Digitalization (Industry 4.0) is necessary for businesses 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.
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This article will provide three reasons to outsource information technology and explain how outsourcing can speed 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 various cutting-edge technologies like cloud, advanced analytics, and more. This exposure gives them in-depth knowledge of multiple technologies, which businesses can leverage to attain digitalization faster.
Moreover, having such expertise allows outsourced IT companies to 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.
Outsourcing information technology lets businesses access larger teams of technology experts, such as Systems and Software Engineers. For a fraction of the price of hiring 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 for outsourcing information technology to specialized IT companies is their industry specialization. IT companies specializing 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 maximize the technology and streamline business operations fully. By understanding the industry’s particularities, these technology companies can help attain digitalization in a shorter period.
For example, we often find bottlenecks in warehouses and distribution centers’ receiving processes. These bottlenecks are often associated with a lack of technology and obsolete processes that limit receiving capacity while 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.
Source: The Robot Report
3. Technological Evolution
The third reason for outsourcing information technology to specialized IT companies is to keep up with the always-evolving technology landscape. In our industry, which focuses on warehouses and distribution centers, we observe that the surrounding technologies continuously evolve in terms of maturity, market acceptance, and utility. We utilize frameworks such as the S-Curve of Innovation, Technology Adoption Life Cycle, and Hype Cycle to keep track of these changes. Using the information gathered from these frameworks, we can monitor the evolution of technologies and advise our clients on 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.
Technology companies must stay informed and trained on the latest technological advancements. The IT industry is constantly evolving, so it’s crucial to keep up. Specialized outsourced IT companies are always searching for the most innovative technologies and testing them to assess their reliability and viability.
The testing typically involves trying the technology in a lab, conducting small pilot programs with trusted customers, and then fully deploying it to the rest of the market.
Companies that establish trusting relationships with these IT vendors and maintain a long-term vision are positioned to operate smoothly in the present and remain competitive in the future as technology evolves.
Partnering with a specialized IT company is an effective way to achieve digitalization and ensure industry competitiveness.
Summary
The article discusses three reasons for outsourcing information technology. It explains how specialized IT companies can help businesses achieve digitalization quickly and cost-effectively. These companies have the technology expertise and industry specialization. They are always up-to-date on the latest technologies and their evolution. As a result, they can effectively manage the changing nature of a business’s information technology. This helps achieve 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.
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