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Why Companies Are Choosing to Outsource Their IT Departments

Published by scott on July 10, 2019
Categories
  • Technology News
Tags
outsource it services

Technology is one of the critical drivers of business growth. It has made it easy for businesses to communicate with their clients, simplify their production processes, and market their products effectively in the face of stiff competition. It is for these reasons why businesses are investing in top-notch IT services to ensure that their processes are technology-driven for optimal business performance. 

Businesses, however, are increasingly opting to outsource their IT services rather than hiring IT staff to run their IT departments. Professional IT service providers are contracted to manage the business network, users, services, and devices that are critical to business operations. Such support services ensure that the company’s network is current and the technology can provide seamless operations in all departments and roles with the company. 

IT service providers offer different technical support services to companies, but some of the everyday tasks include; 

  • Network monitoring and management. 
  • Data backup. 
  • Data recovery.
  • Data storage and management. 
  • Systems operation. 
  • Process execution. 

Let’s now take a look at some of the reason why businesses are outsourcing IT services rather than hiring internal staff to run their IT departments.

To Reduce Labor Costs

woman in data center

Hiring and maintaining an IT department is very expensive. IT experts are among the highly remunerated professionals, and as such, businesses need to pay top dollar if they want to have the best Data Administrators or Systems Analysts working for them. Factor in the costs that go towards recruitment such as placing jobs adverts, carrying out interviews and performing background checks and the costs get so high. 

On the other hand, when companies outsource these services to professional IT agencies, they get to enjoy these services at a fraction of the cost. The support company brings the best talent to perform critical IT functions, and the contracting company doesn’t have to pay the expenses that are usually associated with hiring employees such as training, health insurance, employment taxes, and retirement plans.

To Reduce IT Operations Costs

Installing the best IT infrastructure with servers, networks, system security, and other IT components is quite costly. However, when companies outsource IT support systems, they transform such fixed IT costs into variable ones.

data center operations

By paying for what they are using at a particular time, companies can keep their costs low, and this allows them to price their products effectively to appeal to customers.

To Ensure Uninterrupted Flow of Service

Technology keeps evolving with each passing day, and as such, software and hardware management is becoming notably challenging. Companies with in-house IT employees will have to keep training and updating their skills, and this can interrupt the delivery of service within the organization.

computer with code

Professional IT services companies are consistently training their workers, and this way, they can offer innovative business solutions to companies that hire their services. This ensures a continuous flow of business functionality, and this way, businesses gain a competitive advantage over other players in the industry.

To Improve Company Focus

It is not possible or practical for a company or an individual to be a jack of all trades. Those that try to do so find themselves overwhelmed, and this results in a lack of focus and eventually poor performance. It is for this reason why businesses are increasingly outsourcing their IT departments to professionals to ensure that they are not handling many tasks. 

This way, they can focus on critical aspects of their businesses, such as refining their products or improving their customer acquisition strategies and leave IT tasks to the professionals.

To Access Exceptional IT Capabilities

Considering that running an IT department is very expensive, most IT departments are usually understaffed. This often results in poor business performance since the few in-house workers are not able to meet the technical demands of the business. Businesses that outsource information technology tasks to professional IT companies get a higher return on their investment since they can gain from the collective experience of different professionals rather than benefiting from the technical knowledge of just one person. 

IT support services companies always ensure that their workers have the best industry knowledge as well as having the needed certifications to prove their competencies.

To Reduce Risk

Information technology services carry many risks. With companies required to adhere to strict government regulations when deploying IT resources, there is the need for companies to ensure that those running their IT departments understand all the regulations to avoid the stiff penalties that come with non-compliance.

By outsourcing their IT services, the support companies take up most of this risk, and as such, companies can operate in a safe environment. IT support companies understand the security and regulatory issues demanded by the government and other regulatory bodies, and as such, they are better placed to avoid the inherent risks.

To Guarantee Information Security

Companies have much private information that they don’t want their competitors to access, and this is another reason companies choose to outsource their IT departments. IT supports services invest in the best data protection techniques, and as such, they can securely store company data away from prying eyes. 

it security

Businesses that collect client information such as credit card info when offering services should guarantee their customers that their data is safe and partnering with professing IT service providers helps with this. Such support companies minimize the risks associated with handling such vital data, and this helps businesses serve their customers better.

Businesses need technology to thrive in these modern times, and as such, the IT department is one of the most important sectors of any business. Running an IT department, however, is quite costly since the best IT staff, systems, and technologies are not cheap.

Technology is also constantly changing, and as such, in-house workers may find it challenging to keep up with the changes. This article highlights some of the reasons why companies are choosing to outsource their IT departments.

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6 Comments

  1. Thomas Peterson says:
    August 2, 2019 at 10:31 am

    You made a good point that IT companies can help manage the network as well as other things that are crucial for your business. I have been trying to help my brother with his technical issues but that’s been difficult for just myself to do. Maybe I should recommend that he outsources his IT to help him better than I might be able to.

    Reply
  2. MARK J. ANDERSON says:
    October 25, 2019 at 12:52 am

    IT Department is one of the main departments in every business organisation. So, this must be outsourced properly. Thanks guys for sharing this article. This is very informative article.

    Reply
  3. Dylan Peterson says:
    January 8, 2020 at 8:08 am

    I like what you said about outsourcing IT tasks so that you can get access to a variety of professionals. My boss has been telling me about how he wants to make sure that our computer system is working properly in the coming months. I’ll share this information with him so that he can look into his options for outsourcing IT.

    Reply
  4. Tyson Coolidge says:
    February 21, 2020 at 7:39 am

    I like what you said about outsourcing IT so that you don’t have to be a jack of all trades. My boss has been telling me about how he wants to make sure that our company is running efficiently in the coming year. I’ll share this information with him so that he can look into his options for outsourcing IT.

    Reply
  5. Ellie Davis says:
    April 3, 2020 at 10:44 am

    I loved that you mentioned outsourcing your IT support will help you to reduce your labor costs. My husband and I are thinking about how to improve his business efficiency, and we are looking for advice about what to do. I will let him know about the benefits of outsourcing his IT support to help him decide.

    Reply
  6. Joslyn B Peoples says:
    June 6, 2020 at 5:26 am

    A very good and detailed insight on outsourcing. Certainly there are pros and cons when companies outsource their jobs. The ideas shared are also very helpful.

    Reply

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