Outsourcing IT Services. Why you need to do it for your business.
Outsourcing IT refers to the practice in which businesses or companies entrust their “Information Technology” procedures to third party entities instead of assigning tasks to existing or In-House employees. Outsourcing trends continue, and the latest wave of outsourcing impacts the field of information technology. As your business grows, outsourcing can be a way for the promotion of new skill sets. Outsourcing has stepped up to meet the growing needs of technology industries.
Importance of outsourcing
Over the past three decades, contracting out IT services has become an important part of management on a global scale. Many large and small enterprises make extensive use of outsourcing technology services, as this brings countless advantages. The most important factor is that outsourcing services allow one to get the work done cost-effectively.
59% of the companies outsource their IT services to reduce maintenance and installation costs to focus on business objectives and gain access to specialized and talented resources.
- Outsourcing those services to your “Contracted Managed Service Provider” allows you to develop an internal task force and utilize them more efficiently.
- Shows an increase in your business values by delivering high-end quality services.
- Your managed service provider can take over, troubleshoot, and continue work even if your In-house team is not available.
- Companies should consider outsourcing their IT services to procure more data security and reduce data management costs as it can be an intelligent decision to make.
- Contracting out allows businesses to share associated risks with outsourcing partners to reduce the work burden and maintain financial flexibility.
- During holiday months and off-season, the contracted IT support provides an additional benefit of running your business at full throttle.
- Helps companies on a global scale to increase revenue and to gain competitive advantages.
- Contracted IT support helps the business surpass competitors who have not yet realized the advantage of outsourcing.
Why companies should choose to outsource the work.
To reduce the maintenance cost and have someone available at all times to troubleshoot the problems, these are the main reasons to outsource technology services.
In-House VS Outsourced Services Comparison
|In order to troubleshoot daily issues, In-House It management relies on limited staff
||A fully-staffed help desk is available to troubleshoot problems 24/7
|In-House IT staff also may need the assistance in order to troubleshoot.
||A well organized and talented staff is available for troubleshooting all the time and outsourcing also offers consultation to expand the network growth.
|All hardware expenses is responsibility of company and it may end up paying an extra cost of installation.
||The service provider companies manage the unexpected server problems and hardware expenses.
|In-House IT staff can be overworked in order to do necessary updates
||All the necessary updates are made by service providers without extra cost.
|In-House IT team can be a luxurious expense as you might need to invest a lot of money in the training and recruiting process.
||In outsourced IT work, you don’t need to take on the headache of the recruitment process.
||A business can focus their time and energy on what matters most for their business.
Risk and rewards of outsourcing.
In the right context, outsourcing IT support can be a fantastic way for businesses to improve planning and efficiencies, but that doesn’t mean that the practice is not without its own disadvantages. The benefits of outsourcing the IT services are very fruitful, from cost-saving to efficiency gains. On the other hand, loss of control over the “Outsourced service provider” is often a potential business risk. Businesses should consider the pros and cons of “outsourcing” before deciding to contract out business activities. Before outsourcing, it may be worth looking at “Outsourcing Considerations.”
Rewards of Outsourcing IT support:
- By contracting out the specific tasks, businesses are often able to greatly improve presentations by providing the “Bench of expert people” in a specific field.
- Both operating expenses and capital can be reduced.
- The IT service providers have a solid base of expertise that assists businesses to make the right decisions.
- Can overcome the shortage of talent.
- If companies are working with limited staff members, then companies can get the work completed quicker than In-House staff.
- Gives businesses a chance to take new risks experiments with different techniques of exposure.
- Can help businesses to gain knowledge and skills along with the organizations.
- Outsourcing IT support functions to reputable service providers ensures that businesses are using futuristic technologies to stay competitive.
- Provides you the seasonal demands to bring in extra staff when you need it and release them when they’re no longer required.
Risks of Outsourcing IT support:
- Contracting out gives authority to service providers to take over business functions.
- Confidentiality, Integrity, and Security maybe at the risk without proper legal agreements in place.
- Management difficulties can be seen.
- Companies need to be careful about the terms used in the negotiation process as it’s very important to understand that what is offered and at what cost.
- You cannot assume that your “Outsourcing Service provider” is driven by the same standards and goals that drive your organization.
Contact us today and let’s discuss how we can help you with your outsourcing needs.