Outsourced IT Services for Small Businesses 2024

For small businesses, choosing outsourced IT services offers a blend of cost savings, access to specialized skills, and increased flexibility. Yet, in a rapidly evolving tech landscape, particularly post-COVID-19, staying informed on outsourcing trends is essential. This article serves as a practical guide to understanding outsourced IT services for small businesses.

Let’s explore how to effectively integrate outsourced IT services into your business strategy.

1. What is IT outsourcing?

IT outsourcing services involve hiring external companies to handle technology-related tasks. They can range from managing your website to keeping your data secure. For instance, a small retail store might outsource the development and maintenance of its e-commerce website to ensure it runs smoothly. Hiring outsourced IT services for small businesses allows them to focus on sales and customer service.

Another example is a consulting firm that outsources its cybersecurity to protect client data, relying on specialists to stay ahead of security threats. This approach helps businesses access high-level IT expertise without the need to employ a full-time IT staff, making it a cost-effective and efficient solution.

2. How do IT outsourcing services work?

Here’s a closer look at the three main outsourcing models: onshoring, nearshoring, and offshoring.

2.1 Onshoring IT Outsourced Services

Onshoring refers to outsourcing IT functions to a provider within the same country. Onshoring is appealing due to its straightforward communication and cultural fit, ensuring businesses and IT providers easily align. It also streamlines compliance with local regulations, offering reassurance on data security and intellectual property matters.

However, the major drawback of onshoring for small businesses looking to outsource IT services is cost. Since the services are sourced domestically, the labor cost savings are significantly less than those achievable with nearshoring or offshoring, making it a less attractive option for businesses with strict budget constraints.

2.2 Nearshoring IT Outsourced Services

Nearshoring means outsourcing IT tasks to a neighboring country or region. It reduces the challenges of time zone differences and cultural discrepancies, so coordination becomes somewhat easier than offshoring. Nearshoring can offer considerable cost savings over onshoring by leveraging the lower labor costs of nearby countries. However, small businesses might still encounter mild cultural and language barriers, and the cost benefits may not be as substantial as those offered by offshoring, leaving businesses in a middle ground.

2.3 Offshoring IT Outsourced Services

Offshoring involves outsourcing IT services to a provider in a distant country, often across different time zones. This model’s primary advantage is the significant cost savings it offers. This model of outsourced IT services allows small businesses to access a global talent pool without the high domestic labor costs. Offshoring opens up opportunities for small businesses to scale and innovate by tapping into diverse skill sets and technologies at a lower price.

The main challenges, however, include navigating time zone differences, which can complicate scheduling and delay communication. Language barriers and cultural differences may also pose obstacles to seamless collaboration. And there are considerations around data security and compliance with international regulations. Despite these, offshoring remains a popular choice for businesses seeking maximum cost efficiency in their IT outsourcing strategy.

Read more: Offshore development rates by country

4. 6 Advantages of Outsourcing IT for Small Businesses

Outsourcing IT services offers small businesses, SMEs, and startups a strategic advantage, allowing them to achieve more with less. By partnering with top software outsourcing companies, these businesses can leverage expertise and efficiencies not readily available in-house, leading to superior outcomes in terms of quality, speed, and cost.

4.1 Access to the best IT talents

The backbone of successful IT outsourcing is access to exceptional talent. Leading IT service providers excel at recruiting top-tier developers, ensuring that your project benefits from the highest level of technical skill and innovation.

4.2 Optimized Workloads

Entrusting your IT needs to an outsourcing partner alleviates burdens from your team, freeing them to focus on core business activities. This reallocation of tasks ensures that your resources are invested in areas where they can generate the most value.

4.3 Unmatched Industry Expertise

The ideal IT outsourcing partner brings a wealth of industry experience and a track record of assembling skilled teams proficient in a wide array of technologies. This expertise is instrumental in navigating the complexities of software development.

4.4 Reduced Risks​

When you deal with an Outsourcing IT company, opting for a seasoned software development team significantly mitigates project risks. A reliable IT outsourcing company employs best practices to enhance project adaptability and minimize potential downtimes, safeguarding your investment.

4.5 Faster Time to Market

Competent IT outsourcing companies tailor solutions to fit your unique requirements. They deploy the right resources to meet project timelines. This capability is crucial, regardless of whether you have an in-house IT team, ensuring your product reaches the market promptly.

4.6 Guaranteed High quality

When you sum up these benefits, the outcome is clear: outsourcing IT functions within small businesses to a reputable firm invariably leads to a high-quality product. It’s important to vet potential outsourcing partners thoroughly, considering their portfolio and client testimonials to gauge their capability and reliability.

