5 Benefits of Outsourcing IT Services for Your Business
Whether you're running a startup or managing the operations of a large company, you have probably considered outsourcing some aspects of your business, like information technology (IT). But you might not be sure if it's the right strategy to adopt.
Should you outsource IT services? Or perhaps, having an in-house IT support team is the better option for your business?
The answer depends on factors such as your available resources, the size of your business, and your goals and priorities.
If you're leaning towards letting a third party handle your IT functions, here are several benefits you can expect to gain for your business.
1. Cost Reduction and Management
The ability to reduce and control costs is the biggest reason businesses turn to outsourcing. Rather than hire your own IT team and pay for their training, benefits, and taxes, you can save a great deal on labor costs (while benefitting from highly skilled workers) when you outsource.
Lowering your IT costs is another way to save money through outsourcing. Your business incurs fixed costs when you install, maintain, and upgrade servers, networks, security, and other components of your IT infrastructure on your own—and this can be very expensive.
By outsourcing IT support, you can turn fixed IT costs into variable costs, meaning you pay only for what you use. This will make operations a lot more cost-effective, which is ideal for startups and small and mid-size enterprises (SMEs) who are trying to minimize their operational costs. The money you save from outsourcing IT can be used for your other income-generating activities.
2. Increased Efficiency and Competitive Advantage
"Enabling competitive advantage" is one of the key trends identified in the Deloitte Global Outsourcing Survey 2018. In fact, this is one of the main reasons companies decide to outsource, even more than cost optimization. The survey notes that companies who outsource gain a competitive edge by changing how they operate and boosting their agility, efficiency, and effectiveness.
What does this survey finding mean for your business? Put simply, you can be competitive in your industry by cutting down the time it takes to manage all your IT needs in-house.
3. Access to IT Skills and Know-How
Small businesses usually don't have the budget and resources to implement IT systems that larger companies do. Outsourcing levels the playing field between SMEs and corporations by enabling smaller companies to gain access to the expertise of an IT solutions provider for maximizing their return on investment.
4. Higher Employee Morale
Sure, you may have an accounting guy in the office who's a pro at computers and networks. But if that employee juggles multiple responsibilities, including tasks outside of his job description, can you expect him to stay in the job? Most likely not.
Outsourcing IT services to a third-party provider allows employees to work only on the job they're hired to do. Your employees are happier, and they perform at their peak because they stay focused on what they do best.
Apart from boosting employee morale, you also gain other advantages from outsourcing: retaining your talents and lowering staff turnover.
5. Improved Focus on Core Business Functions
As an entrepreneur or operations manager, you know how it can be overwhelming to handle every aspect of the business. Well, you don't have to if you can enlist the help of a company that can provide professional IT services such as systems integration, security systems, and more.
Outsourcing allows you and your employees to focus time, money, and energy on what matters—like growing your business. Rather than wasting your precious resources on troubleshooting hardware or software issues and making tough IT-related decisions, you shift your focus on activities that add value to your customers and generate more income for your business.
Especially for startups and SMEs, outsourcing business needs to an IT solutions provider makes a lot of sense. Costs are minimized while efficiencies are maximized.
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