There are many debates whether your IT business functions should be outsourced or not, and these debates are becoming hot now, when IT outsourcing becomes one of the major ways to cut costs and increase business performance during the current economy state. According to Outsourcing Institute, many business owners and top executives choose outsourcing these days due to the following reasons (explained):

1. Reduce and control operating costs (vitally important, especially if you take in consideration not only the salary, but other things from office rental and equipment to social package and benefits).
2. Improve company focus (helps to focus on what’s really important for the business)
3. Gain access to world-class capabilities (the combination of specialization and expertise gives clients a competitive advantage and helps them to avoid the cost of chasing technology and training).
4. Free internal resources for other purposes (redirecting from non core activities toward activities which serve the customer).
5. Resources are not available internally (IT resources shortage worldwide).
6. Accelerate reengineering benefits (reengineering improves critical measures of performance such as cost, quality, service and speed).
7. Function difficult to manage/out of control (outsourcing will be an option if the company examines underlying causes).
8. Make capital fund available (instead of acquiring resources through capital expenditures, they are contracted for on an “as used” operational expense basis).
9. Share risks (result is guaranteed by the contract).
10. Cash infusion (sometimes assets such as equipment, facilities and others are sold to the provider which brings cash inflows).