How risky is IT outsourcing?

A lot of companies outsource some part of their business. It is quite a common practice, which has a lot of benefits but also poses some risks. We will try to figure out how risky it is to use IT outsourcing services.

As a business owner, you may want to control all areas of your company. But sometimes is more feasible to outsource some part of the business, like IT services. Of course, there are some risks but, at first, let’s take a look on benefits. Success in outsourcing mostly depends on the provider you choose. Cooperation with an experienced IT service provider, like, will give you the next benefits:

  • reducing costs: you don’t need to buy new equipment and hire new employees in-house. Using the services of an outsourcing company usually will cost you less than hiring local specialists;
  • allocating resources: you’ll give a part of your business to a third-party company, who’ll take the responsibility for your IT processes allowing you to allocate the internal resources to growing your business. As a result, you’ll become more competitive;
  • staff reduction: you do not need an expanded in-house team;
  • access to new technologies: you’ll get all the technologies you need without extra effort.
  • instant access to top-notch skills: reputable IT outsourcing companies house teams of highly-skilled professionals that often can start working on your tasks at once.

What IT outsourcing risks you may face?

When you delegate part of your business it is always risky. What is waiting for you in IT outsourcing? Let’s have a look at 4 it outsourcing risks and how to mitigate them:

  1. Management risks. Sometimes customers face the process disruptions and delayed deadlines. This is can bring significant losses to the company. You can avoid this risk if you’ll analyze your Managed Services Provider’s work before making a deal. Try to find reviews from their previous customers, ask the provider for contacts of accomplished projects and request their feedback directly. A reliable provider will gladly tell you about his experience and previous cases, answer to all your questions and give information you need.
  2. Problems with the quality of work. The quality of the provider’s work can be worse than you expect. To mitigate this risk, make sure you choose an experienced IT outsourcing company. Give them strict project requirements but be open to the provider’s suggestions, because he may have good solutions already available for your request.
  3. Different time zones. This can make communication harder, but you can easily avoid it. Choose a provider with a convenient time zone. For example, if you’re from the EU, the provider from Ukraine will suit you, because the time difference is only two hours, so 6 working hours overlap each day. If you are from the US, Ukrainian providers will also be good for you, because due to the time zone differences, most of the tasks can be done overnight for you.
  4. A leak of sensitive data. The provider may accidentally or on purpose use or spread your company information. To maintain this risk, you need to make a contract, where you will register all the rights and obligations of the parties. Better if you’ll sign the non-disclosure agreement (NDA), also known as a confidentiality agreement (CA).


As you see, all common risks have quite standard solutions and with a bit of attention to detail, you can easily maintain all of the risks.

Conclusion: what is weightier – risks or benefits?

Of course, all business processes can be quite risky. But, as a business owner you must know it is an integral part of building a company. While using IT outsourcing services, you may have trouble with management, work quality, data security, etc. Almost all the risks disappear when working with the right third-party company. Try to choose not only a contractor but a partner, who will be interested in the success of your company. Thus, outsourcing IT services you will get high-quality work while mitigating all the risks.