What are the advantages of IT outsourcing in Germany?

No company has to work through all business areas on its own. Outsourcing, i.e. the outsourcing of certain areas of responsibility to external service providers, has been known for some time and has in principle also proven effective in cooperation with foreign companies. But when it comes to call centers or technical issues, a German-speaking partner makes sense. In the following article, we take a closer look at IT outsourcing and the benefits of German-speaking partner companies. Because anyone who delegates their IT consulting to German partner companies avoids language and cultural barriers. In addition, on-site appointments are easier to make, as air travel and long travel routes are no longer necessary.

Why should the outsourcing of IT infrastructure be delegated to German companies in particular? Outsourcing to foreign companies can make sense for some production steps or services. However, IT consulting and cyber security in particular are a sensitive field. As hacker attacks are increasing and affecting companies more and more frequently, German-speaking partners are recommended. Because there are no language barriers nor cultural barriers. In addition, the IT consultant can be on site quickly if necessary.

What is outsourcing?

The transfer of certain business areas and corporate structures to external service providers is by no means new. Nevertheless, the term is still sometimes associated with negative associations today. Because of a lack of expertise, some equate this equally common and legitimate business practice with outsourcing based purely on the pursuit of profit to regions with lower wage levels.

However, that would be much too short-sighted. Denn Especially in IT outsourcing, highly specialized and often also domestic German offer partner companies their services to.

* there are no language barriers

* Experts can perform complex IT and implementation tasks much faster and more efficiently than their own employees

* Entrepreneurs who hire external IT service providers save time, money and nerves and can therefore focus entirely on their own business

Which services and business areas can be outsourced?

In fact, today seems More companies are interested in outsourcing than ever before. Large and well-known companies, including Amazon, show that outsourcing can be worthwhile. However, outsourcing does not make sense for all production processes and business areas.

Are interesting for outsourcing especially:

• Telephone activities and hotlines, which then take over external call centers

but also

• IT services from cloud services to cyber security

The latter in particular is becoming increasingly important, because hacker attacks on your own IT infrastructure can not only paralyze authorities and public institutions.

Benefits of outsourcing for German companies and SMEs:

Since industry giants such as Amazon are leading the way, the question naturally arises as to what extent German companies, and in particular SMEs, can benefit from outsourcing certain areas of business. German SMEs generate annual sales of around 5.6 trillion euros. In 2021, more than 6 million companies and self-employed people were classified as part of the SME sector.

In fact, the cost savings of outsourcing are only one aspect. Because in addition to financial savings, it remains to be noted that many external service providers experts in their field are.

This applies to questions relating to IT infrastructure as well as to marketing. It is not for nothing that numerous companies are now outsourcing their PR and social media activities.

This is based on the insight that external providers act significantly faster and are more efficient. Even if a telephone hotline is set up, entrepreneurs benefit from call centers, which can respond much more flexibly to inquiries and complaints than if this service remained in-house.

Historical development of IT outsourcing in Germany and worldwide:

Outsourcing has also been practiced for decades in the areas of catering or building cleaning. Yet economic historians date the birth of outsourcing even further back.

So already represented Adam Smith (1723-1790), the Scottish moral philosopher and Founder of classical national economy, the view that a Division of labor and specialization makes economic sense be. By the 1960s at the latest, US companies began systematically delegating the production of certain components to external suppliers.

How have globalization and digitization influenced outsourcing?

It is also impossible to deny the influence of increasing globalization on the issue of outsourcing. Because in global competition, only those who offer a comparatively low price can usually hold their own.

So the topic won outsourcing With the rapid growth of global trade relations, both importance and explosiveness. Because it is often cheaper Outsource certain lines of business instead of increasing your own workforce, so that outsourcing actually results in an improved balance sheet.

In addition to this development, which is often criticized, the emerging digitalization also contributed to a boom in outsourcing. Because suddenly, certain tasks, such as customer management or order acceptance, could be carried out from anywhere in the world. And to this day, particularly in the IT sector, counteract the shortage of skilled workers through outsourcing.

Last but not least, digital transformation and the advent of external service providers played their part in outsourcing.

External service providers and managed services are on the rise!

In fact, the issue of external service providers became even more important with the advent of so-called managed services from 2008. IT services such as cyber security or a managed services provider (MSP) are provided by specialized companies.

And for good reason: Because Gain firewalls and IT security from the point of view of all experts More and more important. After all, attacks on your own IT infrastructure can result in high costs and, in the worst case, jeopardize the existence of entire companies

Comprehensive IT strategy consulting is therefore essential, because Only when the IT infrastructure is consistent and well protected can companies concentrate on their actual core business.

Effects of outsourcing on German companies:

Now, of course, it is human nature that Outsourcing not only has advantages is. A conceivable desire for profit on the part of the company has already been discussed several times. But companies themselves are also making themselves dependent on their external service providers, at least to a certain extent.

In addition, as more and more companies outsource certain business areas and areas of activity, less money is almost invariably invested in training their own employees.

How medium-sized companies can benefit from outsourcing

Nevertheless, the benefits of outsourcing outweigh, especially for medium-sized companies in Germany. Denn Experts can do certain tasks, especially in the technical sector and around cloud services, much faster and more correctly than your own employees.

This not only saves money for complex training and continuing education. Instead, all work processes can be carried out much more efficiently and risks such as a failure in cloud computing or successful cyber attacks are minimized.

How digitized are German companies?

In this context, the question is how far digital transformation has progressed in Germany in the meantime and what significance cloud-based solutions have for German companies and SMEs.

In this case, too, the figures and statistics clearly prove that one out of four sales is generated via digital sales channels and 30 percent of all companies choose the digital route when purchasing spare parts and accessories.

In the area of cloud services and customer management systems, it remains to be noted that around 13 percent of companies are currently connected externally with their customers.

Can cultural differences influence outsourcing?

German-speaking contacts are recommended, especially for complex technical issues such as cyber security or in the area of financial informatics. In addition to language barriers, outsourcing abroad may also involve cultural differences, as various scientific surveys have shown.

This starts with an understanding of design, ranges over factors such as distance of power and work attitude, and may end with the perception of the role of women. Therefore, without the subject toward much Making cooperation with international external service providers a cultural challenge.

In addition, it may also be the case that time is of the essence and an on-site appointment is inevitable for maintenance work. Outsourcing within Germany should therefore be considered, particularly in the area of cloud-based solutions and managed services.

External service providers as the basis for successful outsourcing in Germany

With the mdSystec Group Is one of these competent IT outsourcing providers in Germany for IT issues and managed services in Mitterskirchen, in the middle of Rottal-Inn: “As an IT professional for your company supervises and manages our company Your IT environment and thus ensures that the entire corporate structure runs smoothly!”

As a competent partner for all IT issues, the mdSystec Group advises on the subject of cyber security, but as a young and innovative company, in contrast to major cloud providers, it also offers individual solutions.

According to the company's credo, this allows customers to innovate their future and, without further burdening themselves with IT, can focus entirely on their core competence, namely their own business.

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