Cost Benefits of IT Outsourcing

When thinking about ways to keep IT services consistent in a changing employment environment, the topic of outsourcing often comes up. While outsourcing promotes efficiency and increases the speed of delivery, what are the benefits from a cost perspective?

Staffing Flexibility

Outsourcing any part of business operations provides a degree of staffing flexibility over hiring professionals in-house.

It does not make sense, these days, for every organization to have their own internal IT department. Some firms may be too small for in-house to make sense, while others may be on a budget or only have occasional IT needs, such as experienced management and implementation.

For many small and medium businesses, IT outsourcing offers staffing flexibility because the firm only pays for the help it needs at the time of need. This saves money over hosting an internal IT department and paying for labor, benefits, hardware, and software.

Many managed services providers offer multimodal support — for instance, chat, phone, or video support — to quickly address any problems that arise. When there is a need for it, MSPs may be able to make in-person visits. The array of options for support means that your business does not have to sacrifice troubleshooting and tech support by taking IT services offsite.

Secure your Bottom Line

Outsourcing IT provides a way for businesses to focus their resources on their core competencies rather than on paying salary and benefits for an in-house IT team.

By outsourcing duties that are outside these core competencies, such as IT, companies can reduce labor costs and overhead. This means a greater pool of money to cover mission-critical operations or attract A level talent for core competencies.

Reduce Recruitment and Training Costs

Yes, in-house IT teams bring skilled expertise to an organization. However, that expertise does come with a cost. To attract job candidates, organizations need to invest in recruiting, interviewing, and onboarding. Candidates need job training, whether it’s to start off in a new position, cyber security training to keep up with the latest trends, or annual refresher training on roles and responsibilities. Internal IT staff have strengths, yet the reality is that few receive enough training to keep their skills up to date with all of the changes in technology. Your organization can pay for them to stay up to date, but that represents a significant additional expense.

With outsourcing, the IT agency you have partnered with takes on the financial responsibility of recruitment, training, and skills update. Your organization gets top-quality IT employees available to help as needed, without also assuming the financial burden of paying for workers to remain up to date in an industry that changes rapidly.

Free Up Resources

A move to outsourced IT frees up significant resources, which your business can use to further its primary mission. So whether you have infrastructure projects that have been on the back burner or want to move in a new direction but don’t have the capital to stretch, you can feel good about paying for managed IT services and using your capital to help your business perform, meet customer demand, and grow without worrying about how you will cover the next tech emergency.

Access Best in Class Technology Without Blowing a Budget

When you keep IT in house, you have to purchase all of the resources your team needs. Adding to the challenge is the fast pace at which IT moves. Businesses cannot afford to purchase the latest version of a software rollout for all employees. Many firms often make do with legacy versions of software as a result.

With IT outsourcing, companies access not only tech talent with the latest skills but newer technologies. IT firms often receive bulk discounts of software licensing, which means they can pass on the cost savings to companies.

Whether it is software or hardware, most businesses simply do not have the capital needed to lay out for every new investment. As a result, they have to get by with older equipment and decide whether to replace outdated  IT infrastructure with the newest tech toys on a case by case basis. This decision can leave businesses feeling hampered: If they had more money, they could upgrade their resources and better compete — at least, until the technology changes again and they have to start over.

Equipment failure — for instance, when an old server fails and must be replaced immediately — can cause a financial setback, putting smaller firms in uncomfortable positions.

With outsourcing, your business will enjoy access to best in class technology without blowing the IT budget. Many agencies provide access to the latest IT resources. Due to economies of scale, outsourcing firms can spread out costs of upgrading among their clients. This means your company enjoys the newest technologies for far less than it otherwise would.

What’s more, the costs of outsourcing are predictable, which means you can bypass the financial insecurity that’s often associated with having IT in-house.

An in-house IT department provides continuity and risk management, but so does outsourced IT. When you factor in all of the cost savings that outsourcing brings, the choice is clear. For many companies, an in-house IT department is no longer necessary and it does not save money.

Once you’ve made the decision to outsource, identify a managed services provider that offers the core services you need and understands the niche in which you operate. AGMN Networks caters to small and medium businesses that want fully managed IT services or sub-contracting for overflow IT. To discuss your IT needs with us and find out how we can save your company money while delivering superior continuity and risk management, time effectiveness, and skilled expertise, contact us.