Iknasoft has evolved as one of the leading IT outsourcing service providers providing world-class quality services to clients in UAE & across the globe.

IT Outsourcing is one part of the industry that has grown tremendously, thus being a valuable solution to various companies. Both large companies and startups utilize the advantages of outsourcing their businesses. The outsourcing method helps in minimizing costs or in improving competitive advantage. 

With a professional journey of over a decade, Iknasoft has an experienced team that provides exceptional IT Outsourcing services to clients across the globe. 

This session explains IT Outsourcing services. 

What is IT Outsourcing?

IT Outsourcing is the process of using external resources by redistributing some or all of the IT functions required in a business. In IT Outsourcing, a company shifts a part of software development outside the in-house structure to minimize costs and control operations. The task implementation is handed over to a partner who supervises relevant things. 

The following are types of IT outsourcing:

  1. Onshore
  2. Offshore
  3. Nearshore
  • Onshore: Hires professionals located in the same or a nearby city, and is an ideal option to bring everything under control at an affordable cost
  • Offshore: Outsourced to another country to save maximum cost
  • Nearshore: Distributing professionals to neighbouring countries within the same time zone. 

As mentioned earlier, lesser pricing motivates companies to implement an IT outsourcing business model. The main factor is that IT outsourcing services cost lesser in various countries. 

The table below shows how rates differ on an hourly basis:





Eastern Europe


Western Europe







IT Outsourcing retailers could either take full responsibility for all IT maintenance and support or provide abundant support for the internal IT team when required, also known as co-sourced IT support.

Why is IT Outsourcing Necessary?

Here are the major reasons why IT Outsourcing is required:

  • Domain Expert with an idea
  • Have an early-stage startup
  • Need technical support

1. Domain Expert with an idea

For an industry expert with innovative ideas who solves real problems, IT outsourcing is an ideal choice. The main goal is to enter the market and test the solution instantly. An outsourced team helps to validate the idea, create an MVP (Minimum Viable Product), and implement changes in the product as per the requirements. It helps to save money, and time and also enables you to reach the goal. 

2. Have an early-stage startup

In most cases, young startups spend money quicker than getting a robust team and a ready-to-market product. You could hire a full-cycle product development studio covering all the weaknesses and giving a better life to the product!

3. Need Technical Support

Although you have a ready solution, it needs certain technical improvements, such as structures for backend components, new language, and integrations with certain enterprise apps, UI & UX design. There are functions covered by IT outsourcing and thus saves you time that would rather have spent on finding suitable staff. 

Benefits of IT Outsourcing

How is IT outsourcing an advantage to companies? Let us look at the key benefits:

  • Lesser IT costs

Functions in IT outsourcing converts fixed costs to variable costs, whereby companies pay only for the resources and the time utilized. The cost incurred in hiring IT employee such as training, insurance, employment taxes, and retirement plans would be eliminated. 

  • Global Choice

Skills and resources that might not be available to hire locally could be abundantly found elsewhere. IT outsourcing enables IT professionals to reach out globally and provides more opportunities to businesses that outsource talents with specific skill sets. 

  • Implementation

An IT outsourcing service provider may have the resources and expertise to initiate new projects immediately. If a business did not have a larger IT team or software developers to manage the technology, they could easily and quickly start implementing the required programs if they outsourced, rather than spending more time hiring skilled employees and developing internal platforms. 

  • Security

Sometimes, businesses prefer to outsource their cybersecurity to a third party. If a team does not have security personnel, IT outsourcing provides tools to quickly access threat intelligence, detection, and response. 

Steps involved in IT Outsourcing

The key stages of the IT outsourcing process are as follows:

  1. Assess (developing a strategy)
  2. Propose (selecting a service provider)
  3. Due Diligence 
  4. Obtain a contract
  5. Implement
  6. Manage or Deliver
  7. Transfer or terminate the contract

1. Assess (develop the strategy)

This is the first phase of outsourcing and is the most difficult. We do a thorough evaluation of its sourcing requirements. 

2. Propose (select a service provider)

To get relevant information from the service providers, we create and send one of the following documents to the external market:

  • Information request: Determines who would be able to deliver the required services
  • Proposal request: Helps to determine the bidding process and contract terms
  • Quote request: Helps the company to gain awareness on the cost of services

3. Due Diligence

In this phase, we gather and assess information about each other’s capabilities to
develop a structured relationship. 

4. Obtain a Contract

In this phase, we standardize our business relationships through a written agreement,
negotiate specific terms of the relationship, and sign a contract, like one of these:

  • Master Service Agreement (MSA)
  • Service Level Agreement (SLA)
  • Non-disclosure Agreement (NDA)

5. Implement

Once the contract is signed, we begin to alter resources and responsibilities from the
business to the outsourcing company, thus representing the official launch of the

6. Manage/ Deliver

This is the longest phase as we need to manage the business and maintain a smooth working relationship throughout the contract.

7. Transfer/Terminate the contract

Being the last phase of IT outsourcing, return involves transferring resources and responsibilities back to the original companies. As the first project completes, the outsourced teams start the next project, either on maintenance or developing a software product. Once they finalize, the relationship would last for a long term! 

IT Outsourcing Services at Iknasoft

Over the last decade, Iknasoft has evolved as one of the leading IT outsourcing service providers providing world-class quality services to clients in the UAE and across the globe. Where outsourcing takes most of the time and money, Iknasoft helps you minimize costs and save a lot of time in hiring skilled teams for projects. We at Iknasoft ensure the following when serving you with the best outsourcing services:

  • Peace of mind: Systems controlled by technology experts from leading outsourced IT support team
  • Reduced downtime: We fix every issue before it affects the system or brings to  your notice
  • Minimum Interruptions: Providing exceptional IT outsourcing services remotely or in a short time for the smooth running of your business

For assistance in IT outsourcing services, call Iknasoft.

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