Learn more: How to mitigate risks of software development outsourcing

5. When should small businesses start IT outsourcing services?

Small businesses should consider starting IT outsourcing services when they encounter specific operational challenges. Here are key indicators that it’s time that entrepreneurs look into IT outsourcing:

• Encountering a Talent Shortage: When finding skilled IT professionals becomes a hurdle—especially for niche or advanced technology roles—outsourcing offers access to a global talent pool, making it easier to find the right expertise without geographical constraints.
• Facing Specialized or Temporary Needs: Projects often require specialized skills for a short period. Outsourcing is ideal for filling these roles efficiently, connecting you with experts precisely when you need them, without the long-term commitment of hiring full-time staff.
• Dealing with Complex Projects: If a project’s complexity exceeds your team’s current capabilities, outsourcing to specialists who have the right experience and technical know-how can ensure your project is completed successfully and efficiently.
• Striving for Faster Market Entry: When speed to market is critical, and your internal team cannot meet demanding deadlines, outsourcing can provide the necessary boost to ensure your product or service launches on time, keeping you competitive.
• Needing Support and Consulting: For ongoing projects that need revitalization or expert consultation to navigate through challenges, outsourcing firms offer valuable insights and support to steer your project back on track.
• Looking to Save Costs: If the cost of expanding your in-house team is prohibitive, outsourcing presents a cost-effective solution. It allows you to sidestep the expenses associated with hiring, training, and maintaining additional staff, while still accessing high-quality IT services.

Learn more: Checklist to hire an offshore development team for startups.

7. What SMEs need to consider before outsourcing IT services

Before deciding on the ideal outsourcing team for your needs, ask yourself these 5 questions.

7.1 What specific skills need to be outsourced?

Every project is a distinct entity, with unique challenges and demands. SMEs need to clearly identify the specific skills and technological expertise required to turn their vision into reality. This might range from cloud computing services and data analytics to mobile app development or cybersecurity. Understanding these needs upfront helps in selecting an outsourcing partner with the right competencies.

7.2 What kind of workflow would be best for this IT project?

The complexity and nature of your project will dictate the most effective workflow model. From agile methodologies that support flexibility and rapid iterations to more traditional waterfall approaches for projects with well-defined stages, the chosen model should enhance collaboration and efficiency. Engage potential IT outsourcing partners in discussions about your project to explore the best fit for your operational style and project requirements.

Learn more: Agile vs Waterfall methodology: Which is better?

7.3 How complex is the IT project?

The more complex a project, the greater the need for a partner with a proven track record of managing and delivering complex solutions. Evaluate whether potential IT service providers have the depth of experience and the technological breadth to handle your project’s complexity, especially if it requires integrating multiple technologies or delivering scalable solutions that can evolve with your business.

7.4 Can you and your IT outsourcing service providers match workflows?

Effective collaboration between your team and the outsourcing service provider is pivotal. Consider factors like time zone differences, cultural nuances, and language barriers, which can impact workflow synchronization. Open, transparent communication and compatibility in working practices ensure smoother project execution and minimize misunderstandings.

7.5 What is the reputation of your outsourced IT partner?

Checking references and past projects of the outsourcing services company will always provide insight into a company’s work quality. Look for evidence of their commitment to quality, their approach to problem-solving, and their experience in your industry. This due diligence helps in choosing a partner that not only meets your technical needs but also shares your values and vision for success.

Read more: How to lead your offshore development team efficiently?

8. TOP 5 outsourced IT services companies in Vietnam

InApps Technology

• Founded: 2016
• Location: Ho Chi Minh City, Vietnam.
• Email: sales@inapps.net

InApps Technology has been the top software development company that provides IT outsourcing services for many start-ups worldwide after only 5 years in the technology business. Their services are focused on adaptable solutions, custom-fit, and meeting customers’ demanding deadlines.

Website development, outsourcing mobile app development, UI/UX design, and offshore development are available. With up to 400+ web and mobile app development projects, InApps Technology steadily reveals itself to be an impressive member of the outsourcing game, starting small but impacting the market.

Saigon Technology

• Founded: 2012
• Location: Ho Chi Minh City and Da Nang, Vietnam.
• Hotline: (+84) 88873 9363
• Email: sales@saigontechnology.com

Saigon Technology specializes in web and mobile app development for the Vietnamese market. Their expertise lies in delivering numerous software outsourcing and development alternatives at cheap pricing, thanks to their 170 software engineers.

Their expertise spans a variety of technologies, including Azure, AWS, ReactJS, Microservices,.NET Core, NodeJS, AI, PHP, Angular, and others.

Savvycom software

• Founded: 2009
• Location: Hanoi, Vietnam
• Hotline:
• Email:

Savvycom Software, which started in 2009 with a small team of IT professionals, has grown into a dream-maker with visionaries that design, develop, and deliver products and digital solutions that suit the needs of today’s markets.

They have two main services: software product development and software testing. They have won various accolades over the past ten years due to their zeal for technology initiatives and an energetic workforce with a professional and serious attitude toward clients.

Powergate software

• Location: Hanoi, Vietnam
• Email: contact@powergatesoftware.com

Around 200 projects have been completed by PowerGate Software for clients worldwide.

Their teams of hundreds of hand-selected in-house engineers are specifically chosen for their modern approach to producing your unique software solutions, led by seasoned technology executives. They’ve created, developed, delivered, and supported projects from start to finish, transforming them into worldwide recognized market-leading products.

TP&P Technology

• Location: Ho Chi Minh City, Vietnam
• Email: info@TPPTechnology.com

In Viet Nam, TP&P is a leading and pioneering outsourced IT service provider for not only SMEs but also large organizations.

TP&P applies its extensive experience and specialized knowledge to various incubator investment, and service provision strategies, including software development, business process outsourcing, IT infrastructure and application managed services, mobile application development, and business solution consulting and deployment.