Reasons Why Small & Medium Enterprises Should Consider IT Outsourcing

Why small and medium enterprises should consider IT outsourcing: As per a report, 24% of small businesses feel an increase while 57% believe outsourcing allows them to focus on business.

4 min read
Oct 21, 2021

Outsourcing various IT functions such as software and product development enables you with a great many advantages. It eliminates large capital outlays, infrastructure build-up, and hiring an in-house team of experts, which may put small and medium enterprises on shaky financial ground.

Aside from cost reduction being the top reason for outsourcing, small and medium enterprises should also consider a boost in productivity, and efficiency, and focus on core business elements. As per one report, 24% of small businesses feel an increase in efficiency level while 57% believe outsourcing allows them to focus on core business areas.

Here are some more reasons why small and medium enterprises should consider IT outsourcing:

Reasons to Consider Outsourcing Software and Product Development

Large enterprises have already adopted this model, but small and medium enterprises like yours are still reluctant to try it. Obviously, there are a few things to take care of while outsourcing before going right into it. Here, we present a few reasons to consider IT outsourcing such as software and product development.

1. Access to Highly Skilled Resources

Most small enterprises in the non-tech industry do not have access to the skilled resources or infrastructure to utilize the latest technology. This is where IT outsourcing comes in handy. Outsourcing non-core functions like software and product development to top IT outsourcing companies like ashutec is an ideal alternative.

This not only gives you access to the highly skilled resources and best expertise but also saves expenditure on building infrastructure and hiring in-house teams. Furthermore, you won’t need a large capital sum to outsource IT functions.

2. Eliminates Large Capital Requirements

Many small enterprises are not well funded or don’t have the large capital to invest in building up the infrastructural resources. IT outsourcing will eliminate such requirements along with large capital upfront to invest.

Outsourcing gives more stability to your small enterprise in terms of financial situation. Being the cost-effective alternative, it enables you to keep your budget in check and still provide you with brilliant technological solutions that too without investing heavily.

3. Strengthens Company’s Focus

Any company’s strength lies in its primary products or services and the best way to grow and become profitable is to strengthen your focus on your core areas. Outsourcing non-core IT functions like software development allows small and medium enterprises to give priority to their core business functions.

This also enables management and high-level executives to dedicate their effort in coming up with company goals that complement your primary product lineup. Doing so gives you the freedom to create the big picture instead of wasting energy on non-core functions. Also, it’s more practical to outsource non-core IT functions to ensure everyone on board the team is focused on achieving the core business objectives.

4. Increased Productivity

When you outsource your software and product development requirements, your in-house team will be more able to concentrate on the tasks and responsibilities at stack. Since they don’t have to worry about the latest technological or infrastructural upgrades, it’ll enhance the overall productivity. Further, you’ll have access to a dedicated outsourcing team to help you navigate through any technical issue. Thus, no more waiting around to resolve IT-related problems.

In a nutshell, IT outsourcing aids your small or medium enterprise in improving the performance, efficiency, and productivity of your in-house team.

5. Time-Zone Flexibility

Another reason for small businesses to consider IT outsourcing is time-zone flexibility. Outsourcing your software development requirement enables you with round-the-clock services, meaning the work would go on even when you are fast asleep.

Hiring offshore outsourcing companies like ashutec will help you reap the maximum benefits of time-zone difference and even work outside your enterprise’s primary work hours. An enterprise based in Australia may have closed for the day at 7 o’clock in the evening in local time. However, your outsourcing partner in India may still be working on your software project till 11 or even past midnight.

6. Reduced Risks

Starting a business is risky and even owning and running a business is also a risk. Businesses with potentially lower risk are more likely to become profitable. Your small enterprise does have risks such as data and IT systems breakdowns or being hit by ransomware, which can ruin your brand’s reputation.

An experienced IT outsourcing partner helps protect your IT systems and networks from hackers and actively manage firewalls to prevent any cyberattacks. So, the bottom line is outsourcing IT roles definitely reduces the risk your small or medium enterprise has to bear.

7. Saves the Most Important Resource: Time

The most important resource small enterprises have is time, not money. Running a business is not an easy job, you need time to find and train your internal teams, time to come up with ideas to grow your business, or time to create new software or fix issues in the existing one.

Bringing in help from external sources would allow your business to efficiently manage many aspects including IT. Global outsourcing service providers bring in the necessary and essential qualifications, specialization, and expertise to blend perfectly with your professional culture. They’ll take over a range of responsibilities and ensure their subordinates perform well to complete work within deadlines, saving significant time your enterprises can utilize more productively.

8. Enables You to Keep Up with Technology

Having a non-technological background keeps you away from the latest upgrades in the tech world. With limited knowledge on hand, it’d become hard to make suitable tech decisions, especially for small and medium businesses. That’s where IT outsourcing comes to the rescue.

Outsourcing to expert IT partners like ashutec helps you keep up with the latest advancements in the industry by providing innovative and unique solutions. Through outsourcing, you simply let the experts take care and make the best technological decisions to enable your business to have a competitive advantage over the rest.


Outsourcing non-core IT functions of your small or medium enterprises gives you inner peace and mental stability from having to deal with data breaches and ransomware attacks. Such disasters could potentially wipe out your reputation and destroy your business’s efficiency. However, all this can be averted by outsourcing IT functions like software and product development, application upgrade/migration, software testing, and other services.

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