IT is essential to the success of any business, providing services such as security, support, expertise and strategy. Unfortunately, many small-medium businesses tend to overlook it due to the associated high costs of developing and running an IT department.
However, the growing trend of IT outsourcing can bridge the gap. In fact, IT outsourcing spend increased 22% over 2019’s numbers to reach $519 billion in 2023. Recent studies indicate that outsourcing of IT functions can make up over half of the total IT expenditures, constituting 10.2% of average IT budgets.
Outsourcing IT services can be hugely beneficial for companies as it helps them achieve operational efficiency without requiring them to maintain an internal IT team.
Below are 5 reasons why outsourcing IT is advantageous for businesses:
- REDUCED SPENDING WITH IT OUTSOURCING
Many companies outsource IT services to reduce spending – with some savings estimated to be as high as 40%. Even small changes, such as outsourcing email services, can result in considerable monetary savings according to a study by Gartner.
utilizing AI helps to reduce both capital and operational expenses. Investing in local hardware and dedicating resources towards building a data center is no longer necessary. Outsourcing IT functions is an efficient & cost-effective way to manage IT tasks. Professional services provider offer comprehensive solutions from application development, hardware installations and end user support which reduces payroll expenses related to hiring employees for these roles. Additionally, it also lowers the costs of training and employee benefits.
Outsourcing is a cost-effective way to manage your business as contracts provide fixed charges, allowing you to predict costs and plan ahead. Additionally, vendors often offer discounted rates on network access and support since they buy in bulk and can share their savings.
- INCREASED FOCUS ON CORE BUSINESS
IT is typically seen as a support service rather than a primary focus for most businesses. Building and maintaining your own data center may not contribute to any sort of competitive advantage. It can be difficult to hire and keep an IT team with advanced knowledge due to the specific nature of your business, making it hard to develop software that could give you an advantage. Outsourcing IT functions can be a great way to free up your management’s resources and enable them to focus on core competencies and business development, rather than dealing with technology problems. Outsourced IT services come with 24/7 customer support and service level agreements that surpass what an internal operations team could provide. This way, businesses can get more done with fewer operational hassles.
- ACCESS TO EXPERTS AND THE LATEST TECHNOLOGY
The vendor takes great pride in their IT capabilities and makes sure their employees are sufficiently qualified & experienced in the related technologies. The IT services vendor is staffed by experts in a variety of IT technologies and can provide valuable guidance when making technology decisions. Plus, they grant you access to the latest tech and assistance from experienced professionals for successful implementation. The IT provider is responsible for patching and upgrading all systems at regular intervals.
- REDUCED RISK AND INCREASED FLEXIBILITY
IT services providers with extensive experience can help ensure you make the right decisions when investing in technology. Making the wrong choices can be costly, so it is important to have access to the right advice and support. Your IT provider has a range of tools & services to help you seamlessly switch to a new technology platform if your existing strategy is no longer working.
Outsourcing IT services provides an invaluable protection against loss of data. Cybercriminals create millions of malware programs every year, and companies can suffer massive losses in case of a data breach.IT outsourcing providers make sure data centers have proper security protocols in place, like firewalls &SIEM software, to guard against threats. Organizations in the financial and healthcare industries often outsource to certified vendors for additional data security. This can minimize the risks associated with storing sensitive data.
Outsourcing IT services eliminates disruptions from downtime as vendors create resilient infrastructures using redundant devices. Additionally, backups and recovery strategies can help secure data in the event of any hardware failures.
Partnering with an IT services provider gives businesses the flexibility to adjust their service needs quickly and without hassle. Temporary projects can easily be managed, and you can stop paying for the IT services once your project is completed. IT services providers can effectively provide additional servers and storage when a company is growing rapidly and needs additional capacity.
- INCREASED EMPLOYEE MORALE
Poorly implemented outsourcing can lead to unhappy employees who worry about the security of their own jobs, but handled properly, outsourcing can actually increase your employees’ morale. Outsourcing IT tasks frees up your team to focus on the core job roles and competencies. Moreover, these services also provide more reliable systems that help them increase productivity. Allowing workers to focus on their job roles that are most relevant to their expertise increases job satisfaction, lessens burnout and reduces turnover rates. By doing this, workplace productivity increases significantly.
Despite its rewards, IT outsourcing comes with risks that companies need to be mindful of. To ensure that vendors can adequately provide the services agreed upon, it is important to conduct a rigorous assessment of their qualifications. It is essential to keep a close eye on the vendor to ensure services comply with the predetermined agreement and that all work is documented correctly. Additionally, you must always be aware of your IT requirements and inform the vendor promptly if any changes need to be made.
How Chapter247 can help you here
If you are looking for an outsourcing agency, Chapter247 can be your answer. With our experienced team and hands on understanding across various industries and technologies, we are your answer to every project concern. Get in touch with us to know more.
