Why would a business outsource their IT support?
The technological transformation of business and society is racing forward at breakneck speed like a tsunami, whether your business is prepared for it or not. In its wake, enterprises slow to adapt to the new opportunities and pitfalls generated by technological innovations are left discarded and irrelevant. Just look at the recent global coronavirus pandemic that has shown many companies are unprepared for the realities of remote working and, in many cases, insolvent.
But maintaining IT relevancy and staying abreast with the fast pace of technological developments can be costly and burdensome from a staffing perspective. Not only does there seem to be a new virus, new digital collaboration tool, or disruptive new technology being introduced each day, hiring the right IT support can be an enormous challenge as well.
Maintaining IT, relevancy can be particularly difficult for small to medium-sized organizations that may not have the financial resources to staff a fully functional, in-house IT department with the know-how and expertise necessary to navigate complex IT tech support issues such as cybersecurity, network security, data backup and recovery, and cloud services.
Short of paying top dollar for your own team of tech wizzes and the most modern, cutting-edge IT infrastructure, one of the best options available to businesses looking for reliable, seamless, and up-to-date IT services is to outsource some or all of their IT tech support needs to a Managed Service Provider (MSP).
Why Outsource Your IT Support?
Outsourcing is a common business practice in which a company or business contracts tasks to a third-party provider rather than develop in-house capabilities.
For example, many businesses opt to contract cleaning services out to a cleaning service provider rather than hire their own janitorial team.
Outsourcing is practiced by businesses both large and small. Small businesses, for example, may turn to outsource certain tasks to make up for a gap in their skill and capabilities. Meanwhile, larger firms may opt to outsource for cost-saving or business practice engineering reasons. Of course, these are but two of the many reasons outsourcing certain tasks, such as IT tech support, can be a smart move.
The most common reasons business choose to outsource include:
- Allowing them to focus on their core business.
- Cost reductions
- Strategic growth promotion
- Operational efficiency
- Staffing flexibility
- Risk management
- Develop other areas of competitive advantage.
We will explore each of these common reasons and more in greater detail later in this article.
What IT Services Can Be Outsourced
With a Managed Service Provider (MSP) to partner with, businesses can choose to outsource some or all of their IT tech support needs.
Outsourced IT, service providers can work with your existing IT staff and help support overflow needs or provide expert advice and guidance on complex IT issues or strategies. Or, businesses can totally outsource all their IT tech support. This flexibility makes partnering with MSPs a viable IT solution for businesses of all sizes, from corporations with existing IT capabilities to startups who want to focus on their core operations.
Common IT services companies choose to outsource include:
- IT Management
- IT Budgeting
- Technology Planning
- IT Security Threat Prevention and Remediation
- SPAM filtering
- Network installation
- On-site and Remote Support
- New User Setup and Training
- IT Project Management
- Network Management
- Cloud Computing
- Task Accountability
- Infrastructure Upgrades
- Technology Rollouts
- Data Backup Management and Administration
- Network security
- Data backup and recovery
- Cloud services
- Application development
- Secure Employee Termination
- Reactive Support Services
- Network Operations Center
- Technology Recommendations
- Data storage
- Technical support (IT help desk)
10 Advantages of Outsourcing IT Tech Support
1. Lower operating costs
The most obvious and compelling financial reason to outsource IT tasks, or your entire IT department, is the lower cost structure a Managed IT Service provider can provide.
Hiring, training, and onboarding staff is expensive. Furthermore, investing in IT infrastructure will require enormous capital expenditures that do not pay back over a long period of time. Outsourcing IT infrastructure and management to a Managed Service Provider with existing capabilities and expertise can provide a business with high-quality IT services at a financially attractive and fixed rate.
IT support has spread into almost every aspect of modern business from the point of sale and to every employee's desk, station, or work area.
Maintaining and managing IT can rapidly overwhelm your staff and siphon away valuable time and resources that could otherwise be directed towards higher payoff activities. Outsourcing to a Managed Service Provider (MSP) allows businesses to refocus their efforts toward growing the business’s reach, revenue, and profitability rather than dealing with IT downtime.
3. Increased capital funds
Outsourcing means that businesses can focus their attention and their capital on the areas that matter most. Capital that would have otherwise been allocated towards IT can be redirected.
Outsourcing can also improve a company's financial bottom line by eliminating the need to show return on equity in non-core areas.
4. Access to top-tier IT capabilities
5. An infusion of cash
Sometimes outsourcing IT can involve an infusion of cash into the business that can further a business’s core aims. Existing IT equipment, infrastructure, and facilities have value and can be sold to generate cash on hand.
6. Plug-n-play business process re-engineering
Business process reengineering is a type of business management strategy that involves rethinking or reworking existing business workflows to improve their product or service, cut operational costs, and become more competitive.
Oftentimes, a business's IT practices can become mired in legacy practices or weighed down by obsolete IT infrastructure.
Outsourcing IT can mean handing over IT tech support to a Managed IT Service Provider (MSP) that has already been engineered to world-class standards. That means by outsourcing their IT support; businesses can realize the immediate benefits of top-tier IT expertise, infrastructure, and workflows without painful restructuring and rebuilding that may take years.
7. Access to new IT resources
Some IT resources can be difficult to obtain or to build from the ground up. An example is cloud networks. Many businesses getting off the ground today may opt to outsource their cloud infrastructure to public cloud providers such as Amazon Web Services (AWS) or Google Cloud Platform (GCP) rather than build their own private cloud.
When an IT resource is out of reach, outsourcing may be the answer.
8. Shared IT risks
Making large capital investments in IT infrastructure or capabilities can carry enormous risks.
For example, what if the wrong decision is made?
What if the business climate changes or the IT direction becomes untenable?
In all these cases, outsourcing can provide an organization with the flexibility to stay agile and deal with future uncertainties.
9. Streamlined IT management
IT infrastructure and management can get out of control in a hurry if a business’s leadership isn’t paying attention.
Technological innovation and implementation are major drivers of competitiveness in the marketplace today. Falling behind or losing control of your IT infrastructure and management can spell doom for companies big and small.
Outsourcing key IT tech support tasks to an expert Managed Service Provider can help provide the guidance and oversight needed without abdicating management control.
10. Guarantee IT compliance
IT systems are constantly evolving. Companies must evolve new procedures and methodologies just as rapidly to manage evolving IT threats and IT opportunities.
Most businesses, however, are not IT-focused technology experts. Outsourcing the management of complex IT systems to a knowledgeable Managed IT Service Provider is one tested method for maintaining IT compliance and security without breaking the bank.
I spend much of my time with business owners and leaders, helping address digital transformation and business growth. If you would like to discuss further how I might be able to help your business, email or call and let's set up a call.