IT companies prefer to outsource IT services from offshore (more distant country), onshore (within their own country) & nearshore (to a neighbouring country). An initiative of IT service provider outsourcing offers a variety of functions to you like software development, designing, quality testing, recovery solutions, etc.

To provide you with an overview of IT outsourcing, we have summarised a few jaw-dropping stats for you:

  • As per Statista, “By the end of this year, the overall value of IT outsourced services will exceed $413.72 billion.”
  • According to Deloitte, “the major reason for outsourcing (70%) is cost-reduction.”
  • As per Outsource Accelerator, “the Indian IT outsourcing industry will see a growth of 7.25% CAGR by 2025, reaching INR 8,830 billion.”

After knowing these statistics, what is the first question that comes to your mind? I think the very first question that will come up in your mind is why the IT sector is inclining more towards the outsourcing of IT services.

Relax! In this post, we will go through with you all the major & minor reasons why the IT sector is opting for outsourcing & why it is blooming.

Before that, we will let you know about the types of IT outsourcing:

Outstaffing: In the out staffing model, the company pays hourly or monthly based rates to the service provider for the employee.

Project-based outsourcing: In this type of outsourcing, the company tells the service provider about all of their requirements related to software development. After that, the service provider will take care of all the things like software development, quality analysis, project management, business support, a virtual assistant, etc.

Opening an offshore office: In this model, a company opens its office in another country & hires employees to work for the company.

Now, are you ready to know the multiple reasons behind IT outsourcing? So, here it is:

Benefits of IT Outsourcing

Reduced Costs

One of the major reasons why companies are looking more towards outsourcing is the reduced costs. Any business owner either big, medium, or small searches for a way to work efficiently at minimal costs is the best option for this.

Outsourcing from offshore allows the business to focus on the core tasks of the business by cutting the different costs involved in a variety of tasks. For the USA, the best offshore option in India. Opening an opening in India & hiring people to work for their company contributes to the reduction of costs.

Outreach allows the business to focus on the core tasks of the business by cutting the different costs involved in a variety of tasks. For the USA, the best offshore option in India. Because labour costs in India are quite low compared to the USA.

New Technologies & Capabilities

Outsourcing companies generally use new technologies for work & are mostly streamlined. With the latest technology, they have world-class capabilities to accomplish any task. All of these things are something that a growing company can not afford.

In this tech era, everyone is struggling to give their best by opting for the latest technology trends. Therefore, this is a great option for the IT industry to flourish.

Limitless Options

Well! The outsourcing field is not only constrained to IT. There are limitless options that one can outsource for attaining their business tasks software designing & development, customer service, accounting, advertising, etc.

Almost every business task that you can imagine or wish to achieve can be outsourced. All are outsourced, by hiring the best & skilled at affordable costs, which are some of the reasons we need to highlight while describing the term outreach.

Skillset That You Don’t Have

If a skilled & experienced individual or company is there to take care of your different business tasks. Then you can concentrate on the important activities of your business. It will ultimately help you in increasing the efficiency of your business.

Although IT services come with abundant benefits, there are a few common IT challenges that a business owner faces while selecting it:

  • Hard to find the best outsourcing partner
  • Trust issues with an outsourcing partner
  • No prior experience with outsourcing companies
  • Legal complication challenge
  • Lack of communication & time-zone difference issue
  • Budget-friendly
  • Flexibility issue
  • Confidentiality problem
  • Vendor information is inconsistent
  • Sometimes, outsourcing may be risky

But, you don’t have to worry about all these challenges because¬†Decoro offers you the best IT outsourcing experience by overcoming all the challenges.


Tech giants like Oracle & Microsoft have opted for IT outsourcing even after having challenges & gained huge advantages from outreach.

Today, outsourcing is the need of the hour for businesses. Most companies are searching for the best option to get an expert for their business that they can’t hire locally.

The short of a long story is outsourcing is blooming in different tasks of every industry. Hence, don’t hesitate and go for outreach. If you really need it because it is a pretty good option to go for according to your business requirement.