Information Technology (IT) is a major support function for any business. All too often business will overlook a strong secure IT component of their organization, mainly because of the cost to develop and maintain an IT department.
IT outsourcing can bridge the gap, securing your infrastructure for a fraction of the cost of hiring a full-fledged IT staff. Some studies show as much as 60 percent of the IT function being outsourced, with spending on outsourcing accounting for 10.2 percent of average IT budgets.
Firms that invest in outsourced IT services see substantial advantages that help them function more efficiently and successfully without having to invest in a full-fledged IT department. These are five reasons why IT outsourcing works for businesses:
- Employment Costs Drop Significantly:
Reducing spending and boosting the bottom line is the main driver behind IT outsourcing. The savings are meaningful, with some estimates as high as 40 percent.
Both capital and operating expenses are reduced. Hardware purchases and expensive real estate dedicated to developing a data center are an unnecessary burden. Gone are the days of hiring employees to perform IT functions; all the functions of an internal IT team, from application development to hardware installations to end user support can be outsourced. Employment benefits are gone, as well as managing of employees.
Costs are predictable with outsourced IT, with fixed monthly contract charges. Outsourcing vendors can often charge less for network access and support than a business would pay the provider directly, as they purchase in bulk and can pass on savings.
- Focus on Your Business
Firms use IT as a support function, not a core capability. Constructing and supporting your own data center will not, more than likely, give firms a competitive advantage. If your business isn’t technology, it’s difficult to recruit, train and retain an internal IT team with top-flight skills, so your team may not have the skills to create software and manage infrastructure which could give you an edge. Outsourcing IT functions lets your management focus on making money, rather than struggling with technology issues. In addition, outsourced IT services offer 24/7 support and guaranteed service level agreements that go beyond what your internal operations team could provide, letting you get more work done with fewer operational issues.
- Access to Experts and the Latest Technology
Because IT is the provider’s core competency, they make sure their staff are trained and certified in all the technologies they support. The IT services vendor has a team of experts in multiple IT technologies; you can draw on the vendor’s team for advice that helps you make the right technology decisions. You get access to the latest technology and support from a team that is expert in deploying it successfully. The IT provider will make sure systems are patched and upgraded on an appropriate schedule.
- Reduced Risk and Increased Flexibility
Technology is expensive, and making the wrong decisions are very pricey. An IT services provider has a rock-hard center of expertise that assists with making the smart technical decisions. If you decide to change your technology strategy, your IT provider will have tools and services to help you transition to your new platform.
Outsourced IT services reduce the risk of data loss. More than 300 million pieces of malware are created each year, and companies face significant losses if a data breach occurs. IT outsourcing providers ensure that data centers have appropriate defenses, such as firewalls and security information and event monitoring software. Outsourcing vendors often maintain certification in the security standards needed to protect payment data or healthcare information, reducing the risks for businesses in those industries.
Relying on outsourced IT services also reduces the risk of interruption from downtime. Vendors build resilient facilities with redundant devices, minimizing the risk of downtime. Stout backup and recovery procedures reduce the risk of losing data if there is a device failure.
Working with an IT services provider also provides flexibility that enables companies to scale up or down quickly when their needs change. Provisional ventures can be accommodated, and the expenses stop when the project concludes. If a company is growing rapidly and capacity needs stack quickly, an outsourced IT provider can rapidly bring additional servers and storage online at a significant cost savings.
- Increased Employee Morale
Unburdening IT work lets your employees concentrate on the jobs they were hired to do, while the more perpetual and reliable systems, provided by an IT outsourcing vendor, allows staff to be more productive. Employees no longer must perform tasks they are not hired for and are more productive at their core tasks, they become more satisfied with their work and less likely to leave.
There are always gambles along with big wins, with IT outsourcing there are a few risks that firms should keep in mind when selecting a vendor. It’s pivotal to evaluate vendor qualifications carefully and make sure they have the resources and expertise needed to provide all contracted services. The vendor needs to be overseen to certify services are being provided as agreed upon; you also need to make sure the vendor documents all work. You need to continue to monitor your IT needs and inform the vendor in a timely way if you require changes.