Why are more companies outsourcing IT than ever before? Discover the ten reasons why IT outsourcing could be advantageous for your company too.

In 2017, the percentage of organizations’ total IT budgets spent on outsourcing rose to 11.9%.

As the technology needs of businesses have become more complex, not every business has the means or the staff to stay competitive. IT outsourcing gives even the smallest businesses a strategic advantage. IT can even help them compete on a global scale.

If your business isn’t meeting its IT needs, find out more about IT outsourcing below. Outsourcing could be the choice that finally spurs your business’ growth.

What is IT Outsourcing?

IT outsourcing, sometimes referred to as Managed Services, is when a company hires another business to take responsibility for internal IT resources. Outsourced IT companies are often referred to as Managed Services Providers, or “MSPs.” There are other forms of IT outsourcing that don’t fall under the Managed Services category.

Companies like Be Structured Technology Group in Los Angeles offer managed IT services. They provide services such as the following:

• Cloud services
• Email solutions
• Server monitoring
• Server virtualization
• Backup and disaster recovery services
• Cybersecurity services
• Virus & Malware protection
• Voice over IP (VoIP) solutions

You can incorporate outsourcing into your existing IT strategy. First, you should do an internal assessment to determine which functions you need to outsource. Once you do, you’ll be able to provide your company with the best available technology at the lowest possible cost.

10 Reasons to Outsource IT

The business landscape is more competitive and interconnected than ever. Many of the solutions listed above are now essential for businesses to survive.

However, most businesses don’t have the means to hire new employees to staff an IT department. This is due to several factors.

For one, hiring an internal IT staff is expensive. IT comes with a great deal of overhead.

There’s also training to consider. Finding the right candidates can take months.

Secondly, there is a growing shortage of IT professionals. By one estimate, there were 263,586 unfilled IT positions in 2017.

Companies outsource IT for a variety of reasons. Some companies do have an IT department but need external services to augment it. Here are ten reasons companies are choosing IT outsourcing.

1. To Reduce IT Costs

Ask any CFO and they’ll tell you that the IT department can be a cost center. The average small business spends about 6.9% of their revenue on IT costs. Midsized companies spend 4.1% and larger companies spend 3.2%.

These may seem like paltry amounts, but they add up to a large portion of spending, especially for small businesses.

It’s true that many businesses waste money on IT spending, but technology is also crucial to your business operations. Outsourcing is a means of reducing IT costs without sacrificing quality.

2. To Save On Labor Costs

The average base pay of an information technology specialist is just about $67,000 per year according to Glassdoor. Overhead costs compound this salary, though.

If you wanted to hire an entire IT department, you’re looking at hundreds of thousands of dollars each year.

Many businesses outsource IT to get access to a team of professionals without paying the overhead costs of an in-house staff. One of the biggest concerns that companies have, however, is the issue of control.

You’re giving an outside group of people access to your network. They may be responsible for your data security. They may also implement your backup and recovery plan.

The good news is that outsourced IT companies have years of experience with these arrangements. Not only are you saving money on your IT costs, but you’re also working with experts who have more experience than many of the job candidates you can find on the market.

3. To Maintain Uptime and Service Continuity

Hardware and software maintenance is becoming more challenging. For example, a marketing department at an enterprise company uses an average of 65 different applications. That means large businesses are using hundreds of applications, all of which require updates and configuration.

For your company to maintain service, you need end-to-end, uninterrupted functionality. An outsourced IT team can help you choose and manage your software and hardware resources to ensure service continuity.

4. To Reduce Risk

Every business, no matter how small, encounters risk. It may come from volatile economic conditions, external cyber threats, or a surge in competition.

When risk rears its ugly head, you don’t want to be on your own.

Outsourcing IT functions lets you share some of your risk with your IT company. They’ll maintain an immense base of information technology knowledge. They can help you address cyber threats and outflank your competitors.

5. To Stay Focused on Core Objectives

Having to spend time dealing with IT issues takes you and your team away from other essential tasks. One of the simplest reasons to outsource IT is to free up time. Instead of chasing down a network issue, you can focus on delivering value to your customers.

Outsourcing also helps put your mind at ease. You’ll play a role in your IT environment, but not as direct a role as you would with your own staff.

6. To Access New Resources and Technologies

Outsourced IT companies have expertise with the latest software and hardware. They can help you choose the best technologies and provide you access to new ones.

Outsourcing to gain new technology is a strategic way to avoid obsolescence. You can future-proof your business and stay competitive.

You may not have time to keep tabs on emerging technologies. But you can guarantee your managed service provider does.

Outsourcing can also give you access to other technology services. For example, if your company is going green, some managed service providers can help you in your initiative. They may even be able to provide you with technology recycling.

7. To Create a Backup and Recovery Plan

Nothing is more crucial to your business data than a backup and recovery plan. If your company has immense amounts of data, this may be a difficult task to do on your own.

An outsourced IT team will either act as a broker between you and a cloud storage provider. They may also help you install an internal backup and recovery plan. They’ll typically advise you to back up your data in several locations.

For example, you may have a physical server backing up data on-site, but your IT provider may tell you to back up your data on a virtual server as well.

Once you establish your backup plan, your outsourced team will help you create a recovery plan. They should give you an estimated time to recovery, should the unthinkable happen.

8. To Ensure Compliance with Regulations

If you followed the implementation of the General Data Protection Regulation (GDPR) in Europe, you’re aware of how burdensome regulations can be to businesses. No business can go without data in today’s economy, but not all businesses have the means to comply with data regulations.

Currently, U.S. data regulations aren’t as strict as Europe’s. But lawmakers are eyeing GDPR as a possible model for future regulations. The regulatory landscape changes year by year, so it pays to prepare yourself.

An outsourced IT team will have extensive knowledge of all the regulations that will apply to you. They can help you address risk at a global scale and meet compliance standards wherever you do business.

9. To Increase Data Security

Increasing data security might be the most compelling reason to outsource IT. It’s becoming difficult for small-to-mid-sized businesses to keep up with the growing list of cyber threats.

Whether it’s phishing scams, malware, or DDoS attacks, it takes an entire team of professionals to protect a business. An outsourced It team can help defend your business with the following services:

• Risk and vulnerability assessments
• Intrusion detection and prevention
• Managed network access control
• Managed next-gen firewall
• Advanced Security Incident Event Management (SIEM)
• Network, systems, and applications security assessments
• Development of security policies and procedures
• Security architecture assessments
• Security engineering

Small businesses face the same cybersecurity threats as the biggest businesses in the world. Outsourcing your cybersecurity needs can provide you the same defenses they have as well.

10. To Become More Competitive

Outsourcing your IT needs can boost workflow in your business. You’ll get access to technology that makes you operate more efficiently. The IT company you work with can even help you save time and resources.

Companies that implement IT themselves must do research, then develop and install their IT infrastructures. If you don’t have the staff to do this on your own, you likely can’t afford the costs, either.

Outsourcing prevents you from having to pass on costs to your customers. You’ll be able to bring products to market faster and provide your customers with state-of-the-art service.

IT Outsourcing Can Help You Meet Your Tech Requirements

In a survey by Indeed.com, 86% of hiring managers said they find it challenging to find and hire tech talent. As the technology skills gap continues to grow, more and more companies will need to rely on IT outsourcing to fill their needs.

Is your business looking for branding and communications guidance? Do you need help with your IT outsourcing strategy or another tech project?

Contact Mike McRitchie to get business help right now. Mike is a small business strategist with over 20 years of experience as a project manager, program manager, and director-level leader.