As your business grows, you will likely need to outsource some of your IT needs to keep up with demand.
Over 92% of Forbes Global 2000 companies rely on IT outsourcing services, as a way to access more diverse talent pools, reduce labor costs, and gain a competitive advantage with industry-leading technologies.
But are you aware of all the IT outsourcing advantages and disadvantages? This blog will explore the IT outsourcing pros and cons so you can make the best decision for your company.
Stay tuned for helpful insights on:
- Benefits of IT outsourcing
- Risks of IT outsourcing
- Tips on navigating the MSP selection process
What Is IT Outsourcing?
In exploring the IT outsourcing pros and cons, a good place to start is with a detailed definition of what managed IT services are.
IT outsourcing is a business strategy that allows your organization to access the expertise and skills of third-party service providers for IT processes and services.
By doing so, you can not only save time and money, but also accelerate your IT transformation initiatives, enhance productivity within your core business functions, and take advantage of specialized industry knowledge available from external resources.
From reducing costs to eliminating time consuming IT operations for your in-house team, the benefits of IT outsourcing are undeniable.
The importance of taking advantage of such competencies can be seen in the rise of companies switching to managed services – the global managed services market is estimated to reach USD 299.01 billion by 2023, up from USD 267.3 billion in 2022.
But what are the IT outsourcing advantages and disadvantages and how do you navigate through these to find an MSP who suits your needs?
Let’s take a closer look.
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Advantages of IT Outsourcing Services
1. Access to Diverse Talent Pools
By engaging an IT service provider, you can tap into their global network of talented professionals and draw on their skills whenever you need them.
This means that your organization will have the ability to work with the best talent available regardless of geographic location rather than simply relying on limited in-house resources.
2. Improved Project Management
IT outsourcing can have a positive impact on project management, thanks to its capability to reduce project time, cost, and risk.
This is because outsourcing also allows for greater flexibility and scalability – as you can quickly ‘scale up’ or ‘scale down’ the number of staff resources on demand as projects evolve, without compromising quality or imposing additional costs.
They can assist in everything from software development, cloud migrations, IT budgeting and long-term strategy planning, and more.
This is extremely helpful in saving money as well as ensuring quality control and delivery speed in your IT endeavors.
3. Leverage Industry-Leading Technologies
When considering the advantages of IT outsourcing services, the access they offer to industry-leading technologies is at the top of the list.
By leveraging the expertise of seasoned IT professionals and the advanced technologies of MSPs, you can quickly improve your current IT infrastructure and gain access to market-leading solutions.
Essentially, IT outsourcing helps you remain competitive while also gaining access to cutting-edge technology that would otherwise be inaccessible or cost prohibitive.
It’s truly a win-win situation for any business looking to upgrade their tech with no extra overhead.
4. Comprehensive 24/7 Support
IT outsourcing can reduce operational expenses by allowing personnel costs to be kept at a minimum while still having access to skilled expertise and innovative 24/7 IT support, regardless of time zones or traditional business hours.
From saving up to 60% by outsourcing IT while still having access to improved IT support, you really can’t go wrong with managed IT.
What Are the Risks of IT Outsourcing?
In considering the advantages of outsourcing IT services, it’s also crucial to consider the disadvantages that can arise when companies outsource.
Some of the cons of IT outsourcing include:
1. Lack of Control
Businesses that need to maintain strict compliance standards and regulatory guidelines may find outsourcing to be a drawback because they lose some control over how their IT systems are managed.
In choosing a capable managed IT provider like Tenecom, however, there will be no worries – as you’ll know you’re in capable hands with 24×7 monitoring and reliable IT support.
Check out these additional resources to learn more about the benefits of outsourcing IT services and how we can help!
2. Slow response times
The IT provider you choose means everything when it comes to solving IT problems before they can cause legitimate damage to your business.
In selecting an IT outsourcing provider, be sure to ask about average response times and response time guarantees as a way to avoid the issue of slow response times and issue resolution.
3. Lack of Consistency
A lack of consistency in the delivery of your IT services can be a severe detriment to your long term business operations and technology goals.
It is possible for a provider to make a promise and then not follow through with it over time. For this reason, service level agreements (SLAs) are crucial to any outsourcing partnership.
An SLA sets legal expectations for service quality and reliability, response times, maintenance schedules and even price structures.
IT Outsourcing Pros and Cons: In Review
In exploring the benefits of outsourcing IT services as well as the risks, partnering with a reliable IT company allows you to safeguard your business – provided you choose a reputable company.
With 24x7x365 monitoring and comprehensive support, Tenecom is your best choice for managed IT services that will drive your business forward.
Book a free consultation today to discuss your opportunity for growth and learn more about the advantages of outsourcing IT services with our trusted professionals!