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7 Advantages Of Outsourcing Your IT Functions

Apr 12, 2019
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Technology is the engine that drives nearly every business out there today. But with the exception of technology companies themselves, the technical side of things is not the core competency of most businesses.

But someone has to manage the technology and critical data for these companies.

The need for dedicated IT staff is undeniable. The question many businesses have is whether they should be building an in-house team or outsourcing their IT functions to a Managed Services Provider (MSP).

Have you been considering outsourcing your business’s IT functions, but reluctant to make the leap? Keep reading to learn about the 7 top benefits of outsourcing your IT department.

Top 7 Reasons to Outsource Your IT Department

1. Cost Savings

This is perhaps the most enticing reason for any company—particularly small and medium-sized enterprises (SMEs)—to consider outsourcing their IT functions. There are several areas where these savings can be realized:

Recruitment costs: Qualified and experienced IT professionals are in high demand. Sourcing, vetting, and attracting the best candidates can cost you a lot of time and money. Going with an MSP takes this costly headache off the table.

Overhead costs: If you decide on an in-house IT team, you’ve got to have somewhere to put them. This can be especially tough if space is at a premium when you’re just starting out. When you outsource, most functions can be performed remotely, with the option of on-site service when you need it.

Training costs: The world of technology changes at a phenomenal rate. It is imperative that IT professionals stay up to date, and it isn’t cheap to do so. MSPs work hard to ensure their teams remain on the cutting-edge of all aspects of IT at no cost to you.

Salary Costs: Experienced full-time IT professionals do not come cheap. As mentioned earlier, they are in high demand—allowing them to demand even higher salaries.

According to PayScale.com, a Computer/Network Support Technician (at the lower end of the abilities scale) earns in the neighbourhood of $43,501 per year or $21/hr. A Network Administrator (somewhat more experienced) earns roughly $53,666 a year or $26/hr. These are by no means insignificant numbers to a small or medium size enterprise.

A Managed Services Provider (MSP) on the other hand can cost as little as $8/hr on a monthly contract, depending on the size of the client company. With an MSP, you also don’t have to worry about employee carrying costs (CPP, paid holidays, benefits, sick days, etc.).

And then there is the issue of scalability. With MSPs, you’re paying only for what you need. The cost of an outsourced team getting paid only while they work can scale incrementally as your company grows, as opposed to large leaps in salary expense with every new in-house hire.

Hardware Update Costs: Technology is constantly changing and evolving, which means your hardware isn’t going to last forever. It will need upgrading as technology, and your company, continue to grow. On a monthly contract, the cost for capital expenditure and maintenance of your system’s hardware falls on the MSP, saving your business those costs.

IT Services Cost Saving

2. A Whole Team of Experts

We’re going to let you in on a secret: the all-knowing IT pro just doesn’t exist.

If you’re an SME looking to put together an in-house IT department, chances are you can only afford to hire one or two people to do the job. The odds are long that you’ll be able to find (or afford) one or two people who have the knowledge and experience you need to keep your systems running smoothly and your data protected.

When you outsource your IT functions, you give yourself access to the MSPs entire team of experts. MSPs have highly trained specialists in any (and all) areas you require, from Help Desk and Database Management to Security and Disaster Recovery—and everything in between. With that much combined real-world experience, it is highly unlikely you’ll face an issue they haven’t dealt with before. With a team of such varied experience, it is also likely they have worked in your industry before and have a real understanding of your business.

IT Experts and Services

3. Constant Training

It is in the best interest of MSPs to make sure their IT pros stay current in the ever-changing world of technology—so they spend the time and money to make sure they are. On top of continuously updating industry certificates, MSP technicians are constantly training to keep up to date on the latest skills and trends in order to offer the best solutions to their customers.

4. 24/7 Monitoring

Excessive downtime can be crippling to any business, and the issues don’t always arrive between the hours of 9 and 5. In fact, you can bet the worst possible time for your business tech to go down is exactly when it will happen.

The best way to avoid problems is by constantly monitoring your systems and data, spotting issues before they become problems, and being proactive. Unfortunately, 24/7 monitoring is something most in-house IT departments generally just don’t have the resources to do. MSPs, however, will offer this service, 365 days a year, as part of a monthly contract. This allows you to keep your systems up to date and secure, leaving you far better equipped to ward off cyber attacks and protect your valuable data.

IT Monitoring Services

5. Faster Response Time

It might seem counterintuitive to think an outsourced IT professional can respond to issues faster than an in-house employee. But the fact is, when there is a critical issue to resolve, your in-house tech may be so overwhelmed with other requests and daily necessities that you’re stuck “waiting in line.”

An outsourced IT company will have someone on the team able to respond immediately either remotely or on-site if the situation demands.

6. Going Beyond to Keep Your Business

Outsourced IT contractors have a vested interest in exceeding client expectations.

They know they’re not the only game in town. So they will work tirelessly, often going the extra mile, to ensure they win your business year after year. They want to be so good that you’ll recommend them to other businesses and colleagues. Advertising is great but nothing beats an enthusiastic referral. A salaried employee may not have the same motivation to provide this superior customer service.

7. Lets You Do What You Do

Outsourcing your IT needs frees up resources so you can concentrate on your core competencies and, most importantly, growing your business. While technology might be the backbone of your operation, it’s probably not your thing. Outsourcing this function to a team of experts means one less worry on the table and more peace of mind.

IT Services Frees Up Resources

Outsourcing Your IT Department Makes Sense

With all these factors considered, the answer becomes clear—outsourcing IT functions to an experienced and reputable Managed Service Provider makes sense for a lot of businesses.

But take your time and do your research when choosing which MSP.

Besides a company selling you products and services, look for a company that is interested in building a relationship. If all goes well, you’ll be in this together for the long haul, so the relationship is crucial.

Remember, you’re doing this because you’re not a techie, so you don’t want someone who is going to throw a bunch of techie jargon at you. You want someone who says, “We understand your issues and we are going to solve them. Leave it to us”. Someone who keeps you in the loop at a high level but keeps the nuts and bolts of it off your plate.

If outsourcing is the route you’re considering taking, there’s a Nerd who would love to help you out! Contact us now to start the conversation.