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BusinessComputers and Technology

IT outsourcing: The good, bad and ugly

The business practice of sub-contracting specific IT functions to third-party companies specializing in the same.  Irrespective of their location around the globe is known as IT outsourcing.IT outsourcing companies offer varied portfolios offering services right from pre developmental planning, blueprints, etc. to post-delivery maintenance and support.

While they are a necessity for businesses that prefer focusing on their core competency only and not getting into the tertiary verticals, in recent years, IT outsourcing has also emerged as a key force driving the industry, thanks to the data and real-time information available at disposal. Moreover, the availability of skilled resources in the budget has recently put India as a key center of global outsourcing.

However, a pool of industry experts consider outsourcing as a pure-play cost-reduction activity and underestimate the changes that the host organization, its people, its processes go through. Also, the amount of data-based insights and learning this structure offers often proves to be the differentiator over the other players in the market.

A mobile app development company does offer enhanced budget flexibility and control by enabling businesses to pay for only the services and functions they need, only when they need them. TechAhead offers not only real-time and measurable improvement in the bottom line but also keeps the information supplement for better decision making, available.

Sourcing, procurement, and vendor management (SPVM) experts facing the dearth of time and resources to attend more to stakeholder management, performance metrics, data analytics, and process refinement find outsourcing relatable and indispensable.

Some of the most outsourced activities include:

  • Customer support division
  • Financial due diligence/ Primary market research
  • Identifying potential suppliers/ customers and channel partners
  • CA/Govt compliance and corporate affairs
  • Initial responses to Request For Information, Request for Proposals, query responses
  • Hiring consultants etc.

While Outsourcing does give you privileges like lower overall human resource costs, access to a larger talent pool, not having to hire permanently, etc. it also brings along a fair share of caveats or risks. Losing control of the process is one big concern. While you can always give directions to the concerned vendor, you have to give away a first-hand view of the process. Whether it is a conscious decision or a situational requirement varies from client to client.

Interpersonal fluency or communication between the host and vendor teams becomes a challenge. Differences in time zones, internet connectivity, different preferred modes of communication (call, mail, message, etc) add up to challenges restricting effective and precise information flow. Quality of delivery is another important factor resulting in bad experiences.

Since the development phase is missing for the host company, they get to know about the product only after development. This often results in expectation mismatch with the quality of delivery.

Here are different ways in which a mobile app can push your business forward very quickly:

Increased Brand Visibility

When you include a mobile app in your digital marketing strategy is a smart strategy to increase your brand awareness and get an edge over your competitors who are not yet leveraging the power of the mobile app. A mobile application represents your logo, colors, design, products, services, etc., in the best way possible.

Enhanced Customer Retention

You might have done all the hard work in acquiring your users. But if you are not retaining them for a long time, you miss out a lot as loyal users are your best bet to make the most money from. A mobile app can keep your user engaged with in-app messages, push notifications, email, etc. Can compel them to keep coming back for more.

Strong Community

As a business owner, you must build a robust community where people can come to interact with each other. They can connect with other customers, take their reviews, and ask their queries if any. A strong user community can enhance your customer retention significantly.

Personalized Service

Personalizing your mobile app development plays a significant role in generating good engagement and conversions. Allowing your users to customize a product or service based on their own preferences gives them the freedom to express their individuality.

Build Customer Loyalty

Building customer loyalty is the heartbeat of every business and a mobile app is the best medium to build it. It gives you a channel to attend and interact with your customers personally. Business owners should improve the customer experience on a constant basis to turn their users into loyal brand advocates.

An engaging mobile app can skyrocket your business by increasing customer engagement, building brand value, and generating revenue. Many top mobile app development companies are helping companies across different industries take their business digital through mobile apps. It’s time for you to take the plunge.

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