IT Support Services: In-House Upgrading vs Outsourcing

As mainstream trade and commerce transactions rapidly shift into the digital world, the growing demand for information technology (IT) support services skyrocketed in the last decade. These IT support services include software and hardware design, cloud-based storage, remote access and operations, network security, and other technical services aimed at enhancing a company’s ability to keep up with the changing technological landscape.

On one end, there has been a substantial rise in financial investments in upgrading internal corporate IT capacities, specifically in software management. On the opposite end, there is also an exponential growth in the number of outsourced IT support services firms that provide external skills and expertise to companies that do not have the required capabilities to respond to their needs.

These trends have prompted business owners and decision-makers to think of the best direction that companies must pursue in the era of digital transformation: Internal upgrading or external outsourcing?

In-House Upgrading Advantages and Drawbacks

In-house upgrading is an ideal goal with long-term benefits. As such, its primary advantage is that it prepares the company for self-determined digital operations. In other words, upgrading in-house IT capacities will reduce a company’s dependency on external service providers and allow them more flexibility to readily innovate solutions to their unique problems and goals in the present and in the future.

However, as an ideal goal, the costs of extensive in-house upgrading are considerable. These include upfront costs such as hiring additional full-time IT professionals or the constant training of existing personnel which significantly increase salary and personnel development expenditures. There are also inevitable overhead costs in providing staff with equipment, space, utilities, and required employee benefits that can raise operating expenses even higher.

In-house IT support may provide businesses with specific technological expertise but these may eventually be limited when new demands begin to emerge. For instance, an IT support specialist may be very good at using a specific application but may not have the expertise to handle diagnostics, network security, or hardware upgrading problems that typically arise in the long run.

Outsourcing Benefits and Disadvantages

Currently, mobile application development and website design are two of the more popular services for IT outsourcing. Web design services refer to technical and data architecture services in designing a company’s website while mobile app development services make digital platforms flexible for use in mobile devices such as smartphones and tablets.

The primary benefit of these outsourcing services is that they provide comprehensive solutions to resolve their client company’s IT needs here and now. Outsourcing mobile app and web development services are also cost-effective since IT personnel are only hired on a per-project or time-specific basis, which is cheaper than hiring full-time, permanent staff. Outsourcing vendors also provide highly specialised services that many SMEs and even large companies do not have and therefore allow their clients to focus their available manpower competencies and resources into more suitable tasks.

However, given its ‘short-term’ and temporary nature, outsourcing still necessitates internal control which means that even if certain services are outsourced, companies may still need internal adjustments and investments to effectively manage and optimise technology for their own goals.

Integrating Long and Short Term Solutions

IT support services are fundamental business necessities that require multiple considerations and substantial investment. While some may favour building an in-house team due to benefits the company may receive to get ahead in this evolving digital world, others opt for third-party outsourcing. Not only does it provide cost-efficient solutions, but these experts can immediately address urgent business needs.

Classic and contemporary solutions need not be mutually exclusive though, and companies may strategically integrate these directions. Reliable IT outsourcing companies such as Frontline Mobile Pte Ltd, known for its services for web and mobile app development in Singapore can provide businesses the IT support they need. To inquire about our products and range of services, visit us at https://www.frontline.com.sg/.