Today, at least 300,000 projects are outsourced by the US alone to several companies abroad. Why? Well, one of the top reasons for any company is lowered costs as any IT outsourcing company can provide a lower rate, that too with customized services. Thus, in the age of today, the IT outsourcing industry is growing at a very fast rate compared to other mainstream industries. To understand why do companies prefer to outsource, let’s go through these top reasons.

Lower cost

While some companies may hesitate outsourcing to different companies in countries outside, the lowered costs always win the case. For any business, the goal is always to maximize profit which can only be possible through reduced costs. IT outsourcing companies provide just the right amount of quality at a price lower than what the client company may have provided itself. That is the beauty of it. Lowered costs with the same quality. Why would any company not want to opt for such possibilities given how COVID-19 or excessive competition has pushed the profits down!


Reduced costs can only be made possible by having a lesser number of employees too which can happen through outsourcing. If your company wants to develop software, you would not want to go through the whole process of hiring a whole team for it, training them and then making that software a reality. Just reach out to an IT Outsourcing Company, take a quote and let them work on it. They will handle everything and provide you services in the time period you want it to be done. Sometimes very urgently too.

Better skills

The team you hire for a project, may not be that skilled or may need training. Why do that and take the risk when you can take the same service at lowered costs from people who specialize in working on that certain type of project! Besides, through outsourcing, you will have access to new skill sets, ideas, software, databases and technologies. There is also less risk of issues within the project.

Focused attention

When you hire a third party to complete a project for you or work long-term to build your software or websites, you get more time and direction. If you are a company that focuses on providing market insights to several businesses, you do not have to focus on making software for it. In other words, you do not need to focus on something which is not a critical revenue driver of your firm. Thus, you are able to better focus on expanding and growing your core business product rather than focusing much on its processes.

However, while these are very important reasons that a company may have outsourced, it is also very true that for any company, lowered costs and greater profits will be the single most important motivation behind outsourcing to a company within or outside their home country. However, quality must be very closely monitored.