October 16, 2022
Matthew Kirkland

What is the business case for outsourcing IT?

What is the business case for outsourcing IT

In these days of tight budgets and constant pressure to reduce expenses, the question “Is outsourcing IT worth it?” is common. The answer, like so many things in life, is it depends.

There are many factors to consider when outsourcing your IT needs, but in general, several benefits can make it a wise choice. Let’s take a look at some of the key reasons businesses choose to outsource their IT.

Business Case For Outsourcing IT: Cost savings

  • Labor Costs

The primary cost savings will come from your labor costs, typically the most expensive line on any profit and loss statement. When you outsource IT, you’re only responsible for paying the provider for their services – not for the salaries and benefits of in-house staff.

At the time of writing this article, full-service remote support, security & monitoring are averaged at between $100-150 per “endpoint” or computer per month. A typical office of 20 computers could receive fully managed IT support, including monitoring, IT security & unlimited 24/7 remote support for $2-$3,000 per month. This is a significant discount over the $5,000+ you would pay for a single salaried in-house IT person.

  • Hardware & Software Costs

Larger IT providers can work on the economies of scale, passing on discounts for both computer-related hardware & software. On top of this, if your business is security-focused and organized, you can have the IT company setup new computers per your internal policies and have the computer configured and the necessary software already installed and licensed upon delivery.

  • Opportunity Cost

The opportunity cost is harder to pin but can be as important as the other two types of costs. When you outsource IT, you free up your staff to focus on core business functions and strategic initiatives.

Your in-house staff will no longer be bogged down by routine maintenance tasks or managing complex hardware and software upgrades. They can instead focus on developing new products or services, expanding into new markets, and improving customer service.

Business Case For Outsourcing IT: Increased Efficiency & Productivity

One of the biggest benefits of outsourcing your IT needs is increased efficiency and productivity.

  • Immediate Support

Managed IT service providers often have a dedicated team of IT personnel in either a Network Operations Center (NOC), a Security Operations Center (SOC), or sometimes both. These teams are dedicated to providing support and monitoring for their clients around the clock.

This allows businesses to take advantage of large support teams 24 hours a day, 7 days a week, 365 days a year, so whether one person on your team needs immediate support or your entire network goes down, you have the peace of mind of knowing that someone is always there to help.

  • Infrastructure Planning & Management

Slow computers, regular downtime, and other IT issues can cost businesses money in lost productivity.

A good IT provider will work with you to assess your current infrastructure and recommend improvements that will boost efficiency and help avoid future problems.

  • Virtual CIO Services

For businesses without a dedicated in-house IT staff, this can be an invaluable service. The provider will work with you to develop an IT roadmap customized for your business. This can include anything from developing an IT budget to implementing new technologies to improving your network security.

By having a clear IT roadmap, you can avoid the common pitfall of making ad hoc IT decisions that can end up being costly in the long run.

Business Case For Outsourcing IT: Expertise

When you outsource your IT needs, you have access to a team of highly-trained and experienced IT professionals.

This can be especially beneficial for small businesses who may not have the budget to hire a team of full-time in-house IT staff.

Business Case For Outsourcing IT: Scalability

One of the biggest advantages of outsourcing is the ability to scale up or down depending on business requirements. An external provider can easily accommodate fluctuations in demand without having to hire or lay off staff.

Business Case For Outsourcing IT: Strategic Planning & Implementation

Outsourcing your IT can provide access to strategic planning and implementation resources that may be out of reach for a smaller in-house team.

The provider’s staff will have experience working with companies similar to yours and can offer best practices for integrating technology into your business. They can also help you develop a roadmap for future projects and budget accordingly.

This can be a huge benefit for businesses that are looking to grow and need to make sure their technology infrastructure can support that growth.

Business Case For Outsourcing IT: Improved security

When sensitive data is housed internally, security becomes a top priority. But by outsourcing your IT infrastructure and operations to a secure third party provider, you can rest assured that your data is safe and secure – something that’s not always guaranteed when dealing with internal employees.

Business Case For Outsourcing IT: Risk Mitigation & Business Continuity

Outsourcing IT can help mitigate risk and ensure business continuity in several ways.

When you have a third-party provider responsible for your IT needs, they are also motivated to keep your systems up and running. Their livelihood depends on it! This gives them a vested interest in ensuring your systems are as secure and robust as possible.

In the event of a major disaster, a managed service provider will have a plan in place to get your systems up and running again as quickly as possible. This can minimize the impact of an outage on your business and help you avoid the potentially devastating consequences of extended downtime.

Ultimately, outsourcing your IT needs can benefit your business in terms of cost savings, scalability, expertise, and risk mitigation. It frees up resources for you to focus on growing your business and leaves the complicated tech stuff to the professionals. So why not give it a try? Your business (and wallet) will thank you.

Nerds On Site Business IT Solutions can help your business plan for your technology future. Contact us today.

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