Outsourcing of IT is certainly not a new concept, but it is experiencing a renewed focus as businesses once again question whether to hire additional employees or outsource their needs to experts in the field. This challenge is always complex and leads to a number of internal conversations. However, for most organizations, the reasons to outsource are often far more compelling than using an internal resource to provide the service.
Here are our top five reasons as why outsourcing IT could be the best solution for your business:
Reduced Staffing Costs
Hiring staff can be expensive when taking recruitment fees, salaries, training, and other costs into consideration. Particularly when, after taking on these expenses, your best employees are vulnerable to being poached by a competitor. Rather than shouldering the headcount and burden of an IT department, allowing a third party to manage everything on your behalf saves both time and money.
Benefit from Economies of Scale
Unless you are in the IT business, you are unlikely to have access to the same economies of scale as an outsourcing supplier. Thanks to this reality, outsourcing helps to drive down costs and creates savings that should, in theory, be passed on, at least in part, to the customer. What does this mean? Put simply, it means that the cost of your service delivery should be lower when outsourced.
Enhance your Financial Ratio.
As a company, you are routinely analyzed and evaluated by external investors and potential partners based on your financial ratio. Your turnover, profits, and employee count are assessed and scrutinized against one another for their market to book value. When you make the decision to outsource your IT function, or a significant portion of it, you position yourself well to improve your ratios. How? By delivering IT services without recruiting more staff internally you’ll have fewer actual employees, spend less on hiring top talent, and reduce your overall book value.
Being at the Cutting Edge is Easier.
When IT is not your core business its less likely that you’ll have the in-house capacity or expertise to remain at the cutting edge of technology. Identifying advancements can prove difficult in this ever-changing tech landscape. An IT services provider who breathes IT day in and day out will have a vested interest in knowing everything there is to know about the latest technologies, and where they can be leveraged to the further advantage of your business activity.
Identifying IT as a Business Enabler
Outsourced IT service providers, like our team at itcl.biz, also offer consultancy and specialist advice. By offering a combination of industry leading advice and business planning services, outsourced providers like us can offer insights into how your business compares to competitors and identify the areas where IT could be used to your business advantage.
Peace of mind
Some IT issues can be worrisome – disaster recovery, data security, business continuity are all common concerns. Outsourcing to an expert supplier alleviates the pressure of such worries. Knowing your IT function is in safe hands leaves you to focus energy on delivering other key business elements. Furthermore, having a robust contract in place establishing roles and responsibilities, service levels, and the consequences and resulting action when these are not met, affords you total peace of mind.
IT is no longer seen as an operational department. Today, the topic of IT leads the conversation about how to offer strategic advantage. Many businesses recognize they lack the expertise to maximize this advantage and outsource their IT to an expert third party supplier. Additionally, as IT infrastructure comes under an increasing threat to both data security and physical breaches, its more important than ever that companies: 1)thwart such attacks by putting in place robust policies, processes, and procedures and 2) recover as quickly as possible in the event of an attack. Again, this leads many organizations to outsource their IT and rely on third parties with a greater level of expertise in than they possess. Ultimately, this leaves businesses with more time and resources to focus on their core capabilities, allowing them to make progressive strides forward in delivering and exceeding all areas of their business plan.
Find out more about how ITCL can help with your outsourcing needs.