IT Outsourcing Advantages and Disadvantages

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Small businesses need IT support. Some are satisfied with a small internal IT team, while others have complex needs that extend beyond their small team’s abilities. 

Companies that fall into the latter category often reap the benefits of IT outsourcing by hiring a managed service provider.

This trend does not just apply to small to medium-sized businesses. Many enterprises also choose to outsource their IT. In fact, statistics show that 66% of larger American companies outsource their IT services. 

Why do so many organizations trust an outsourced IT service? Satisfying complex needs that a small internal team can’t meet is one reason, but it’s not the only one. 

While beneficial to some, outsourcing IT may not be right for every business owner. There are some risks involved as well.

This article will examine some key IT outsourcing advantages and disadvantages. With this information, you can make an informed decision about whether IT outsourcing is right for your business.

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4 Advantages of Outsourcing IT Services

1. Save Money

One of the most frequently cited benefits of IT outsourcing is better cost savings. Most managed service contracts are more affordable than regular labor costs. Furthermore, consultants already know how to perform their tasks, saving you training costs.

Some service providers may also offer Software-as-a-Service (SaaS). Getting your software tools from these providers is more cost-effective than buying them independently. Providers may be able to offer you discounts through partnerships.

2. Access to a Larger Talent Pool

Outsourcing is a great way to fill skill gaps. Additionally, you can gain new insights into how you can make any business function more effective. More hands and new ideas can boost productivity and increase product quality.

If you opt for outsourced professional services, it is easy to bring in additional labour on a project-to-project basis. This process is much simpler than hiring short-term or part-time staff members.

3. Save Time

By outsourcing team members, you don’t need to replace your internal ones. You can let your outsourced team perform time-consuming maintenance tasks while your internal employees focus on core business functions.

You can choose which functions to outsource. For example, if you would rather keep data security internal, your outsourced team can focus on end-user support. This way, your internal IT team has more time to focus on improving your data security.

4. Improve Cybersecurity

If you don’t have the time or resources to invest in cybersecurity, your company is at risk. Outsourcing cybersecurity functions can help you reduce your security risk if you’re unable to do it independently. 

Many providers can also perform disaster recovery tasks. Therefore, your organization can speed up your threat responses.

However, there are pros and cons to outsourcing cybersecurity. External people can improve functions and bring new knowledge to the table. Yet, you are still trusting a third party with your data. For this reason, choosing a trustworthy service provider is crucial.

IT Outsourcing Advantages and Disadvantages

4 Disadvantages of Outsourcing IT Services

1. Less Control

Not all business owners are comfortable letting someone else run their operations. Service providers usually have their own way of doing things and business owners are reasonably concerned about maintaining their standards.

Consult potential providers about their processes to ensure they align with yours. You can look at testimonials or past projects to gain reassurance that your provider has high standards. Regular meetings also help you see how your provider is running projects.

2. Lack of Physical Presence

In recent years, businesses have learned that there are advantages and disadvantages to remote workers. Being open to remote work increases your talent pool. Yet, it can reduce communication and sometimes decrease punctuality.

Most outsourced IT teams are remote, with some exceptions. In either case, establishing an effective communication strategy with your provider is vital. A good provider will have regular check-ins to ensure you’re still satisfied with their service.

3. Lack of Knowledge About Your Company Culture

Consultants work for the service provider that you hired. As such, they won’t know your company’s culture the way an internal employee does. This can cause miscommunication issues or misaligned practices.

Choosing a provider that gives you a single point of contact can help mitigate this issue. Your single contact will get to know your company inside and out. This also lets them predict your future needs which improves their long-term service.

4. Staff Morale

Many American workers are afraid that outsourcing will cost them their jobs. This fear is usually unfounded, yet it persists. Therefore, your internal staff could experience decreased morale if they know you outsource operations.

Still, you should be transparent about your outsourcing practices. Keeping it secretive will only increase your staff’s fears. Instead, have an open conversation with your team about how they can work alongside your managed services provider. 

Experience the Benefits of IT Outsourcing With KDIT

Now that you’ve weighed the IT outsourcing pros and cons, you may have decided that you want to outsource some of your IT functions. First, you should determine your needs. Then, you need to choose the right managed services provider.

KDIT offers tailored service packages that can fit any need or budget. We can customize your package so you can experience all the benefits of IT outsourcing services with fewer risks. Our convenient month-to-month contracts give you the freedom to scale up or down if necessary.

We offer transparent Service Level Agreements and a single point of contact for every client. This ensures you always receive predictable services from a partner who understands your business.

Contact us today to schedule a consultation with our team and see if KDIT is the right managed services provider for you.

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