Digitalization (Industry 4.0) is a necessary evolution that businesses need to remain relevant and competitive in the twenty-first century. One of the most cost-efficient and swiftest ways to attain digitalization is by outsourcing information technology to specialized IT companies.
This article will provide three reasons to outsource information technology and explain how outsourcing can speed up businesses’ transition to a more digital and efficient business operations model. Read more below.
1. Technology Expertise
The first reason to outsource information technology to specialized IT companies is their technology expertise. Outsourced IT companies are exposed to a wide range of cutting-edge technologies, such as cloud, advanced analytics, and more. By having such exposure, they have in-depth knowledge on multiple technologies, which businesses can leverage to attain digitalization faster.
Moreover, having such expertise allows outsourced IT companies to effectively advise businesses on which technologies can provide a return on investment. In contrast, in-house IT departments are limited by their domain or the CIO’s vision and knowledge, which can hamper a business’s digital evolution.
Additionally, outsourcing information technology lets businesses access larger teams of technology experts, such as Systems and Software Engineers. For a fraction of the price to hire specialized personnel, outsourcing to an IT company lets businesses have a team of technology engineers who are experts in their domain, which further helps businesses attain digitalization faster without incurring high costs.
2. Industry Specialization
The second reason to outsource information technology to specialized IT companies is their industry specialization. IT companies who specialize in an industry vertical (niche) have worked with many businesses within the same industry and have seen the same issues, challenges, and/or bottlenecks repeated across them. Because of this occurrence, they have developed a toolbox of ready-to-use solutions and best practices to quickly and effectively address these problems. These IT companies often do not limit themselves to the technological aspect, but they also offer valuable insights into best practices and processes to fully maximize the technology and streamline business operations. By understanding the industry's particularities, these technology companies can help attain digitalization in a shorter period.
For example, we often find bottlenecks at warehouses and distribution centers in their receiving process. These bottlenecks are often associated with a lack of technology and obsolete processes that tend to limit receiving capacity while also impacting downstream processes. Because of our expertise and experience working with warehouses and distribution centers, we’re quick to detect problems and recommend definitive solutions that help them attain digitalization.
3. Technological Evolution
The third reason to outsource information technology to specialized IT companies is to keep up with the always evolving technology landscape. Like the industry we are focused on – warehouses and distribution centers, we see that the technologies surrounding it are continuously evolving in terms of maturity, market acceptance, and utility. One way we keep track of these variables is using frameworks such as the S-Curve of Innovation, Technology Adoption Life Cycle, and Hype Cycle. Using the information gathered from these frameworks, we can monitor technologies' evolution and advise our clients whether certain technologies can provide a return on investment.
To learn more about the evolution of warehouse technologies, you can download our Warehouse Digitalization guide.
Stepping back to a more macro perspective, technology companies must always remain informed and trained in the latest technological advancements because of the IT industry’s constantly evolving nature. This is why specialized outsourced IT companies are always in the market for the most innovative technologies and are testing them to assess their reliability and viability. This testing typically evolves trying the technology in a lab, performing small pilot programs with trusted customers, and fully deploying the technology to the rest of the market. Companies that establish a trusting relationship with these IT vendors and keep a long-term vision are positioned not only to operate smoothly in the present but remain competitive in the future as technology evolves.
As a result, partnering with an IT company specialized in the industry is an effective way to attain digitalization and cement a strategy to ensure that the business remains competitive into the future.
Summary
The three reasons to outsource information technology discussed in this article explained how specialized IT companies can help businesses attain digitalization quickly and cost-efficiently. Specialized IT companies have the technology expertise, industry specialization, and are always up-to-date about the latest technologies and their evolution. Because of this, they can effectively manage the evolving nature of a business’s information technology, help attain digitalization, and remain competitive.
In addition to helping businesses attain digitalization, specialized outsourced IT companies can also help boost net income, reduce supply chain disruptions, and capture & retain clients. Learn how by clicking the links!
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