We've seen that IT outsourcing is a popular option and has widespread applications, but you may still be asking, Why outsource your IT? IT outsourcing has earned a place of prominence in today's marketplace because of the valuable benefits it delivers to companies of all types and sizes. Some of the most meaningful advantages of outsourcing IT include cost savings, smooth operations, security and compliance and access to superior resources, as well as flexibility for evolving needs and freedom to focus on your core competencies.
Let's take a closer look at each of these benefits.
1. Cost Savings
When companies choose IT outsourcing, cost savings often top their list of reasons, and rightly so. There are two main ways outsourcing can save you money. One is by reducing labor costs. Computer and information technology professionals earned an annual median wage of $88,240 in 2019. Employing even a small team of in-house IT professionals is a significant investment. Outsourcing is often more cost-effective than employing your own IT personnel.
Outsourcing can also be more cost-effective when it comes to IT infrastructure. When you partner with an IT provider, you may be able to benefit from resources they offer that you wouldn't be able to afford on your own, and you won't have to pay for something you don't need. This is one of the key benefits of outsourcing IT infrastructure. IT providers can tailor solutions for your needs and budget. They may even offer leasing options for hardware and software to save you money.
2. Smooth Operations
Most organizations cannot afford the time and expense of disrupted operations, and yet IT issues can cause major disruptions. Outsourcing IT functions to experts can help companies avoid preventable issues. And, if unavoidable problems occur, a dedicated IT provider will swiftly respond to resolve the issue.
Especially if your IT processes directly influence the quality of your company's customer service, you need to ensure your IT processes are reliable. A data breach, a dysfunctional website or other issues can cause serious problems for organizations and can even bring operations to a halt until the issue is resolved. When you have access to experts 24/7, you can be confident that your company will be able to maintain smooth operations by optimizing your systems and efficiently addressing problems.
3. Security and Compliance
When it comes to protecting data, companies can never be too safe. Cybersecurity is not a luxury — it is an essential need for modern businesses. Especially if you handle personal data from clients or customers, allowing the safety and privacy of that data to be compromised can cause a breach of trust between customers and your company.
Some industries must also comply with specific data protection rules. For example, healthcare providers must assess their risks and maintain confidentiality according to the Health Insurance Portability and Accountability Act (HIPAA) Privacy Rule. Similarly, financial institutions must maintain certain safeguards in storing and handling customers' information according to the Safeguards Rule. Many companies lack the internal expertise or resources needed to meet these security requirements. Even companies that want to handle cybersecurity functions in-house can benefit from an outside provider's objective risk assessment.
4. Access to Superior Resources
Companies with in-house IT teams are typically limited in the resources they have access to. This is especially true of small businesses. In contrast, IT outsourcing companies make it their business to offer the very best in IT expertise, systems and solutions. Purchasing your own hardware and software can be expensive and prevent you from keeping up with the latest technology as you may be reluctant to upgrade. Taking advantage of resources provided by your IT partner allows you to benefit from the latest, cutting-edge IT solutions.
When it comes to personnel, if you handle IT in-house, you'll likely end up hiring generalists in the field who can help out with various functions but may not have the specialized knowledge needed for expertly executing specific IT functions. An IT outsourcing team, on the other hand, will have experts on staff who can provide comprehensive IT services with no compromises.
5. Flexibility for Evolving Needs
Companies evolve and so do their IT needs. Outsourcing IT is a more flexible solution that helps your company stay agile so your IT processes are always ready to evolve and scale with your business as needed. When you partner with a third-party provider, you don't have to make long-term investments into particular IT solutions or IT professionals. This allows you to update the services you receive whenever your needs change.
Having access to an IT service provider's resources also allows you to expand your IT functions quickly. If your business is growing, your IT provider likely already has the resources in place to handle your new needs. All you need to do is rework your contract with the provider to address your expanded IT requirements.
6. Freedom to Focus on Core Competencies
One of the most valuable benefits of outsourcing, in general, is that it allows companies to focus more intently on their core competencies and strategic goals. If you're developing a new product, for example, you should give that objective the full attention it deserves. However, you may not be able to if your organization's attention is split between your main business functions and auxiliary functions like IT.
By removing IT responsibilities from your staff, you enhance your productivity in the areas that matter most for your company. Meanwhile, you benefit from having your IT managed by experts operating within their core competency.