Published on June 5th, 2019
Outsourcing is typically thought of as something that only large corporations do, but this simply isn’t the case. Big and small companies use outsourcing for a huge variety of reasons, and for most, it is highly beneficial.
One of the main divisions of a company to be outsourced is Information Technology, or IT. Outsourced IT support can have a host of benefits or risks, depending on the situation and the company’s needs.
For simplicity’s sake, the following overview will provide a brief foray into the benefits of outsourcing your company’s IT department.
1. Save Money
Undoubtedly, this is an obvious one. It is significantly cheaper to outsource IT than it is to keep it in-house. This is for a few main reasons.
Having an IT department in-house is expensive, as not only each workers’ salary and benefits must be paid, but also the rent for space, the cost of the software, repairs, updates, and upgrades, and similar costs.
These add up monthly, quarterly, and annually. Outsourcing can be a lot cheaper in this regard because only the service is paid for, thus freeing up both excess building space as well as money.
In addition, if outsourced IT support is located in another country, the wages that need to be paid could be significantly cheaper as well.
2. Control Expenses
Companies that keep every single department in-house invariably cost more to operate than those that outsource IT or other departments.
This cost has to be made up somewhere and most often it is made up by increased prices for customers. While this is less than ideal, it is the only option for non-outsourced companies.
Thus, in most cases, outsourcing IT can provide the customer with a cheaper unit or service cost with no notable changes in quality to that service or unit.
3. Focus On Core Operations
Higher up company executives traditionally have to split their time between core operations and non-core operations. For example, development (core) and IT (non-core).
This means that valuable team members sometimes have to devote time to things that are company upkeep, rather than company development. This is less than ideal.
By outsourcing IT, more resources and brain power can be spent on the company’s core values and operations – thus advancing it further.
4. Better Resources
Traditionally speaking, companies could not afford to keep up with the cutting edge technology and resources of the industry giants.
By outsourcing IT, however, the firms that are outsourced to often have technology at that same level. Thus, the smaller groups now gain the technology that they previously didn’t have access to or could not afford.
This creates a more even playing field for two reasons. The first is that upper management can focus more time on core operations like previously mentioned. Secondly, they can do information technology services with the same level of high-end technology, which was not possible beforehand.
Obviously, there are several benefits to outsourcing IT. These include saving money, controlling expenses, focusing on core operations, and better resources.
All of these can advance companies further than before and give them an edge in competitive industries. In addition, the importance of IT cannot be overstated, as the world is advancing and digitizing at a rapid rate and technology is becoming an indispensable part of everyone’s day to day lives.
After assessing these benefits and doing some additional research, you can assess whether or not outsourcing your company’s information technology services department is the right choice for you. For most, it will be, however, there are definite exceptions to this, so be sure to check.