Modern businesses rely on technology for many aspects of their operations. Data storage, electronic communications, and transaction processing are just a few examples of the diverse array of functions tech plays. Maintaining the systems necessary to keep those operational typically falls to IT staff. However, more businesses are looking at outsourcing these roles. Therefore, it’s a good idea to look at the benefits outsourcing provides to help determine if it’s a good move for your company.
Many businesses depend on specialized talent to stay focused on goals and keep things running smoothly. However, managers can quickly lose sight of their jobs’ main focus when they must also oversee IT functions. When you outsource, management staff no longer needs to worry about things like the difference between SLO vs SLA; they can instead focus on what they were hired to do and leave that to the IT professionals, leading to higher productivity rates.
Maintaining and operating the technology needs of a modern business requires highly specialized knowledge and skills. There is an almost constant need for continuing education and training. Without this, your IT department would quickly fall behind the times, leaving you vulnerable to system failures or security breaches.
Outsourcing means that all your IT needs are handled by professionals familiar with changes, updates, and new processes. The result is a more efficient and better-functioning technology infrastructure that does not distract from core operations.
Threats to technology infrastructure appear to be increasing. Cyber attacks, data breaches, and service outages are serious threats that can significantly impact your operations. IT professionals must stay on top of emerging threats and track how existing problems evolve and change over time. Failure to do that increases the risks to your business.
For example, if the server of a computerized business goes down, virtually all operations could grind to a halt. As a result, business is interrupted, and customers are impacted. In addition, reputational damage is likely, meaning a loss of business and revenue. The cost to recover from this type of failure is massive, and it may be more than many small businesses can absorb.
On the other hand, if you have a dedicated team handling IT services, they can remain proactive to threats and stop them before a catastrophic failure. As a result, business continues with minimal disruption, preserving the customer experience and the company’s reputation.
Lower Operating Costs
The number one reason that most companies choose to bring in outside talent, whether for IT functions or other non-critical tasks) is to reduce costs. This happens in several ways, including:
- Less system failure, which increases your reliability and reputation
- Fewer security problems (and their expensive solutions)
- Reduced HR functions
- Increased productivity in other departments
Combined, these savings can result in a remarkable return on your outsourced IT investment. However, you must also consider whether you should remove all internal IT functions or retain some. In many cases, leaving some internal technology management in place will result in a higher ROI.
When Outsourcing IT Doesn’t Make Sense
The fact that there are many great reasons to look at outsourcing your IT department doesn’t automatically make it an excellent choice for your company. Certain factors, such as company size and industry, can mean that outsourcing would be a mistake.
One such example is if you operate a business where technology plays a significant role in daily operations. Outsourcing here could potentially hurt your operations and undermine your brand image. In that case, any cost savings would likely be negated by a loss in reputation and earnings. Another example is a large corporation that operates multiple wide-reaching businesses. In this case, there is often a need for a dedicated, in-house IT department to handle daily operations.
Outsourcing IT functions can save a company money, reduce risks, and improve productivity in other areas. However, it isn’t always the right solution. That is why it is important to understand the benefits of this step before making a decision.