Today’s tech-driven business environment has forced companies to keep an increasingly fast pace, both to generate sufficient revenue and to stay ahead of the competition. This competition gives no room for any mismanagement in a company’s affairs. It’s quite common for even small to midsize businesses to outsource certain departments so that they can concentrate on their primary goals. For example, hiring a payroll service or bookkeeping firm to oversee the finance functions, or even outsourcing labor forces, such as call centers.
An in-house IT department is among one of the more expensive teams to maintain, not only in terms of equipment maintenance costs, but also professional salaries. In many instances, smaller companies cannot afford hiring professional system administrators and network technicians to look after their network infrastructure. In these cases, IT outsourcing is a sensible option. It can address cost concerns while maintaining a superior level of support for a company’s technology and employees.
Cost reduction is a major advantage of IT outsourcing. There is no need to hire full-time IT staff to look after the company’s IT infrastructure, which in turn eliminates the expenses that would otherwise be incurred by hiring, manageing and training these employees, not to mention health insurance and other benefit costs. The average salary of even a junior level IT systems administrator is over $50,000 a year . A comprehensive service plan for a midsize business typically costs much less than this.
Outsourcing specialized professionals for managing the IT infrastructure frees up the workforce of a company to focus on their primary goal, revenue generation, without having to worry about managing the IT infrastructure. Any computer network downtime equals lost revenue, without exception. Not only are revenue-generating systems inaccessible in a network-down situation, but employees are being paid to wait for their PCs to come back online.
Trusted Advice and Guidance
Companies that outsource their department benefit from a team of IT professionals that are well-versed in their trade. They can analyze the company’s current infrastructure and recommend any changes for the positive growth of the company. The collective experience of a team of IT service providers far exceeds that of one or two in-house IT staff.
Better Utilization of Capital Funds
It is already clear that outsourcing can significantly reduce the expenses of a business. These saved funds then can be injected into core business functions to improve the overall output of a company.
Doing business in every industry carries some kind of a risks with it. These can be due to the fluctuation of markets, competition in the industry, regulations by the government and financial conditions, or simply the rapid changes in the underlying technology. IT outsourcing providers can help in managing these risks for their clients, especially risks that are related to security of the network, compliance issues like HIPPA or Sarbanes-Oxley, disaster recovery protocols, and IT budgeting and cost control.
New businesses that are just starting up often cannot afford a large IT infrastructure or the labor to maintain it. IT outsourcing can help a business to get established, and due to their versatile nature, they can adjust to the growing demands of a business. The dedicated IT support team can suggest effective ways to expand the IT infrastructure in ways that would reduce overall costs of ownership of hardware and software. Providers can effectively recommend and leverage cloud technologies in tandem with on-premise solutions, keeping startups agile and capable regardless of size.
Training from Professionals
A professional IT team can also train in-house employees on managing the company’s own IT department. This could be the case in large projects where the in-house employees do not possess the required set of skills or experience.
IT Outsourcing = Cost Benefits + Experience
The benefits of IT outsourcing are numerous, especially for new businesses that are just starting up and require professional help in setting up their own IT infrastructure. A well-crafted, tailor made service plan is a great way to pay for only those services that are specifically needed by a company, avoiding excess workforce costs and reaping the benefits of a highly experienced IT team at the same time.