshore IT services comes down to what is best for your business. While offshoring IT services can appear to be a cost-effective solution in the short term, it can also lead to long-term problems such as data privacy issues and costly delays. When you make the decision to reshore or onshore your IT, you can enjoy the peace of mind that comes with knowing you are in control of your operations and have access to the latest technology and resources.

    At Tech Seek, we are more than just an IT support provider. We empower small businesses in Melbourne’s North and West by providing local outsourcing services that cater specifically to their unique needs. Our vision is to support small businesses with the IT systems, tools and help they need to thrive in today’s fast-paced digital world. Whether you need help migrating to Microsoft Office 365 or require reliable data backup solutions, our team of experts is here to help. We pride ourselves on our ability to deliver prompt and professional services, including virus and malware removal, PC and Mac repairs and upgrades, and internet and network setup.

    Our company has a team of full-time, on-site experts who are dedicated to keeping your company’s data and passwords secure. Additionally, we provide in-person assistance to promptly resolve urgent issues instead of making you wait on hold or for an email reply.

    So why wait? Join the countless small businesses we have helped to grow and succeed and experience Tech Seek’s local outsourced IT solutions today!