IT is an integral part of every organization, and strategic use of IT can increase productivity, enhance customer service, and even provide a competitive advantage. When the IT department is not managed optimally, the work of all the other departments comes to a halt. An organization has a ton of aspects to direct and depending on their workflow, IT may not be the best of their talents.
Most organizations often struggle to find the right individuals, and supporting the firm’s technical needs requires significant resources. The best solution to overcome this problem is outsourcing IT support services. Having IT support that responds to your issues quickly can help you save the time and resources of your firm. Many organizations are choosing to outsource their IT operations to MSPs, this data from Capital Counselor reveals that the value of outsourced IT services will surpass $413.72 billion by the end of 2021.
Experienced technical support can secure your data and tackle the issue of cybersecurity as well. Entrepreneurs prefer to outsource their IT support when they can’t keep up with it. They opt to use their company resources on their product and services while receiving complete IT support by partnering with another top firm. In today’s post, we will discuss why outsource your IT support? And how can it be an advantage for your organization?
What Is Outsourcing?
Outsourcing is a regular business practice, where an organization seeks help by hiring a third party to perform specific tasks, handle technical operations or provide any additional service to the company.
The third-party is often known as a service provider. They enlist the help of their own employees and arrange workstations to perform the tasks assigned by the organization. The service providers can provide assistance via their own sites or by visiting the hiring organization’s facility.
Organizations today can outsource several tasks, and one of the regular services is IT (Information Technology) outsourcing. From programming to networking, the service provider is responsible for managing several IT-related tasks. Apart from outsourcing IT operations, companies often outsource other assignments like payroll, accounting, customer service, etc.
Outsourcing is sometimes referred to as contracting or business process outsourcing, and it is becoming a prevalent option for many enterprises and large-scale organizations.
Outsourcing doesn’t always have to include a small-scale company. When outsourcing, companies can enlist the help of large third-party providers like IBM to manage IT operations or FedEx to carry out the supply chain seamlessly. Outsourcing can also mean hiring independent contractors, temporary staff, and even freelancers.
To safely understand why outsource your IT? You must look at the stats. Companies have been partnering up with service providers for a long time now, and every year the rate of outsourcing is going higher. According to Statista, in 2019, the market size of IT outsourcing amounted to a whopping 66.52 billion US dollars.
Source: capitalcounselor
What IT Solutions Can You Outsource?
Before getting to the primary question of why outsource your IT? You should be aware of what IT operations you can outsource. Outsourcing IT can trim down your workload, and by getting assistance from experts, you let them do the heavy lifting and focus on what your organization does best. This is the reason behind the growing outsourcing market. Some of the most common outsourced IT operations are :
Computing Software
Small entrepreneurs face the problem with regular upgrades of the software. Upgrading software on all different models is time-consuming, and it can be the absolute worst if the hardware fails to support the new upgrades. Now, organizations can outsource their IT services, and the service provider will take care of all the updates. The staff member simply logs in and benefits from the improved software.
Network Security
Security is one of the most significant aspects of any organization, and without access to the right resources, organizations can struggle to provide that iron-clad security expected by their clients. Outsourcing your networking services is a smart option, and it is a common practice among organizations. A service provider can provide safety against cyber attacks. Offsite service providers specialize in this area, and they have up-to-date security measures that allow them to stay ahead of attacks.
File and System Backup
Cloud storage has become the most chosen option for storing data and sensitive files. The organization however doesn’t have enough time to create a backup of every single file on the cloud. This task is often assigned to a service provider. They back up all the data on the company’s cloud, allowing them easy access to all files for a prolonged period.
Computing Infrastructure
Before the introduction of outsourcing small entrepreneurs had to build the latest workstations proportionate to their growth. When the business grew, they had to upgrade this technology and install bigger and better systems, full of the latest technology and expensive hardware, but that is not essential anymore. With the introduction of outsourcing IT services, these tasks can be assigned to a service provider who invests in the latest technology regularly. This gives the organization the best solution without massive investment.
Troubleshooting Support
The service provider can help you manage your systems remotely. When any issues arise, you will have access to technical support who can walk you through the whole process of troubleshooting. Whether you have confusion over an update or a fault in your system, your service provider will be available to help you solve every computing issue to the best of their capabilities.
Network Maintenance and Implementation
Organizations using a private network have to consider upgrades and updates of the system, but the process can be time-consuming and affect the operations of the organization. This is why many companies outsource their network maintenance and implementation work to other more experienced service providers. The service providers work on this task regularly and implement the upgraded programs in-house in considerably less time than an in-house team.
