Benefits of IT outsourcing service in the retail industry

November 10, 2023

Tags: IT Staff Augmentation

it outsourcing


The retail industry has undergone a significant transformation thanks to the widespread adoption of IT outsourcing services. By outsourcing key IT functions such as infrastructure management, technical support and software development, retail companies can focus on their core competencies such as customer service and business strategy.


This approach has allowed companies greater process agility, as companies can quickly adapt to changing market demands without the burden of managing all IT operations internally. Additionally, simplifying routine tasks through IT outsourcing frees up internal resources for strategic activities, thus promoting innovation and growth.


it outsourcing


Context of IT outsourcing in the retail industry

Concrete examples of how retail companies have successfully applied IT outsourcing include outsourcing the management of point-of-sale (POS) systems, managing inventory databases, and implementing e-commerce solutions.


These practices have not only improved operational efficiency, but have also allowed retailers to focus on improving the customer experience and staying competitive in a dynamic business environment. Specific references include case studies from companies such as Walmart, which has outsourced part of its IT operations to optimize its logistics processes and improve the online shopping experience.


“The market for outsourcing and adoption of IT outsourcing services has traditionally been pegged at around 7% for the retail industry”, Harvey Gluckman, senior partner at research and advisory firm ISG, told Retail Dive.


“Most retailers who turn to outsourcing are looking to meet one or more of the following needs: reduce IT costs, add capacity, or obtain new capabilities”, they added in the article.


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How the retail industry can benefit from IT outsourcing services

The retail industry can take advantage of a variety of IT outsourcing services to improve operational efficiency and focus on its core business. Some ways businesses can use these services include:


IT Infrastructure Management

Outsourcing the management of servers, networks, and storage systems can help retail businesses reduce costs, improve security, and ensure the constant availability of their technology systems.


Software development

Hiring external services for the development and maintenance of e-commerce applications and platforms allows retail businesses to benefit from the latest technologies without incurring the costs associated with in-house training and hiring specialized developers.


Technical support

Outsourcing technical support for point-of-sale (POS) systems, e-commerce platforms, and other critical systems allows retailers to ensure continuous service and quick issue resolution, without the need to maintain a large in-house team.


Data Processing and Analysis

Outsourcing the management and analysis of large data sets related to inventory, customer behavior and purchasing trends can provide valuable information for strategic decision making and supply chain improvement.


Informatic security

Given the growing threat of cyberattacks, outsourcing cybersecurity can be crucial. Cyber security companies can implement and manage security measures to protect sensitive customer information and ensure the integrity of transactions.


Cloud Services

Adopting cloud services through third-party providers can allow retail companies to scale their operations more efficiently, access computing resources as needed, and ensure the constant availability of their applications.


Examples of retail companies that have successfully applied IT outsourcing include Amazon, which outsources parts of its web services infrastructure, and Zara, which has used external services to develop and maintain its e-commerce platform. These approaches allow retail companies to focus on innovation, improve customer experience, and stay agile in a competitive market.


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Why should retail companies hire IT outsourcing services?

Whether you need support with a specific IT project or a team to completely handle some technology responsibility in your business, this LinkedIn article gives us an idea of the scenarios in which the service of an IT outsourcing team IT can be helpful:


  • 24/7 emergency IT support
  • Software solution support
  • Antivirus updates and reports
  • Asset Management
  • Proactive server monitoring and management
  • Proactive endpoint monitoring and management
  • Trend reports and IT performance reviews
  • Cloud hosting, migration and support
  • Disaster recovery solutions, planning and support
  • Real-time support dashboard
  • Proactive network monitoring and management
  • Proactive email monitoring and management
  • Patch management
  • Hardware support and warranty management
  • Remote configuration and onboarding of new users
  • 24x7 reactive remote support for priority incidents
  • IT security management
  • Acquisition and management of software licenses
  • Training in processes and systems


Do you need an IT outsourcing company to support you with your projects in the retail industry? At Rootstack, we have +13 years of experience supporting businesses in their digital transformation. Contact us!