Outsourcing IT Services – Pros and Cons

IT outsourcing is used by businesses worldwise handing over the day-to-day responsibility of the IT technology to a trusted Managed Service Provider (MSP). The MSP delivers on services, such as network, application, infrastructure and security, etc.

By outsourcing their IT, business owners can focus on cultivating their business while leaving the IT needs in the hands of an expert.

With that, the big question then is “Should you be outsourcing your company's IT?”

Let us share our thoughts on the following:

  • Pros and Cons of IT outsourcing
  • Where to start with the outsourcing of your IT
  • Should your IT be outsourced?

1 - The Bad side of Outsourcing IT

Irrespective of the number of positive reasons to outsource your IT, it does have its own set of drawbacks.

Typically, larger companies would not enjoy the full benefit of IT outsourcing in the same manner as medium to small would simply due to the business demands requiring an in-house IT tea, which in its own right has the need for permanent IT staff along with their own data centre.

As the business grows, so the level of due diligence required to hire or outsource technical support services increases. Additional disadvantages could be:

  • Data security – Protection if IP (intellectual property) and sensitive data if any of the MSP services are outsourced.
  • Business Process & Protocol – Time required by the MSP resources to familiarise themselves with the business policies and procedures.
  • Hidden costs – These could spiral out of control when using a long-term staff augmentation model, but the risk can be mitigated by way of using managed services underpinned by detailed SLAs tied to task outcomes.
  • Negative impact on morale – Should the decision to outsource ultimately result in any employee layoffs or internal transfers, this could be seen by the affected staff as a negative causing a drop in morale.

With that out the way, we can now capture the positives side There is at the end always a silver lining to be considered as well…

2 - The Good side of Outsourcing IT

All companies value their IT staff and the skillset they bring to the business, but keeping in-house staff up-to-date can become extremely difficult considering the for everchanging IT stacks of the modern world and the complexities with which they come. For this reason, outsourcing of IT support comes in on its own.

When business owners outsource their information technology services to experienced IT professionals, they can focus on their core objectives and capitalize on the full value of their IT expenditure.

Key Advantages of IT Outsourcing Include:

  1. Lower IT costs - Outsourcing is less costly than in-house IT development in small companies.
  2. Increased scalability - Allow for an expanded IT infrastructure in both technical and human resources.
  3. Access IT experts with rare skills - Take advantage of the expertise of industry-leading IT specialists.
  4. Improved Performance - Reduction of organizational complexity, administrative burden, and payroll costs.
  5. Embrace core competencies - Focus your team on the tasks that will help the business grow.

Prior to the Covid-19 pandemic, IT Outsourcing was a broadly accepted practice, but post the outbreak and with an almost forced review of IT strategies, which include transition to long-term remote operations, the market has seen an increase in adoption of IT outsourcing solutions.

The advantages of IT outsourcing have become more apparent within the market of which a few are:

  • Reduced capital expenditure
  • Predictable IT costs
  • Improved technical support and IT services
  • End-user support (on-site and remote support)
  • Access to new IT skills, knowledge, and technologies
  • Faster implementation of new technologies
  • Reduced risk of violating compliance standards

To end off, address the question “Should you be outsourcing your company's IT?”

Business operations, customer service requirements, as well as other factors are unique to each business. But almost all organizations share one thing in common: the reliance on technology.

No matter the industry, IT will be at the heart of:

  • Ecommerce
  • Collaboration and communication
  • Customer service
  • Business intelligence
  • And more…..

Your business growth shouldn't be hindered by inadequate IT expertise and resources when it is providing such a wide range of functions. Because of this, IT outsourcing is preferred by most businesses despite its pitfalls.

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