Requirements for Successful Outsourcing
To maximize your profits after outsourcing IT operations, you must comply with some simple tips. This will help you work in sync with your service providers and optimize the workflow between your in-house team and the extended team.
Executive Support
The top management of the company is responsible for outsourcing initiatives. Senior management must lay down the goals and objectives associated with the outsourcing initiative. The process must be communicated within the organization and with the contractors as well. The leadership should stay engaged in the process and provide feedback as the work continues.
Clear and Open Communication
To ensure your program is successful, you must communicate in a clear, open, and effective manner. The organization must explain any changes clearly to their contractor, and the stakeholder must also assume a role in this process. The channels of communication must be quick and open at all times. This will reduce the chances of mistakes and losses.
Relationship Management
Just as the engagement of senior management, the role of managers is also essential. The managers are the bridge between two organizations, and they are expected to maintain a good relationship with the contractors including, boosting morale, addressing issues, and checking work. The senior management must meet at regular intervals to discuss the outsourcing relationship and take corrective measures when needed.
Top 9 Reasons For Outsourcing
An organization can experience many benefits of outsourcing IT services. Now we will look at 9 reasons that drive organizations to outsource their IT services.
Organizations Can Enjoy Expanded Resources
Large enterprises often have all the resources needed to maintain the services themselves, but the small and medium enterprises may not. Outsourcing can be beneficial for these organizations. It can give them access to cutting-edge technology and boost their production levels. This addition allows them to reach out to more clients and grow their business in the market.
Lessen IT Costs of The Company
The cost of the IT department is not just limited to the staff, but you will also need to install IT infrastructures like networks, servers, storage, security, and a bunch of other components which don’t come cheap. Outsourcing IT operations will transform your fixed IT cost into a recurring variable cost, and it will be easier to manage.
Guarantee Compliance and Security
In the internet age, no organization can be too safe. The government has laid security standards that organizations must comply with, and this is why more and more companies are moving towards outsourcing. Capital Counselor also states that 83% of IT leaders plan to outsource their security to an MSP in 2021. Regular security checks and upgrades must be made to protect the data. Qualified managed service providers can assist organizations in the proper management of the data and reduce the risk of sensitive information falling into the wrong hands. This takes the additional pressure of security off the organization, letting them focus on their business.
Provide Uninterrupted Flow of Service to Companies
As technology continues to grow, managing the pace has become challenging for organizations. Companies now need innovative hardware and software solutions to comply with the needs of this dynamic market. This has given rise to the need for continuous functionality for components like extranet, internet, and intranet. Professional service providers can provide complete control over such technicalities and allow the organization to work without interruption.
Reduce Labor Costs
To maintain an in-house IT department, you will need trained professionals with years of experience in the market, and to be fair, paying their salaries can be expensive. Though hiring temporary IT support may seem tempting, it can end in disappointment and result in more problems than solutions. Employing a service provider can help you save on cost and give you access to experienced staff.
Increase competitiveness
Companies managing their own IT departments have to dedicate resources and time to it. This can affect their ability to compete with other businesses in the market and increase their cost of operations as well. Outsourcing will reduce the expense associated with IT management and save their time as well. This way, they can focus on their products and services and stay competitive.
Dampen Anxiety
Employees’ anxiety will be reduced when vital functions like data recovery and disaster management are effectively tackled. Every data loss or computer crash has an emotional impact on the workers, which can hamper their productivity and performance. When this task is handled by a skilled IT professional, the pressure on the staff members will be released, allowing them to stay productive.
Increase competitiveness
Companies managing their own IT departments have to dedicate resources and time to it. This can affect their ability to compete with other businesses in the market and increase their cost of operations as well. Outsourcing will reduce the expense associated with IT management and save their time as well. This way, they can focus on their products and services and stay competitive.
Let Organizations Remain Focused on Core Business
Managers have enough on their plates without the added burden of managing the IT department. This division of attention can distract them from their actual work and the core business of the organization is often compromised. By outsourcing IT services, the managers and employees can stay focused on the tasks they are skilled at.
Decrease Risks Of Companies
No organization can outrun risks, every investment carries a level of risk, but the good news is this risk can be decreased. By partnering with contractors, the companies delegate some of the tasks to them, reducing their risk in the process. Hiring specialized contractors who have the best knowledge of the industry reduces the risk of security and decreases the number of fines from the government due to inadequate security standards.
All the benefits associated with outsourcing can be the answer to the most asked question: why outsource your IT? Partnering with managed service providers can bring your cost down and the workload of employees. Years of experience and a variety of skills are some of the features that you can use to grow your business. Choosing the right service provider is essential. The right service provider will understand your business model, identify the weak areas, and fix them with expert help.
