Outsourcing IT has become one of the most efficient ways for businesses of any size to optimize productivity. Previously, IT outsourcing was reserved for large-scale businesses due to the large up-front costs. Nowadays, through outsourcing, firms are able to clearly define their core field of activities while transferring non-core activities to organizations enabled to perform them with higher degrees of efficiency.
If you are new to outsourcing or are considering implementing it in your business, these seven benefits will form the cornerstone of the value you can expect to find:
1. Reduced Personnel Costs
Don’t let the up-front costs of outsourcing fool you—in terms of what you’re getting, it’s often the most cost-effective option at your disposal. Think of all the personnel overhead cutting into your bottom line each month. There are payroll costs. Insurance. Taxes. Benefits.
Conversely, consider the costs of outsourcing your network engineers. You’re only paying your service provider’s fee—nothing else. This supports balance sheet predictability month over month, and essentially provides your organization with a team of technicians for less than the price of one
2. Reduced Need for Recruitment
Outsourcing IT eliminates any costs or wasted time that hiring new employees would bring. According to a study by the Society for Human Resource Management, the average cost of hiring one person is around $4,129, with around 42 days to fill a position. By simply outsourcing a team of IT specialists, businesses can reduce spending and take advantage of the average 42 days that it would’ve taken to fill a position. IT outsourcing means you can save on the costs required to maintain your recruitment pipeline, and these costs add up quick. Finding talent, interviewing, checking backgrounds, and training new staff members are costly endeavors. And once they’re on board, there’s no guarantee that they’ll perform.
Outsourcing IT personnel means you’re freed of the burden of sourcing new team members, leaving you available to focus on service performance rather than administration.
What happens when your most skilled network engineer falls ill? Or when they need the day off at the last minute? It’s impossible to predict every contingency, and your business is always at risk of under-performing when these unforeseen issues come up.
Now, consider the same scenarios when you have an outsourced IT team at your back. If a technician needs the day off, the service provider will have a ready team of engineers available to cover. This also applies to technical troubleshooting; should your own technicians encounter a new problem, outsourced teams can put their heads together and come up with solutions. The reliability of these IT teams shows through the trust gained in them by businesses worldwide.
There’s no substitute for the expertise offered by outsourced IT providers. Unlike your own employees who specialize in your particular industry, outsourced professionals are constantly shifting gears, working in different verticals, and handling new challenges posed by each new project. This broad experience forms the backbone of an outsourced IT provider’s expertise, and means that they’ll be capable of handling any challenge you throw their way.
5. Enterprise Tools
Part of the expertise offered by outsourced IT professionals comes from the technology. IT service providers often purchase software tools at a scale not available to most businesses and far beyond the capabilities that most businesses require. This means that, when working with outsourced partners, your business has access to enterprise-level tools at a fraction of the cost. You can achieve big boosts in efficiency without the heavy outlay of cash that normally comes with it.
6. Improved Efficiency
It may be obvious, but outsourcing can be beneficial for companies whose offices are filled with responsibilities that lie outside the sphere of IT - and having to deal with IT tasks actually inhibits tasks being completed efficiently and consistently.
Outsourcing allows your business to free up your employees’ time to concentrate on their main tasks, and not waste time on extremely complicated and expensive ones. Outsourcing can also be very beneficial for small businesses who want to spend their time on crucial tasks and allow a team of specialized IT providers to handle non-essential or costly ones.
A recent study found that more than one-third of small businesses (37%) currently outsource a business process. Gaining a team already skilled and trained in IT can help you achieve a more efficient and better quality service to your customers.
7. Competitive Advantage
With the expected IT spending in 2020 around 1.1 trillion U.S. dollars, it would be almost impossible for a business without IT providers to compete in the business world. The ability to focus on your company's main tasks and have another team of specialists on the rest gives you the ability to skyrocket in the competitive field.
Businesses are picking up on this trend.
The implementation of IT outsourcing could help your business remain competitive and successful in its industry for years to come.
Outsourcing Comes Down to Optimizing Your Resources
IT outsourcing primarily comes down to resource management. Organizations are typically specialized in their core offerings, and the institutional knowledge revolves around those offerings. Hiring, managing, and supervising labor outside of the company's core expertise means management either won't know how to properly assess the effectiveness of other departments, or having to split the company's resources to now focus on non-core services. Outsourcing services, such as IT, allows for optimized service levels, cost savings, and industry advantage.
Keep this in mind the next time you're deciding between hiring or outsourcing: would our resources be better spent on expanding our core capability? The answer will tell you if outsourcing is right for you.