How IT Outsourcing Helps You Reduce Your Cost?      


Written by - adeena

January 13, 2023

Outsourcing is still an essential business strategy despite the current worldwide pandemic and economic crisis. Outsourcing companies handle customer support activities for about 54% of businesses. They can reduce expenses, which is helpful given the current financial turbulence. But exactly how does outsourcing save money? Let’s take a look at the different ways our team can help reduce your company’s expenses.

Lesser Equipment & Utility Expenses

Hiring a customer support or outsourcing development team doesn’t require the assets and equipment that the in-house team does. You must offer the apparatus including Voice over Internet Protocol (VOIP), desktops or laptops, headsets, and microphones, call recording software, automated dialing software, automatic call distribution software, etc. to your in-house team if you want to utilize one. You might also need to expand your business’s IT infrastructure to make a place for them, for as by purchasing additional servers and creating a larger room to house them. Additionally, if your business grows and uses more equipment, your energy costs will rise. Fortunately, you may outsource it rather than experience such a high investment expense. The tools for their support staff will be supplied by the outsourcing firm. 


The ability to complete the task at a very cheap cost and in a lot more effective manner is its most significant advantage. The salary distribution between emerging nations and Western industrialized nations is significantly different. The cost of the same task, which is performed in the West for a very expensive price, may be purchased in developing states for up to 60% less money.

cost effectiveness of IT outsourcing

Higher level of effectiveness

Projects that are outsourced are even more efficient and of better quality as compared to those of in-house development teams. Outsourced projects are done by individuals or groups who are more knowledgeable about the subject matter and have a wealth of expertise in it. This aspect instantly enhances the quality of the task and makes it possible to do it quickly and effectively.

Savings on investment

Building infrastructure does not require additional funds. When a task is outsourced, the partner that takes up the task makes the required infrastructure adjustments following the task’s requirements.

Cost-saving measures for hiring and training

When a specific project is outsourced, the organization does not need recruitment funds. Additionally, there will be no need to plan training sessions for the same. People who are already specialists in that field will be given the task. Furthermore, this will improve the work’s efficiency and quality.

Working around the clock

This provides several advantages in terms of time zones. The time zones of the hired person’s country and the country where the job is outsourced will differ. For instance, there would be a twelve-hour time difference if an American country outsourced its project to Pakistan. The task will be finished by the time one wakes up the next morning, so one may delegate it and unwind. As a result, there will be constant work, and this technique is especially useful for the days off during the week.

Quicker outcomes

As many things need attention, doing everything on one’s own decreases the effectiveness of the organization. However, when a company outsources its tasks or labor, it becomes simple since the outsourcing partner shares some of the weight. This makes it possible for ideas to be developed quickly into concepts and also aids in the quicker introduction of products, ideas, and concepts into the cutthroat market.

Overcomes labor force fluctuation

Often there are shifts in the working hours of the in-house teams, fewer people are available to work on a project, this occurs particularly during the festive and holiday seasons. As the workforce for an outsourced project will be available around the clock to work on the assignments, outsourcing the project helps prevent this issue.

 Talented Employees

There is a shortage of professionals in industrialized nations, or they are only accessible at exorbitant prices. Due to the low cost of labor, outsourcing jobs to developing nations gives employers access to a vast pool of highly qualified, effective, and English-proficient workers.

Risk Management

If a business should ever have issues because of natural disasters, technological challenges, or market swings, outsourcing might come in handy. The offshore outsourcing partners can then continue to work on their projects. This has been very helpful in getting the business back on track.

out sourcing and risk management

How Much Money Does Outsourcing Save Businesses?

You can save an unlimited amount of money. The International Organization for Standardization (ISO) estimates that outsourcing may help businesses save expenses by 15% on average. However, the real savings will vary depending on how many business functions you intend to outsource and other internal adjustments you wish to make. According to the Harvard Company Review, you might save costs by 20% to 30% by outsourcing non-core business procedures like:

  • Payrolls
  • Lead generation
  • Billing and payments
  • Recruitment

The benefits of offshore software development have made it one of the most popular business mantras globally. According to what we’ve just discussed, outsourcing is the best choice. Still not persuaded by the advantages of outsourcing? Check out the blog describing the reasons why you should outsource your software development.

Why Glowlogix?

At Glowlogix, we always strive to exceed customers’ expectations. Your clients are also our clients. Our improved IT services are created while taking into account the audience, the competitive market, and cutting-edge technology that are crucial to client happiness and retention. In the digital age, there are, in our opinion, limitless possibilities. To create distinctive software solutions that satisfy the needs of your end customers, we work to integrate cutting-edge technologies like Data Science, AI, and ML.

We provide the following IT solutions to businesses:


Hire our top-notch responsive development services to enhance your digital presence. We apply multiple technologies to reach optimal performance without compromising the visual appeal.


We have a pool of dedicated PHP developers who have remarkable technical knacks & leverage the power of web development. They are focused on delivering a quality solution to meet your needs.


We have a team of competent Digital Marketers who can tackle your projects according to the latest market trends. We share the goals of our clients and thus deliver digital marketing services to attain them.


We have a talented team of SEO specialists, capable of doing on-page SEO, off-page SEO, technical SEO, and SEM. We improve the visibility of your web pages to show in SERPs.


WooCommerce is one of our top recommendations for open-source e-commerce Shopfronts. We offer WooCommerce development services of motivated and trained Woo developers at a reasonable cost.


We have years of experience developing anything from personal WordPress blogs to extensive websites catering to your complex business needs. We deliver wide-ranging WordPress development services to our clients worldwide.


With our expertise in Shopify development, we transform your requirements to build a product ready to launch in the market. We aim to stand our clients out of the crowd.


Known for creating high-performing, feature-packed, digitally transformative, and fully scalable online experiences, we have the expertise to bring your Laravel website project to the next level.


We offer expert-level e-commerce design & development services for the Bigcommerce platform. GlowLogix is a trusted name for providing e-commerce solutions helpful in developing great Bigcommerce websites.


APIs were just a tool for developers once but have now become the substance for many business models. GlowLogix has the skills that link your third-party applications and websites via SOAP Web services, REST, or custom web services APIs.


Browser Extension development has added to the functionality of browsers, making the browsing experience, more valuable. At Glowlogix, we offer exceptional browser extension development services using the latest technologies to meet all of our client’s needs.


We create mobile applications by producing programs for particular software technologies using their exceptional skills and programming languages as per the requirements of the particular operating systems.

You May Also Like…