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dateMay 26-30

Anna Vasylko
Khrystyna Bachyk
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3 April 2025

11 min

IT outsourcing: pros, cons, and how to make it work

Is IT outsourcing your secret weapon in 2025? Discover the pros, cons, and how to master it.

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It feels like everyone is outsourcing these days. In fact, outsourcing isn’t just a trend—it’s the new normal. The global IT outsourcing market is on track to hit $812.7 billion by 2029, and for good reason.

From startups to established enterprises, companies turn to outsourcing for software development services, cybersecurity, cloud management, and IT support. The perks? Cost savings, top-tier talent, and seamless scaling. The challenges? Misaligned expectations, fear of losing control, and communication gaps—factors that can turn a promising partnership into a costly mistake.

At Brainence, we’ve seen it all—booms, downturns, a pandemic. Eight years in, with dozens of successful projects across the globe, we know the pros and cons of outsourcing IT. We understand what really concerns our clients, and how to address these concerns.

So, what does it take to make outsourcing work? We want you to know exactly what lies ahead.

Table of contents

Why should you outsource?

They say time is money. And in business, there’s one tried-and-true way to trade money for time: outsourcing.

For years, outsourcing has been synonymous with cost saving—and for good reason. It remains one of the major factors behind why companies choose to do it. But there’s more to the story than just cutting costs.

As an outsourcing partner, we often meet executives caught up in day-to-day operations that don’t drive meaningful growth. Meanwhile, their competitors who delegate these tasks can focus on strategy, innovation, and scaling. Over time, that’s what sets the high performers apart from those just getting by.

Now, how can you benefit from IT outsourcing beyond cost savings?

By entrusting your IT operations to an external partner, you free up valuable time and resources to focus on what matters most—growing your business.

Think about it: rather than spending hours managing an internal development team, you can focus on expanding your market presence, strengthening customer relationships, or launching new products.

Let’s say, you’re a retail company outsourcing mobile app development. Instead of getting caught up in the technical side, you can concentrate on enhancing the customer experience and broadening their product offerings, while leaving the tech to the experts. This way, you’ll align your resources more effectively, speed up decision-making, and, most importantly, keep your eyes on long-term business growth.

And that’s just the beginning. Outsourcing isn’t just about offloading tasks—it’s about accessing top talent and becoming more agile. So, what other benefits can outsourcing IT services offer?

Benefits of IT outsourcing

Cost savings

Outsourcing often provides significant cost reductions. High-skilled engineers can be expensive, particularly in local markets, so hiring externally offers a more cost-effective way to maintain (or even increase) the quality of expertise.

Running an in-house IT team involves salaries, training, infrastructure, and licensing fees. Outsourcing shifts these burdens to the contractor, allowing you to pay only for the services you need—helping cut overhead costs, which is one of the biggest benefits of outsourcing IT support.

According to a recent Deloitte report, 80% of executives plan to increase or maintain their outsourcing investments, with cost reduction and skilled talent being key drivers.

For example, countries in Central Europe like Ukraine and Poland offer an ideal balance—talented professionals, low taxation, and government support, all with hourly rates typically between $35–100. This region represents a sweet spot for high-quality software development at a fraction of the price.

World-class talent

When you hire locally, you’re typically limited to a smaller talent pool, which often means compromises on quality or availability. Outsourcing, on the other hand, opens up access to top talent from all over the world. If your project requires specialized skills, expanding your search beyond local markets becomes a smart choice.

Sometimes, local teams simply don’t have the depth of experience to handle specific challenges. These gaps can lead to delays and stagnation. Take data scientists in Canada, for example: with a talent pool of just 25,000 professionals, finding the right fit can be tough.

Now, compare that to Eastern Europe, where the situation is quite different. With over 100,000 professionals specializing in data science, AI, and machine learning, this region offers a far larger and growing talent pool. And as demand for AI, analytics, and big data grows, that talent pool continues to expand, making it easier to find exactly the expertise you need—without the limitations of local hiring.

No need to go far: with a 100,000+ talent pool, Brainence can assemble a highly qualified team (including data scientists, if you wish) in just 4–8 weeks, ready to develop your solution.

