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7 Reasons to Outsource Your Information Technology (IT)
Making the decision to outsource your IT department largely depends on a few key factors: the size of your organization, the specializations (if applicable) you’re known for, and unique business needs. While some businesses benefit greatly from having an in-house team, easily accessible for both on-site maintenance and essential remote tasks, there are benefits to outsourcing technical support to a third-party service provider if resources at the company are already limited or stretched too thin.
In order for the organization to focus on its objectives and fully realize the vision for its business, outsourcing certain business operations can help make this happen and alleviate the core team of extra duties outside the scope of their original job functions. In addition, outsourcing other areas of the business can greatly save on the cost of overhead. When examining what areas of your business should be outsourced, it’s important to keep in mind that there are various reasons to consider before moving forward. Let’s discuss why you should outsource your IT department and the associated benefits when you have another reliable layer of support to help you achieve success.
Benefits of Outsourcing IT Support
The IT department is an essential component of any business. Along with a variety of strong soft skills, IT professionals are often trained in highly specialized areas such as cybersecurity or networking, making them invaluable assets in the workplace. With narrowed and focused specialities, IT professionals can concentrate on the growing trends within their industry and expand their considerable skill sets. Put simply, IT can be the glue that holds the business together and keeps up with the competition.
According to Capital Counselor, by the end of 2021, the overall value of outsourced IT services will surpass $413.72 billion. Middle-sized tech companies were largely responsible for the surge in IT outsourcing growth in 2020. Despite the rippling effects of the pandemic and the lasting impact COVID-19 has had on the workforce, tech businesses have been able to increase their IT budgets and expand their capabilities, becoming one of the largest outsourced services in the market. By 2026, it is anticipated that the global IT market will be worth $425.19 billion. India, the world’s leading country in the IT market, is predicted to reach a CAGR (Compound Annual Growth Rate) of 7.25% by the end of 2025, reaching the equivalent of $121,335.149.20. However, organizations have numerous options when considering outsourcing their IT department globally. Many other eastern European countries, such as Romania, have competitive talent, technology, and resources that compete directly with the tech giant. Businesses can also consider outsourcing to Asian countries, such as the Philippines, for their IT needs. As English is one of the country’s official languages and their familiarity with partnering with the United States, communication and collaboration between the two teams will be a smoother process.
Within the last 3 years, there are a few notable trends taking place within the IT industry:
- Quality over quantity– In order for a business to achieve its objectives and deliver quality products or services, hiring managers are looking for the right professionals to get the job done efficiently and within their designated budget. To save on time, money, and resources, the focus has shifted to being value-driven, rather than paying just for the hours. The third-party service provider is able to focus on delivering the final product, one in line with the expectations of the business in a consistent manner. This does a couple of essential things for both the third party and the organization:
- Maintains the health and performance of the organization
- Drives effective decision-making
- Stays on top of the latest trends
- Improves data quality
- Inspires full engagement from both teams
- Increases sustainability of the organization
- Focusing on quality, rather than quantity, helps keep the business innovative and relevant.
- Focus on security – One of the greatest concerns among companies is the security of sensitive and confidential information. While outsourcing has proven to be a cost-effective business decision, it does come with some risk as with all potential partnerships regardless of location. Approximately 70% of companies are not prepared for cyberattacks when they occur, signifying a much broader issue: there may be a shortage of talent and expertise in this particular space (Source: inVerita). As this remains a critical issue, companies are consistently on the hunt for security specialists, who are not only cost-effective but experts in their field for reliable monitoring of assets. Outsourcing this particular service has proved successful for many companies looking to practice more diligence when it comes to internal data.
- Enhanced collaboration and strategic partnership – When a business first turns to outsourcing as a means of support, it’s usually common for simple projects or smaller tasks to be assigned. This tendency allowed the business to get a sense of how the third party worked and if they could deliver the expected quality as promised. Or, the business decides to outsource to multiple enterprises for different needs. It’s a smart way to begin your outsourcing journey. However, the trend, especially in the field of IT, favors strategic partnership with one provider for a variety of needs and larger projects. Developing this collaboration between teams eliminates the risk of dealing with multiple third parties that could potentially have vastly different ways of working. This also gives the business a chance to act as a true partner, ensuring that the whole team is aligned with the vision.
