Outsourcing has become a common practice across all companies, but it’s important to understand why so many businesses have adopted this practice in the first place. Not only does it help make sense of the strategy, but it can also help you identify areas within your business that can be improved through an outsourced partner.
Wondering which of the following would be a reason a company would outsource their IT support on a large scale? Let’s take a closer look.
Reasons Why a Company Would Choose to Outsource IT Support Needs
According to projections, the outsourcing market will surpass the $800 billion mark before 2029, so this trend is expected to continue for the foreseeable future.
If you’re wondering which of the following would be a reason a company would outsource their IT support, the answer is “all of them”.
1. Cost and Financial Pressure
The first and most obvious reason why companies outsource their IT needs is to help them reduce costs and lower business pressure.
Having a whole IT team can give you a huge amount of flexibility. However, this also means that you have several specialized employees on your payroll, not to mention the tools and software they need to get the job done.
By outsourcing, you can leverage the knowledge of multiple experts and ensure that they have the right resources. You just need to verify that you’re working with a trustworthy provider that has an experienced team and uses top-notch software.
2. The Need for Custom Solutions
The need for custom solutions is another reason why companies outsource their IT needs.
There are many cases where out-of-the-box products don’t necessarily meet your requirements or provide you with the features you need.
Fortunately, outsourced IT services allow businesses to build custom solutions without having to commit to a large, long-term team.
Instead, you can work with your outsourcing IT services provider until you have the perfect solution, then provide maintenance yourself or keep the same agency on a maintenance retainer.
3. Better Talent Across a Global Pool
A local shortage of talent is another big reason why companies outsource their IT needs.
While location-based employees don’t have a choice, IT team members can perform their duties remotely. This means that companies don’t have to settle for the talent available in the local market, especially if they need team members with more advanced skills.
Outsourcing allows you to tap into different global pools and only work with individuals who have all the skills you need. From technical skills to language and communication, you can create a list of abilities and decide to only work with firms that meet your needs.
4. Focus Most Resources on Core Business Needs and Activities
There are many cases where a company’s products have a big IT component, but are not really technology-based goods.
In some of these cases, it’s common for companies to spend too many resources providing IT support and not enough time working on their core offerings, which can result in long-term financial loss.
The good news is that IT outsourcing can help remove the burden of using technical skills and knowledge to solve end-user issues.
Instead, you can have an IT company deliver the technical support for your products or apps, giving your team the time and bandwidth to perfect your core product and deliver a top-notch user experience.
5. Boost Data Security
Boosting and hardening your data security is imperative to prevent breaches and protect your company. However increasing security levels without growing your IT team is challenging, unless you opt for outsourcing this part as well.
Because their main focus is IT, outsourced service firms utilize the latest technology and always observe cybersecurity best practices. This means there is a lower chance of experiencing a breach due to a direct attack on your IT system, so your data security levels are higher across the board.
6. Reduce Upskilling and Training Requirements
The bigger your IT department, the more tasks you’ll need to complete. Not only this, but as relevant technology evolves, you also need to deliver the right training and upskilling.
While still necessary, the pressure and cost that comes from upskilling and training your IT team is greatly minimized when you outsource your technology needs.
Most IT outsourcing firms have a set training program that they personalize based on your needs. When you outsource technology tasks, your external IT agents receive extensive training to ensure they know what their responsibilities and expectations are, as well as the resources they have available and the standards they have to adhere to.
7. Higher Productivity and Efficiency Levels
Managing a large IT department is not only expensive, but it can also get time-consuming. Likewise, if you combat this by implementing more managers and high-level team members, your IT budget can quickly outgrow your projections.
An outsourcing partner can be a great alternative to boosting productivity and efficiency without skyrocketing costs.
The reason for this is that IT agencies have experienced team members and specific protocols already in place that keep them on the right track. All of these contribute to a more productive and efficient workforce, especially when compared to companies that are just discovering and establishing their technology processes.
Types of Outsourcing
With IT services making up a whopping 72% of all outsourcing contracts, it’s imperative to understand the different models for working with external suppliers. Here’s a brief description of the most common models.
- Offshore Outsourcing: Hiring service providers in distant foreign countries to get lower labor costs and access specialized skills, may involve time zone differences.
- Nearshore Outsourcing: Similar to offshore outsourcing, but it utilizes providers in nearby countries to make up for time zone differences that impact the partnership.
- Onshore Outsourcing: Outsourcing services to the same country (for instance, to other parts of the US) to ensure easier communication and regulatory compliance.
- Cloud Solutions: The use of cloud-based services and platforms provided by third-party vendors to manage IT infrastructure, applications, and storage over the internet.
Conclusion
Outsourcing IT needs is not rare at all, but is actually a common practice across all types of companies. There are many advantages to outsourcing areas of your IT department, which is the reason why the outsourcing industry is set to grow at a steady rate for the next half-decade.
Are you looking to outsource parts of your IT? Get in touch with Succuri today and learn how we can support your company.
