Over 7% of small businesses outsource one or more of their business processes each year, and many enjoy the benefits of outsourcing IT services. You can upgrade your technology ecosystem with:
- Lower costs without compromising on quality
- Access to top talent without hiring in-house
- Opportunities to fill skill gaps
Curious to know the pros of outsourcing IT tasks and why it matters to today’s top companies? Read through our guide below.
What Is IT Outsourcing?
Businesses hire external vendors or service providers to offload many tasks that they can’t or no longer want to handle in-house. Companies know the benefits of outsourcing IT and will outsource numerous “types” of services:
- Infrastructure and network management
- Software development
- Cloud services
- Managed IT services
- Help desk and support
Anything under the IT umbrella can be outsourced to a third party that often works remotely, but there may be on-site options available.
Why IT Outsourcing Matters Today
Technology demands are rising. One of the main advantages of outsourcing IT support and services is that you gain access to a team of specialists rather than hiring one person in-house.
For example, if you need to hire a junior systems administrator, you’ll pay $50,000 – $75,000 per year, plus the cost of:
- Office space
- Hiring
- Benefits
But this is just one person in a team that continues to grow. You’ll also need someone who can assist with your network design, maintenance and deployment, cybersecurity and other areas that may impact your IT ecosystem.
If you cannot justify hiring several in-house employees, outsourcing offers a cost-effective way to keep your company growing with access to specialized expertise as your needs change.
The Biggest Benefits of Outsourcing IT
In-house? Outsourcing? Which is the best option for you?
Review the benefits of outsourcing IT services before making a decision.
Lower Costs Without Cutting Quality
One of the main benefits of outsourcing IT is that you can hire a team on a flat fee every month without compromising on quality. Your outsourced team doesn’t require:
- Training
- Benefits
- Insurance
- Full-time salaries
Access to Top Talent Around the World
Perhaps the most important of all benefits of outsourcing IT support for small businesses is that you open up access to the world’s top talent. Many of the companies offering these services have specialists with:
- Degrees
- Certifications
- Decades of experience
Scalability and Flexibility
Scale operations up and down as your needs evolve. Month-to-month contracts offer the flexibility that an in-house team cannot.
Focus on Core Business Priorities
Tech teams are stretched thin. On top of the lower costs and benefits of outsourcing your IT department, you also benefit from:
- Freeing up time for your in-house team.
- Opportunities to focus on business-critical priorities.
Improved Cybersecurity & Compliance
Cyber threats continue to rise annually. Last year, 92% of specialists in the healthcare industry alone faced cyberattacks. Working with a cyber security service reduces the risk of an attack while improving your organization’s compliance.
24/7 IT Support and Monitoring
Threats and network problems can happen at any time. One of the advantages of outsourcing IT support is access to a team of professionals 24/7. If your network goes offline in the middle of the night or a user is locked out of their accounts, someone is available to fix issues for you night and day.
For today’s businesses, a minute of downtime leads to lost sales.
Your outsourced professional reduces these risks with 24/7 monitoring of your network and critical infrastructure.
Financial Advantages of IT Outsourcing
Cost savings are one of the benefits that companies focus on most when hiring an external team for their tech needs. You know how outsourced IT can improve your business from an operational standpoint.
But there are also financial benefits to consider:
Predictable monthly costs
Service agreements outline monthly costs that remain consistent.
Eliminates hiring and training
Every new employee comes with a massive cost involved. You need to hire the employee, spending many hours in interviews. Once hired, they will need training, too. Outsourcing offloads all of these costs to someone else.
Flexible pricing models
You already know the pros of outsourcing IT, but also consider how the service is priced. Most offer flexible options that scale with your needs.
Operational Benefits of IT Outsourcing
Of course, companies focus on efficiency and growth when making critical business decisions. Operational advantages of IT outsourcing are undeniable:
- Access to specialists in multiple fields of IT.
- Scalability to grow or remove services over time.
- Faster problem resolution.
- Stable uptime.
- Greater security and compliance.
If you need help with new server deployment or cloud infrastructure planning, outsourcing gives you access to professionals who make sure operations run smoothly.
Outsourcing does have many benefits, but it also comes with risks.
Risks and How to Manage Them
Any time you outsource, you face risks. While the benefits of outsourcing IT services far outweigh these concerns, they’re worth noting:
- Data is exposed to teams.
- Quality issues can arise if SLAs are vague.
- Loss of control if the provider leaves.
- Hidden costs.
- Communication barriers.
How can you avoid these risks? Spend time vetting your service provider and strengthening your contracts.
How to Choose the Right IT Outsourcing Partner
Your business can experience the benefits of outsourcing IT. But you need to do your due diligence. Select a service that you trust and can grow with. How?
- Define your goals and the scope of the work you need performed.
- Verify the technical expertise of the provider by reviewing skills, certifications and client references.
- Read through testimonials and reviews.
- Evaluate companies and security.
- Consider cultural fit and communication.
- Read through the Service Level Agreements (SLAs).
Work with a company that offers an annual contract to test out their services without a long-term commitment.
If the provider is not a good strategic fit, move to another one that might be.
Why IT Outsourcing Is Worth Considering
Your technology needs keep growing. If your team remains small, you’re putting a dozen specialties on team members who are not specialists.
Some of the advantages of IT outsourcing are that it:
- Reduces hiring and infrastructure expenses
- Provides access to niche technology experts
- Frees up core team members to focus on critical tasks
- Speeds up projects
- Reduces time-to-market
- Strengthens security and compliance
If you can’t justify hiring an in-house team and are still growing, outsourcing is your opportunity to remain cutting-edge without the high IT costs.
FAQs
What Are The Benefits and Risks Of Outsourcing IT Services?
Companies enjoy cost savings, access to expertise, faster time-to-market and innovation with outsourced services. You’ll also benefit from the ability to scale their tech needs up and down. Some of the inherent risks you face are:
- Dependency on outside vendors
- Data and privacy concerns
- Loss of control
- Reliability risks
- Hidden costs
Can I Outsource Certain Areas of IT (Cybersecurity, Network Management, etc)?
Yes, that’s the beauty of outsourcing. Vendors offer multiple specialties and areas that you can outsource. You can outsource your cybersecurity while keeping your support in-house, or mix and match services to free up your team to focus on vital core tasks.
Do I Need to Sign a Long-term Contract When Outsourcing My IT?
Every IT support services provider is different. Working with a reputable service means that you’ll enjoy transparent pricing and clearly defined service agreements. Our annual contracts are designed to provide long-term value and predictability while keeping your business needs in focus.