- Flexibility– The trend for increased adaptability and flexibility has become a significant factor in the IT industry, especially in the COVID-19 pandemic. The ability to adapt to different technologies and novel innovations, while also shifting and building skill sets to keep up with these new arrivals are paramount skills to ensure success in the workplace. The care in which an outsourced service provider is seamlessly integrated with the core team and the preference for a healthy and positive work environment has also shifted within the IT industry. And lastly, the flexibility the team has to either scale up during the busier peak seasons, or quickly slow down, is another crucial aspect for team structure; this just so happens to be one of the top benefits of outsourcing, allowing the business much-needed flexibility during times of change, uncertainty, or restructure.
Now that you understand the growing impact of IT and the relevant trends within the industry, let’s talk about why you should outsource your IT department.
Why You Should Outsource Your IT Department
Depending on what your business needs are and the level of skill and expertise needed in order to establish smooth operations and stay ahead of the industry competition, there are a few reasons why you should outsource your IT:
- Keeps the core team focused – One of the main reasons why businesses choose to outsource any essential operations is to alleviate the main team and keep them focused on their objectives. Oftentimes, managers observe that the team can get easily pulled into tasks beyond their job functions, which ultimately slows them down, increases the level of stress, and can result in poor outcomes. This can be especially true of employees who have more technical skills than others and are called to assist with IT matters more than their actual assigned duties. Outsourcing your IT department can help avoid this risk and keep your team moving steadily forward, meeting goals and developing professionally.
- Increases productivity – When the team has focus and clarity about their path in the business, this keeps them happy and productive, achieving levels of motivation that result in powerful benefits. Not only are they able to concentrate on delivering outstanding work, but they’ll feel valued and supported as another team has been brought on to aid with the process. Outsourcing your IT can help increase the productivity in the business, making sure that everyone has the resources they need to be able to thrive and carry out day-to-day operations without being pulled into different areas of the work. Another true benefit of outsourcing your IT is the access to tools and resources that may not be available to an in-house team. These tools can help employees perform remote work, utilize VPN, or streamline data in ways that can greatly increase productivity for everyone involved in the workplace.
- Saves and controls IT costs – Outsourcing your IT department means controlling and saving on crucial costs. You won’t need to worry about the cost of training, space, or equipment as the third-party service provider should have what they need to complete their tasks. Additionally, you will be able to pay for work completed and not be locked into a long-term engagement. And lastly, the cost of fringe is greatly reduced as you can bypass the formalities of hiring an employee, which also includes the cost of job board posting and competitive pay packages.
- Remain proactive versus reactive – In-house IT teams are often more reactive to issues that arise throughout the workweek rather than proactive. While this certainly depends on the nature and size of the business, it makes sense because the IT team is always on-call, ready, and available to help their colleagues troubleshoot an issue over the phone or virtually. If they’re housed on-site, individuals can go to a location to fix the problem and provide consultation. This can take a large portion of the workday, decreasing the chances or dedicating more time to expansive, forward-thinking projects. When you outsource your IT, you have a third-party service provider that can monitor your assets around the clock, identifying issues before they evolve into large complications, and working on new ways of creating processes in tune with your specific needs. This can also prevent downtime, maximize productivity, and decrease the loss of revenue.
- Expands talent pool with varying levels of expertise – Outsourcing your IT can also open the range of talent that can contribute to the growth of your business. You can consider multiple enterprises either domestically or globally within highly specialized fields. Not only is the option more cost-effective, but you’ll have the opportunity to work with experienced professionals that have the potential to bring new, out-of-the-box, and creative ideas to the table. You won’t just be limited to local candidates. This exchange of information between teams often results in innovative solutions that boost the reputation of the business and the third-party service provider.
- When IT needs are not regular for a small organization – If your business is small, outsourcing your IT may be one of the best options for you. The nature of IT workflow comes in waves. Some days, the demand for services will drain on time, and others not so much. In essence, it may not make sense to have an in-house team and there may not always be a steady flow of work for the IT team, creating a challenging retention problem. When you outsource your IT, you can develop reliability in an enterprise that can support the business when it needs it.
- Stays ahead of the competition – Outsourcing your IT allows the business to stay ahead of its competitors by staying on top of growing trends within the industry and using new ideas to the benefit of the company. As we mentioned, the in-house team may be busy devoting most of their time to issues as they arise. With an outsourced IT team, they have the flexibility to not only complete their projects but stay on top of developments that can affect your business.
Outsourcing your IT department can help you achieve success in the workplace. Whether you’re a small business or a large entity, having specialized expertise that can not only support your daily operations but improve processes for more relevant efficiencies, can deliver results that get you one step closer to your vision for the business.