Outsourcing information technology (IT) through managed services has become one of the most efficient ways for businesses of any size to streamline core tasks. By removing the mundane (and time-consuming) responsibilities, you give your internal team more space to work on specialized projects that target both your employees and customers.
If you’re new to all this or you're still on the fence, check out the benefits of outsourcing.
Outsourcing may have become more affordable over the years, but that doesn’t mean you won’t balk at the initial price. However, you can't let that lump sum fool you either. When you factor in all the business functions you're getting, the cost savings is undeniable.
Think of all the labor costs overhead cutting into your bottom line every month. These are payroll costs. Insurance. Taxes. Benefits. On the other hand, consider the costs of outsourcing your network engineers. You’re only paying the service provider’s fee—nothing else. You don’t have to worry about unexpected HR complaints, unemployment claims, or a sudden employee departure.
When you choose outsourcing providers, your balance sheet is the same month after month. This can make it easier to budget for the rest of your departments. You’re essentially providing your business with a team of technicians for less than the price of one in-house engineer.
The same predictability is also true of your equipment. When your server breaks, you likely pay someone to come in and repair it. When you outsource your network management, the costs to repair and maintain everything is built into the package. When you move away from this traditional break-fix strategy, business owners can manage the budget without having to build in as much of a cushion for unexpected events.
Plus, your service partner has an incentive to maintain equipment. The more they prevent breakage and downtime, the less it eats into their own bottom line. It's a win-win IT strategy that increases your functionality without bumping up the price.
When you lower your personnel and maintenance costs before they even have a chance to manifest, you reinforce a proactive approach rather than a reactive approach.
Reduced Need for Recruitment
The cost of hiring an employee varies based on location, industry, and size of the organization, but recent studies put it anywhere between $4,000 to more than $7,600. It can also take well over a month before the position is even filled. Outsourcing contracts will eliminate the costs and wasted time that hiring new employees would bring.
By simply outsourcing a team of IT specialists, businesses reduce their spending without disruption to daily operations. It can improve the morale for your HR team (or employees who handle HR in their ‘spare’ time).
Finding talent, interviewing them, checking backgrounds, negotiating salary, training: all of these tasks eat up a lot of time. A new employee is on board, there’s no guarantee they’ll be worth all the hassle. When you choose outsourcing services, you give everyone more time to focus on service performance rather than administration.
More Time, Improved Efficiency
If you’re relying on a single engineer or CIO for your business’ network performance, consider just how nerve-racking it is when they unexpectedly need the day off. It’s impossible to plan for every contingency when you’re so dependent on one person. It means your business is always at risk of under-performing when these unforeseen complications pop 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 already has a ready team of engineers available to cover. This advantage also applies to technical troubleshooting. Should your own technicians encounter a new problem, outsourced teams put their heads together and come up with solutions.
This is particularly beneficial for companies whose expertise lies outside the sphere of IT. Having to deal with IT tasks actually inhibits the tasks from being completed efficiently and consistently. Outsourcing allows your business to free up your employees’ time rather than having to put out fires every day.
It might be why a recent study found that more than one-third of small businesses (37%) outsource at least one business process. When owners don't have to worry as much about day-to-day operations, they have more time to strategize long-term growth and expansion of the company.
Managed IT experts know how to handle technological issues with the latest updates before anything goes awry. Most IT outsourcing will also offer innovative solutions that remotely manage and monitor your network. This means real-time updates for anything from patches to printer meter readings.
Your company will no longer have to rally and waste precious resources when there are complications with the system. Instead, they enjoy a completely proactive system that defends against breaches and prevents downtime before you even know about it.
There’s no substitute for the expertise offered by outsourced technical support. These 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 they’ll be capable of handling any new challenge you throw their way.
It may seem like in-house IT staff have the advantage because they know the industry. But the reality is that a managed IT partner has a large team of IT experts with specialized skills. Security management is different from network management, and leaving everything to just one or two people likely means there are serious gaps in your systems and programs.
Your in-house team doesn’t have to be stretched so thin when they partner with managed IT services. Doing so will increase their bandwidth and help you scale your tech alongside the growth of the company.
Better Technology, Competitive Advantage
Today’s enterprise tools can be great for small businesses, but they’re also usually built for larger companies in mind. Many companies are only using a tiny portion of what the technology was created to do.
When working with outsourced partners, your business has access to enterprise-level tools at a fraction of the cost. You can achieve big gains in efficiency without the heavy spending that normally comes with it. Considering the rate at which technology evolves (and how costly it is to upgrade your systems), this is another cost advantage to outsourcing your processes.
And even if you aren’t keeping up with all the latest technology, you can rest assured that your IT partner is. Your team can worry less about new technology so they can concentrate on their own specialties. You can ask your IT managed service experts for recommendations, or they’ll come to you with suggestions on the best ways to innovate and automate your office. Choosing the best technology for an individual enterprise can be a daunting challenge, but managed providers are able to make these decisions based on everything from size to capabilities.
Technology these days is quickly pushing past the $1 trillion mark in the US. It’s clear that competing in today’s business world means having the right partner by your side. Managed IT services providers help your team focus on core tasks and give you another team of specialists at the ready. It puts you in a prime position to skyrocket in the competitive field.
Managed IT providers schedule their team’s time so they’re available whenever you need them. So even if your employees are in different time zones, you always have an IT department on hand.
When you outsource your IT, someone is always going to answer your call if there's a problem. Those network outages or service disruptions won't be quite so devastating when you have people you can count on. Waiting for an answer from offline support will become a thing of the past.
Plus, when you include data center backup and recovery services from your managed IT partner, you have the tools to handle even serious events. From natural disasters to successful hackers, you can get back up and running faster than you might think. Your managed IT partner can provide redundant systems to keep your network functioning 24/7/365.
In the past years, 41% of businesses were hit with phishing attacks targeting employee tax records — and that was just in Q1 alone. In this day and age, the fallout from these breaches isn’t an urban legend: it’s happening in your backyard.
Taking all necessary precautions to improve your IT security is critical to the long-term success of your employees, customers, and overall business. The continuous, proactive monitoring of your network from a managed provider keeps attempted hacks at bay. You don't have to worry about applying and testing security patches or installing/updating the latest virus and malware protection. You can leave all that to an outsourcing company.
Flexibility and Scalability
We mentioned scalability above, but it’s worth highlighting with our last advantage. When you grow with managed service providers, you can upgrade your IT infrastructure with a single phone call. Need more storage? Add some quickly. Want to adjust your backup frequency? No need to involve your IT staff because someone else can take care of it for you. Want to check out these cloud services you keep hearing about? Give your outsourced IT operations a call.
Your underlying IT infrastructure is also easily expandable. So if you become more interested in automation, advanced software development, or better telecommunications somewhere down the line, it will be easier to make it happen. Outsourcing is not a short-term fix, it’s a forward-thinking strategy that paves the way to success.
Standard IT services aren’t a competitive advantage anymore — everyone has a network and a backup protocol these days. The IT skills needed to implement and manage these systems are increasingly becoming a serious commodity, and this is true no matter what industry you’re in.
Your business is better served by outsourcing non-core tasks and focusing internal IT resources on projects that will differentiate you from your competition. Whether that’s a better website, improved customer service automation, or faster invoicing and internal workflows, your team will have more energy to devote to both your employees and clients.
Keep this in mind the next time you're deciding between hiring or outsourcing. Ask yourself ‘Would our resources be better spent on expanding our core capability?’ The answer will tell you if outsourcing is right for you.