76% of organizations outsource their IT functions, Deloitte reports, signaling an important trend among digital leaders.
In fact, for them, the top reasons for outsourcing are focusing on core functions (65%), reducing costs (63%), and addressing capability gaps (53%).
Outsourcing has evolved into more than just a way for businesses to save money; it’s a strategic move that helps them stay flexible, tap into specialized expertise, and keep up in a competitive market.
The key here is to partner with a reliable outsourcing service provider.
As a leading expert in IT solutions outsourcing, BlueGrid.io has delivered numerous successful outsourcing projects and is sharing key tips and insights to help businesses outsource effectively.
Read on as its co-founder and CEO Ivan Dabic talks about:
- The qualities to prioritize when choosing the right IT outsourcing partner
- The warning signs that your IT project is draining resources
- How to measure ROI for outsourced IT projects
- The key metrics to measure the success of IT projects
- The major IT trends to be aware of in 2024
Who is Ivan Dabic?
With a background in cloud and cybersecurity, Ivan is an entrepreneur, purpose seeker, and problem solver who has been at the helm of BlueGrid.io since 2017. He is also the owner and CEO of Orange Cloud, a cloud and security consulting company. Previous experience includes a General Manager role at MaxCDN, a content delivery network acquired by StackPath.
First off, building your own in-house IT team is rightfully challenging.
According to Ivan, one of the biggest hurdles is finding and keeping the right talent.
“The tech industry is incredibly competitive. To attract skilled professionals is no easy feat. Even when you hire the right people, keeping them motivated and satisfied is a whole other challenge.
High turnover rates due to the tech industry competitiveness mean you’re constantly at risk of losing valuable team members, which can disrupt your operations and slow down progress. That is if you don't think this through before scaling the business,” he says.
He highlights that there’s also the added cost and effort of ongoing training to keep everyone updated with the latest technology.
“Given these challenges, outsourcing often turns out to be the smarter choice. Instead of dealing with the headache of recruitment and retention, outsourcing allows you to tap into a global pool of experts who are already equipped with the skills you need.
This way, you can save time and cut costs, as you don’t have to invest in training and development,” he explains.
Additionally, Ivan suggests that outsourcing lets you focus on what you do best, while the external team handles IT, bringing in their specialized expertise and experience.
It’s a more flexible, efficient way to manage your IT needs without getting bogged down in the complexities of building and maintaining an in-house team.
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Qualities to Prioritize When Choosing the Right IT Outsourcing Partner
Choosing the right outsourcing partner can make or break a project.
Given this, Ivan says that businesses should prioritize a few key qualities in an outsourcing partner to ensure a successful collaboration:
- Expertise and experience: Choose a partner with a proven track record in the specific area you need, such as cloud, IT support, or software development.
- Clear communication: Ensure the partner provides consistent, open communication, is easy to reach, and is proactive in giving updates.
- Cultural alignment: The partner's values and work ethic should align with your company’s culture for a smoother collaboration.
- Security and compliance: The partner must have strong measures in place for data security and adherence to regulatory requirements.
Watch our video for more tips on selecting the right IT outsourcing partner:
Next, it’s important to identify if your in-house IT project is beginning to consume more resources than expected; so you can prevent it from derailing.
But how can you tell if your IT projects are becoming a resource drain?
Ivan shares two most common pitfalls:
- Delays in task completion: Tasks that were initially expected to be straightforward begin to take longer than planned, causing deadlines to slip. Teams often put in extra hours to keep up, signaling that the project is becoming more resource-intensive than anticipated.
- Budget overruns: The project budget starts to balloon, with spending consistently exceeding initial forecasts. This can be due to unexpected complexities, additional software or hardware needs, or the requirement to bring in more skilled personnel, indicating that resources are being drained.
“When costs keep rising without an increase in value or progress, it's a sign that the project may be veering off track and consuming more resources than it should,” he adds.
How to Accurately Measure ROI for Outsourced IT Projects
ROI is always a concern for business leaders.
According to Ivan, gauging the ROI for outsourced IT projects starts with setting clear, measurable goals right from the beginning.
“Before the project starts, define what you consider a success — improving efficiency, reducing costs, or speeding up time-to-market. By having these goals in place, you can later compare the outcomes against your initial expectations to see if the project delivered the value you were aiming for,” he explains.
He highlights that another way to accurately measure ROI is by closely monitoring the costs and benefits throughout the project.
“Keep track of all expenses, including direct costs like payments to the outsourcing partner and indirect costs such as additional internal resources used to manage the project.
Identify the benefits as well, look for tangible improvements, such as increased productivity, faster project completion, or cost savings that result from the project,” he adds.
Key Metrics to Measure the Success of IT Projects
Success in IT projects is crucial, whether it’s handled in-house or outsourced.
But what metrics should you track to measure this success?
Ivan emphasizes focusing on a few key metrics:
- Meeting deadlines: Projects must be completed on time to avoid unnecessary costs and missed opportunities.
- Keeping an eye on budget adherence: Staying within budget is a strong indicator that the project is being managed well.
- Considering the quality of deliverables: The final product should meet or exceed expectations, ensuring it aligns with the project’s goals.
- Reviewing stakeholder satisfaction: Getting positive feedback from clients, team members, and end-users shows that the project is hitting the mark.
- Looking at ROI: This tells you whether the project has provided the value you were aiming for, making it a clear indicator of success.
By focusing on these metrics, companies can understand how well their IT projects are performing.
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Navigating the Changes in IT Outsourcing
The IT outsourcing landscape is evolving rapidly, especially in the cloud industry.
Given this, Ivan shares the key IT trends businesses should be aware of in 2024:
- AI and automation: They are integrated into cloud services to optimize processes, reduce manual workloads, and improve accuracy. Benefits include streamlined operations, cost savings, and enhanced efficiency.
- Edge computing: It processes data closer to where it’s generated, offering faster response times and reduced latency, making it ideal for industries needing real-time data processing like IoT and autonomous systems.
- Security focus: With more data moving to the cloud, advanced cybersecurity measures, disaster recovery plans, and strict data privacy protocols are essential for protecting data and ensuring compliance.
- Quantum computing: Though still in the early stages, quantum computing promises to solve complex problems much faster than traditional computers, potentially revolutionizing many industries. Staying informed will help businesses capitalize on this technology when it becomes accessible.
In the end, successfully outsourcing IT projects comes down to making informed choices — selecting the right partner, staying aware of trends, and keeping track of the right metrics.
With a thoughtful approach, businesses can navigate the complexities of IT outsourcing, ensuring they not only meet their goals but also stay competitive.
With its commitment to project excellence and client-centric approach, BlueGrid.io differentiates itself from other agencies as a top choice for businesses seeking to hire a reputable partner for their IT tasks.
