2 min read

What is IT outsourcing?

Published on
June 12, 2023
Maximilian Bielecki
CEO Essentio CodeLab
Daniel Reicher
Senior Consultant
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IT Oursourcing

As we at Essentio delve into the diverse world of IT outsourcing and offer such services, we celebrate the numerous advantages it brings to businesses across the globe. IT outsourcing is an effective solution for businesses seeking expertise in a range of digital services like software development for multiple platforms, hardware design, and manufacturing, among others. It enables companies to exchange intellectual value conveniently and, when necessary, also facilitates the exchange of hardware for testing purposes in embedded development​.

The year 2023 continues to witness the rise of IT outsourcing, with the COVID-19 pandemic reinforcing the necessity of such services. With remote work becoming the norm, more and more companies turn to IT outsourcing to fulfill their needs. This ongoing trend, coupled with an increasing demand for IT professionals, continues to drive the growth of the IT outsourcing market​.

IT outsourcing presents an array of benefits that make it a compelling choice for businesses. It offers access to a global talent pool, facilitating cost reductions, especially for businesses in the US and Western Europe outsourcing to regions like Asia, Eastern Europe, South America, and Africa. It provides opportunities for training specialists from scratch offshore, presenting a cost-effective alternative to sustaining a team in a developed country. Lastly, IT outsourcing provides ultimate scalability, an aspect that is particularly appealing to large corporations​.

However, it's crucial to recognize the potential risks associated with IT outsourcing. These include differences in legislation between the local and remote team's countries, potential language barriers, potential miscommunication due to lack of language mastery or soft skills, and the risk of poor planning leading to unsatisfactory cooperation with the remote team​.

Here at Essentio, we've found the perfect formula for mitigating these risks and amplifying the benefits of IT outsourcing. We've established our in-house development resources in Warsaw, Poland. Warsaw, with its flourishing IT sector, is an ideal location for nearshore development due to its proximity to other European countries, access to a vast talent pool, and competitive prices.

"With its strategic location, cultural affinity, and pool of highly skilled IT professionals, Warsaw offers Austrian and German clients an efficient, cost-effective, and seamless nearshore IT outsourcing experience, bridging any communication and collaboration gaps through shared time zones and high proficiency in English and German" - Dominik Renner

Moreover, to ensure seamless integration between our clients and our developers, we've strategically placed our project managers and product managers in Graz and Vienna. This strategic positioning allows us to bridge any potential communication gaps and provide our clients with an efficient, high-quality, and cost-effective service.

We at Essentio believe that IT outsourcing can be a game-changer for businesses when implemented correctly, and we strive to provide the best outsourcing services to our clients. Whether you're a serial investor needing a different team for each new project, a startup founder looking for an expert team quickly, or an established company facing a growth crisis, Essentio is here to provide tailored IT outsourcing solutions to suit your specific needs​.

In terms of cooperation models, we offer project outsourcing where we handle specific development tasks from start to finish, and outstaffing models, including dedicated team and team augmentation models. The dedicated team model is perfect for businesses needing a new department of IT specialists for a specific task. In contrast, the team augmentation model is ideal for businesses needing to hire individual specialists to support their core team​​.

At Essentio, we are flexible in terms of time, project size, and the number of specialists assigned to a task, always striving to balance the load according to the project goals. Through our comprehensive IT outsourcing services, we aim to help our clients maximize their potential and achieve their business goals.


In conclusion, IT outsourcing is a strategic tool that has transformed the way businesses operate, offering access to global talent, cost savings, flexibility, and scalability. However, it's crucial to approach it with a well-structured plan, understanding its potential risks and rewards. At Essentio, we leverage our strategically located resources and vast expertise to provide high-quality IT outsourcing services. We offer a range of cooperation models, tailored to meet the unique needs of each client, be it a small startup or a large corporation.

Through our dedicated and augmented teams, we ensure that our clients' projects are delivered on time, within budget, and to the highest standards. As we navigate through the dynamic landscape of IT, we remain committed to driving innovation, enhancing productivity, and contributing to our clients' success. We believe that the right outsourcing partner is not just a service provider, but a catalyst for growth and transformation. And at Essentio, we are proud to be that catalyst.

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