IT outsourcing companies provide on-demand services for network security, infrastructure management, disaster recovery, cloud services, data storage, general technical support, and sometimes, software development. The service entails hiring an external managed service provider (MSP) to handle various IT-related tasks and operate as an extension to the in-house team.  

The following IT services are commonly outsourced:  

• Technical support  
• Data security (security audits, malware protection, data backup and recovery)  
• Tech infrastructure planning  
• Helpdesk  
• Application, software, database, and custom platform development  
• Network management  
• Web development/web hosting  
• Telecommunications  
• Infrastructure – hardware, software, network installation and support  
• Data center management  
• Data storage 

When considering IT outsourcing service providers, businesses can choose based on location or collaborating model.  

Location-based IT outsourcing  

• Offshore outsourcing: Relaying IT tasks to IT providers in distant countries to take advantage of lower labor costs. 
• Nearshore outsourcing: Sending IT-related work to a company that shares a similar time zone or is geographically close. 
• Onshore outsourcing: Outsourcing a third-party service provider located in the same country.  

Model-based IT outsourcing 

• Staff augmentation: Hiring external IT specialists to join the in-house team temporarily and fill skill gaps without full recruitment. 
• Dedicated team: Assigning a dedicated team that works exclusively for the contracting company. 
• Managed services: Contracting a third-party company to provide network management services including call centers, network monitoring, and more. 

IT outsourcing service providers charge from $15 to $200+ per hour, depending on the services and the provider's location. When considering the cost-to-quality-ratio, businesses commonly hire Eastern European IT outsourcing firms, particularly from Poland, Lithuania, Romania, and Bulgaria. Here’s how other regions compare: 

In simple terms, the difference between IT consulting and IT outsourcing is that consulting helps you decide what needs to be done, while IT outsourcing companies do it for you. 

An IT consulting firm studies the IT infrastructure, identifies problems, checks for vulnerabilities, and recommends what systems, tools, or processes you should use. By contrast, an IT outsourcing company takes over specific work, such as managing infrastructure, maintaining software, handling support, or running day-to-day IT operations. 

The BSFI (banking, financial services, and insurance) sector outsources IT services the most. The majority of institutions in this vertical have a dedicated IT outsourcing firm that handles their software and cloud maintenance.  

Following as a close second are healthcare, retail, and eCommerce verticals. Businesses across these sectors hire IT specialists to accelerate their omnichannel, mobile, and personalization initiatives.