Risk mitigation

IT comes with its fair share of risks—cybersecurity threats, software failures, and system downtime, to name a few. Outsourcing helps lighten that load. External partners bring deep expertise in managing these challenges, significantly reducing the risk of costly disruptions.

A key factor in this is service-level agreements (SLAs). These contracts set clear performance and quality benchmarks, holding providers accountable while ensuring your IT operations meet the highest standards. With the right outsourcing partner, you’re not just sharing risks—you’re actively managing and minimizing them.

Faster delivery cycle

With IT outsourcing, you’re not just getting access to talent—you’re also speeding up your project timelines. Imagine having an entire team of middle and senior specialists at your disposal, all working towards the same goal. More hands on deck means more work gets done, and faster.

Whether it’s an app launch or a critical software update, outsourcing enables you to accelerate your development cycle without compromising quality. At Brainence, for instance, we optimize our processes so your project progresses efficiently. This flexibility allows you to hit deadlines on time and maintain focus on your internal objectives, like strategic planning and team coaching, all while ensuring seamless product deployment.

Enjoy the benefits of outsourcing IT services

Explore the benefits of IT outsourcing services with Brainence. Tap into global talent, tap into global talent, and build your solution.

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Cons of IT outsourcing and ways to avoid them

Despite the undeniable benefits of IT outsourcing services, there are common concerns and potential downsides that you should be well aware of.

Communication gaps

Miscommunication is one of the biggest risks in outsourcing. Sometimes it looks like a “telephone” game where the message gets lost in the middle.

It’s a valid concern: Will your outsourced team truly understand your vision? Could cultural or structural differences cause things to go off track? The good news is that these issues can be avoided with clear, direct communication from the start.

At Brainence, we ensure nothing gets lost in translation:

  • We only hire developers with Upper-Intermediate or Advanced English skills, experienced in global environments
  • From day one, we engage directly with key stakeholders to fully understand their needs, goals, and challenges
  • We also build strong relationships with all team members—whether they’re engineers, designers, or data analysts—ensuring nothing stands in the way of effective collaboration.

Time zone differences

Time zone differences can either slow things down or turn into a continuous, 24-hour workflow. The key is in how you structure your communication.

To make it work, optimize workflows for asynchronous communication, ensuring that work progresses even when teams aren’t online at the same time. Strategically plan overlapping hours to ensure critical discussions happen in real time.

The best part? While you rest, your outsourced team is working, pushing the project forward. With the right approach, time zones become an advantage, not an obstacle.

Brainence global team stays connected Our global team stays connected, making sure the project never stops

Loss of control

Outsourcing means handing over work to a team that’s not on-site, which can leave you feeling like you’re losing control. While you can set the direction, you may not have full influence over their approach, decision-making, or how they prioritize tasks.

It’s true that the outsourced team operates with a certain level of autonomy. But here’s the twist: losing control doesn’t mean losing the ability to steer the project toward success.

How do we make sure we stay aligned at Brainence? We keep clients involved at every stage:

  • First, we kick things off with a detailed meeting between our development team and key stakeholders to nail down the workflow and establish regular check-ins.
  • Together, we choose the right tools for seamless collaboration and communication.
  • Throughout the project, we follow agile practices, with regular demo meetings to showcase progress and gather feedback.
  • And to keep everything transparent, the team provides weekly reports on working hours and deliverables. This way, our clients stay in the loop without having to micromanage.

Impact on company culture

When outsourcing is on the table, it’s easy to get caught up in the immediate benefits without considering how it could affect your company’s culture. But the truth is that outsourcing can have a significant impact on how your team feels and functions.

A positive work culture is key to productivity, and it’s something you don’t want to risk when you bring in an outsourced team. The potential downsides? Employees may feel threatened or replaced, others may be confused about why certain tasks are being outsourced, or it may disrupt the flow of your day-to-day operations.

That said, outsourcing doesn’t automatically harm your company culture. But you do need to be proactive in ensuring it doesn’t. The first step is having honest conversations with the teams that could be impacted by these changes, addressing concerns early, and making sure everyone is on the same page. This way, you can integrate outsourcing smoothly and keep your internal culture intact.

