How IT Outsourcing Can Reduce Costs for Your Business

 In advice, IT Outsourcing

In any business, there are plenty of wheels you have to keep turning to function. Not only are you responsible for your customers’ happiness, but you must also keep things running smoothly behind the scenes. Information technology services have undeniably become an essential part to most businesses, becoming more relevant each and every day. With the increase in relevancy, it begs the question on whether or not to consider IT outsourcing.

Every company’s IT routinely needs updates and changes.  Your business may be scaling up, or you may wish to make your data more secure. Each year, new challenges and even new threats, like ransomware, emerge. With the constant changes, companies must keep up to stay competitive. Because of this, IT costs can be difficult to anticipate. Any business owner prefers predictability, especially when it comes to costs.

IT Outsourcing takes much of this pressure off of your business, and it can even save you money. You can see better results by outsourcing your IT than you would by having it managed in-house. While an outsourced IT team certainly is not for every business, in many cases its advantages over in-house staff are significant.  The savings alone may be enough to consider a change.

The Cost of In-House IT Staff

Before considering how an IT service provider can save your business money, it’s worth looking at the costs of having your IT work done in-house. If you don’t currently have an IT specialist working with your company, it may come as a surprise that employing one comes at quite a cost. According to PayScale, the median salary is about $50,000, with higher salaries reaching into the $70,000 and to $90,000 range.

IT salaries can vary greatly based on geographic region.  However, an employee’s salary also reflects his or her education, experience, and expertise. With the specificity that your IT work calls for, it can be difficult to gauge which candidates will be able to perform the work you need from a standard interview. Without previous expertise or knowledge, you can easily miscalculate the expectations and salary of your new hire. Plus, added costs of hiring a new employee add to the total. If hiring a full-time employee, you can also expect to pay the costs of any benefits your company typically provides, as well as the employment taxes. According to CNN, you can expect to pay 25 percent on top of an employee’s base salary due to these additional costs.

All of this comes from considering hiring just one employee.  In many cases, it can be a lot to ask one person to keep track of all your IT work. And what happens when your worker runs into a problem he or she alone can’t figure out? Depending on what your company needs, you may require more than one person, or even a small department, to run your IT. Take your costs for employing an IT worker (along with benefits) and multiply that by however many employees you need. You’ll see it adds up quickly!

The Additional Costs of Keeping IT In-House

When considering the costs associated with keeping your IT in-house, you must also take into account hidden, “soft” costs of having another employee join the team. Consider all of the associated costs of onboarding a new employee. First, you have the man-hours that go into recruiting a new employee. With that, you have to think about the fees for job board placement and recruiters. After those costs, other costs go to training the new employee or to potential errors caused by said employee. Each time you bring in a new IT employee, these costs could come into play.

Having another employee using your business’ resources leads to more costs. More of your budget will need to go to providing an adequate work station for the new employees. If you already have a tight budget, you might have to start looking at your office space costs.

IT Outsourcing Is There When You Need It

As with any critical function in running a business, if you’re in dire need of IT management for your firm, but you’re not willing to spend the money for quality work, you’re not going to get favorable results in IT outsourcing. However, outsourcing the work can provide you with the same, or better, work for a fraction of the cost.

Regular employees also take vacation and get sick, and your company pays them on those days. By contrast, an outsourced IT company is available whenever you need them, even available on holidays for emergencies.  Even if your annual outsourced IT costs approach the amount of an IT employee’s salary, you still have to account for the value of 100 percent availability that an IT management company provides.

IT Concept

IT Outsourcing Experts Work Efficiently To Save You Money

There’s always a risk in choosing someone to join your team, whether that person is in-office or outsourced. Despite the effort you put into recruiting the perfect employee, it may not work out. The person you choose may not work as efficiently as possible. This is especially true if your IT needs deal with unfamiliar territory for you. You may not know if your new employee is working efficiently and effectively.

By outsourcing your IT work, you invest in a group of professionals who have aligned their business goals with yours. They strive to work efficiently, solve the problems at hand, and anticipate the future of your business’ needs. The money you could be spending on an employee’s salary could instead be used to access a resource of tried-and-true professionals who have experience with the many layers and evolving aspects of IT. The combined experience of a professional IT services management team alone makes it an option worth considering.

Everyone worries about their company, especially relating to costs. Approaching a new territory may seem frightening, but it can yield beneficial results. Knowing the intrinsic value of technology to your business operations, you should consider IT outsourcing. No, that company will not be on your campus at all times. No, it will not have a specific person on your payroll. However, compare that against the advantages of a hired team of professionals who focus solely on IT and nothing else.

That is something you cannot put a price on.

Leave a Comment