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The Top 5 Business Advantages of IT Outsourcing

March 30, 2018 | by Berton Warner

Outsourcing IT used to be a practice reserved for large-scale organizations that could afford the up-front costs, but today, outsourcing has become so widespread that prices have become tenable for businesses of any size, allowing for cost savings and the ability to refocus human resources toward what your company does best. If you’re new to outsourcing, these five benefits will form the cornerstone of the value you can expect to find:



The Top 5 Business Advantages of IT Outsourcing

   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 in-house engineer.


   2. Reduced Need for Recruitment

Aside from the costs of keeping an in-house team, you need to consider the costs of acquiring that talent in the first place. 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.


   3. Reliability

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.


In short, outsourced IT guarantees reliability and mitigates risk for your company.


 4. Expertise

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.

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 asses the effectiveness of other departments, or having to split the company's resources to now focus on non-core services. Outsourcing services, such IT, allows for both optimized service levels and cost savings.

Outsourcing Comes Down to Optimizing Your Resources


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.


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Categories: Business Process Management, Managed Services

Berton Warner

About Berton Warner

With 25 years of IT experience, Berton Warner brings a plethora of experience and knowledge to the table. After 12 years as an IT business owner, he understands the business and technical side of IT. He enjoys the constantly changing, growing and ever expanding IT world and looks forward to new challenges and opportunities.

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