How to maximize the benefits of outsourcing IT

To truly maximize the benefits of IT outsourcing, you need to take a strategic approach:

Choose your partner wisely. Your outsourcing provider is a critical extension of your team. Select one with a solid track record, a deep understanding of your needs, and expertise to deliver the solutions you need. Check out our guide where we help you choose your software development partner and succeed on the first try.

Set crystal-clear expectations. Detailed contracts and SLAs are essential. Define your goals, timelines, and responsibilities upfront to ensure smooth sailing throughout the project.

Prioritize security. Outsourcing doesn’t mean sacrificing security. Make sure your provider will do their best to protect sensitive data.

Keep some control in-house. Outsourcing doesn’t mean losing touch with everything. Retain in-house capabilities for strategic tasks that require direct oversight, like cybersecurity or key decisions.

Measure and adjust. Regular check-ins are key. Track progress, evaluate results, and adjust as needed to ensure you’re always moving toward the best outcome.

Partner with Brainence for your IT outsourcing needs

At Brainence, we specialize in delivering high-quality software solutions to startups and established businesses across various industries. Since 2016, we have been helping companies in sectors like healthcare, logistics, retail, education, and more.

What do you get from working with us?

  • Proven expertise in full-cycle custom web, mobile, and SaaS development
  • A highly skilled team of professionals who know how to get things done
  • A tech stack that’s always on the cutting edge
  • Flexible models: full-cycle software development or a dedicated team
  • Free, no-hidden-fee project estimates
  • A deep understanding of the pros and cons of outsourcing IT support
  • NDAs upon request for peace of mind

We’ve perfected our outsourcing process to ensure it works smoothly at every stage. Whether you need to build a solution from scratch or modernize your existing software, we’re here to make outsourcing a seamless and productive experience. Let’s talk.

FAQ

What is IT outsourcing?

IT outsourcing is hiring an external company to handle specific IT functions instead of managing everything in-house. Some businesses outsource all IT-related tasks, while others delegate only certain areas, such as cybersecurity or helpdesk support.

What are the most commonly outsourced IT services?

In our experience, companies most often outsource:

  • Custom software development
  • Maintenance, support, and helpdesk
  • Cybersecurity and data protection
  • Cloud computing and storage
  • Network management and infrastructure
  • Data analytics and business intelligence

What are the types of IT outsourcing?

Onshore outsourcing means working with an IT provider in your own country. It offers seamless communication, cultural alignment, and compliance with local regulations. The trade-off? Higher costs due to local labor rates.

Nearshore outsourcing connects you with a partner in a neighboring country, often within the same time zone. It’s a balance between cost savings and smooth collaboration. You’ll minimize language barriers and time zone challenges while keeping expenses lower than onshore options.

Offshore outsourcing taps into talent in distant regions with significantly lower labor costs. It’s the most budget-friendly choice but requires managing time zone differences, cultural nuances, and communication hurdles. The right processes, however, can turn these challenges into advantages.

Mind that outsourcing your IT project comes with pros and cons, no matter the model you choose.

Why is IT outsourcing important?

IT outsourcing isn’t just a cost-cutting move—it’s a strategic advantage. If you’re looking to innovate, scale, and stay secure, all while keeping your budget under control, outsourcing is your go-to choice.

You get expert-driven solutions without the recruitment hassle. Faster development, fewer risks, and the freedom to focus on what really matters—growth. IT outsourcing isn’t an option anymore; it’s the way forward.

Why do firms outsource their IT functions?

Three reasons: cost, expertise, and agility.

Building an in-house IT team? That’s pricey. Salaries, training, infrastructure—it adds up fast. Outsourcing flips the script: you pay for what you need, when you need it.

Then there’s expertise. The best specialists aren’t always easy to find nearby; sometimes you need to search across the globe. One of the greatest benefits of IT outsourcing is instant access to top-tier talent, from AI to cybersecurity, without the months-long hiring process.

And if your business needs shift, scaling an outsourced team is seamless‑expand or downsize without the stress of hiring or layoffs.

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