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The Benefits of IT Outsourcing Outweigh Its Risks


Businesses which have resisted outsourcing their IT services cite what appear to be sound reasons for their hesitation, everything from concerns about potential downtime to diminished data security to worries that the managing company can’t possibly comprehend the unique nature of their system to the same extent as their in-house CIO. Respectfully, these concerns have less to do with outsourcing, itself, than with which company is chosen for outsourcing.

Experienced IT management companies are able to address each of these concerns, and sometimes even provide written guarantees of their ability to do so. These companies can provide a full-service IT solution and create an effective partnership to ensure maximum benefits. And those benefits can be transformative for businesses, large and small. These include, but are not limited to, the following 4:

  • Cost Savings and Increased Capital: companies which outsource their IT services save money. Companies need to look at the bigger picture of the hidden costs of IT systems downtime when considering Outsourced/Managed IT. This is actually simple math. Managing IT services in-house means a perpetual, fixed cost of an employee that reduces cash which could be directed at other business objectives and priorities, those which can generate additional, net revenues.
  • Reduction in Pricing: the savings achieved through outsourcing a company’s IT services allow those companies to charge less for their products and services. Lower prices translates into increased sales, which further add to the bottom line.
  • Getting Back to Basics: anyone who has managed in-house IT services knows that, when problems arise, solving those problems drains precious human resources, not only of IT staff, but of those to whom those staff report. That forces key management personnel to abandon other priorities in order to solve the IT problem of the moment. Outsourcing IT services removes these distractions, allowing senior management to focus on those objectives which form the core of the company’s business.
  • Economies of Scale and Modernization: new and emerging IT technologies can revolutionize the way companies do business, but they’re expensive, so much so that especially small businesses are forced to settle for aging systems which compromise their competitive edge. IT management companies, on the other hand, because they can acquire the latest technologies for their entire client base, can leverage economies of scale and pass those savings along to individual clients, keeping their IT services state-of-the-art.

Businesses which have been reluctant to outsource their IT services should do the research necessary to identify those managed service providers who have the experience and the reputation to provide a high quality service. This arrangement should be looked at as a mutually beneficial business relationship between both parties.