IT outsourcing is a big decision for your business. But you’re not alone in exploring the option. According to Clutch, 83% of small businesses will maintain or increase their spend on outsourced business services in 2023 and of the companies surveyed 22% are looking for IT services. But why?
Well, right out of the gate it comes down to cost savings. According to Indeed, the average salary in the U.S for an IT Support Specialist is around $50,000. For many small businesses, it is more cost effective to outsource that position. The additional benefits of outsourcing include increased time savings and for upstarts increased time to market.
But there are some downsides too. If you’re outsourcing outside of your country or in different time zones there can be challenges. Let’s take a deeper look at the benefits, potential downsides, and the various types of outsourcing models available to your business.
What is IT Outsourcing?
You hear that IT Outsourcing can reduce costs and increase time savings but what exactly is IT Outsourcing? When you’re looking to outsource your business’s IT, you’re hiring a third party to deliver IT services and infrastructure solutions. These external service providers are known as MSPs.
When working with an MSP, your company hands over specific tasks and other IT related projects to the managed service provider. This can include infrastructure, directing strategy, maintenance, running the service desk and other functions. The MSP can manage your entire environment or work with someone internally on your team to co-manage the IT environment.
Often solutions may include SaaS (software as a service) and other cloud solutions. Ultimately, the outsourcing of tasks will be determined by your company’s overall goals and what you want to achieve. Regardless of whether you choose managed or co-managed, your business will see benefits.
What are the Benefits of Outsourced IT Support?
As technology continues to develop, it is not required to have resources in-house. When outsourcing IT, your company will experience a reduction in costs, an increase in time savings, and uninterrupted workflow plus you will bring industry experts onto your in-house team. This opens a world of opportunities for your business, so let’s break each opportunity down.
Cost Control: as mentioned above, hiring an in-house tech team can be expensive. Outsourcing IT allows a business to obtain high-quality work at a low cost.
Time Savings: managers can delegate tasks to their MSP, so that in-house teams can focus on internal projects needing priority. For upstarts and new businesses, this helps decrease time to market.
Industry Experts: if you decide to go co-managed or fully managed with your IT Outsourcing, you’re bringing a level of expertise to your team that you would not have access to otherwise.
Outsourcing your IT gives your business a competitive advantage but there can be some challenges.
IT Outsourcing Risks, and Ways to Avoid Them
When looking to outsource IT, there are a few items that you’ll want to pay attention to like where the MSP is located, what is their history, and do they have a solid security plan in place. Hiring a reliable vendor will ensure the success of your long-term goals.
Depending on the outsourcing model you choose to go with, the MSP you hire could be out of state, in a different time zone, and maybe even in a totally different country. So, you will want to take into consideration time differences and potential language barriers.
Look at the vendor’s website to get a better understanding of the industries and markets they serve. Does the MSP have a client list or portfolio of clients you can view. How long has the MSP been in business. If this information is not listed on the MSP’s website, it should be available during initial conversations.
Communication and security concerns should be addressed right from the start. When you outsource your IT, you are presenting sensitive information to a third party. Make sure the vendor includes language within the Master Service Agreement (MSA) that addresses security concerns and that there is a Non-Disclosure Agreement (NDA) to sign.
3 Common IT Outsourcing Models
IT Outsourcing can be broken down into three models. It’s important to understand how these models work, so that you can make the best decision for your business. Each model has advantages and disadvantages. The three most common modes are:
Onshore
The vendor you hire are professionals located in your city or nearby.
Nearshore
The vendor you hire are professionals in neighboring countries or within the same time zone.
Offshore
The vendor you hire are professionals located in another country.
The ONE 2 ONE Difference
ONE 2 ONE has been in business for over 20 years serving businesses within Distribution, Healthcare, Manufacturing, Not for Profit and Government services. We offer both managed and co-managed solutions and are happy to discuss these solutions with you and your team.
Located in Lancaster, PA, our entire team is based in-house. When your team needs help and they reach out, they will talk to a live person located here in Lancaster.
ONE 2 ONE has worked hard to create a core process that benefits your business goals. It begins with a self-guided assessment to analyze potential security gaps within your current IT environment. All the solutions we offer are built upon this security gap assessment and are meant to address and solve those gaps.
Connect with a representative today and experience the ONE 2 ONE difference!