Statistics show that 24% of small businesses are leveraging outsourcing. Large companies outsource at an even greater rate and are 66% more likely to outsource functions than smaller enterprises.
One of the most common functions to outsource is. Outsourced IT support has a variety of valuable benefits. Including cost reduction, access to cutting-edge solutions and talent, enhanced security, and more.
However, there are also a few potential downsides to outsourced IT support.
Before you hire the first managed services provider you find in the Southern California area, it’s essential to know the pros and cons associated with IT support Los Angeles based companies so you can avoid any potential pitfalls.
Continue reading to discover the benefits and risks of IT outsourcing.
Pros of Outsourced Tech Support
By nature, IT is a complex function to manage. As processes become increasingly digital companies don’t have the luxury of being able to make do with poorly functioning IT.
IT isn’t a core operation for most businesses. However, outdated or problematic systems can wreak havoc with companies’ productivity, customer service, security, and bottom line.
By using and outsource technical support company, businesses can ensure that their IT processes are always humming. A reliable provider can guarantee that systems are always up-to-date, fully functioning, and secure.
Besides this, IT outsourcing can also relieve companies of a lot of the burdens that come with managing IT in-house.
Here are some of the specific payoffs this can have.
Reduced IT Costs
One of the very attractive benefits of outsourcing IT is reduced costs. This might sound counterintuitive, as having something professionally handled usually costs more.
However, outsourcing IT allows companies to enjoy various reductions on in-house IT costs. So much so that cost-cutting is the number one reason for outsourcing IT for 87% of businesses.
Outsourcing IT enables you to swap out staff-related overheads and hidden costs for a fixed, monthly cost. Every time you hire a new IT staff member this triggers an increase in overheads and payroll expenses, including things like:
- Office space and equipment
- Employee taxes and unemployment insurance
- Payroll costs
- Benefits
- Paid time off
- Training
- Overtime
Besides this, managing IT in-house can also come with unforeseen costs and capital outlays.
With outsourced IT, you can exchange sudden, unpredictable IT costs for a monthly cost that’s fixed and easy to budget for.
Lastly, you also won’t need to worry about depreciating IT assets. Their cost will be recorded as an expense rather than asset expenditure.
Less Capital Outlay
IT systems can require a fair amount of capital to put in place and upgrade. Because of this, a lot of businesses end up running on outdated or underpowered systems.
If you opt for outsourced IT, the capital outlays for upgrades will be rolled into your monthly cost. This makes them more affordable and ensures that your organization is never relying on an outdated system purely because of a lack of budget for upgrades.
Easier Access to World-Class Capabilities and Expertise
Another impactful benefit of outsourcing IT is that companies can access world-class capabilities and top talent.
Research shows that 87% of organizations are already suffering the effects of the national talent shortage. IT personnel are particularly in demand, and finding the right talent can be tough.
Small businesses have an especially hard time attracting skilled IT personnel. Because of this, a lack of talent is one of the key IT challenges small businesses face.
With outsourced IT, you can tap into a pool of expertise and IT talent. To remain competitive, IT outsourcing companies have to stay up-to-date on the latest industry developments. Otherwise, they’ll go out of business.
What’s more, a team of experts is far stronger than one skilled professional in a bubble. By combining knowledge and skillsets, a good managed IT services provider is usually capable of accomplishing better results than an in-house IT department.
Managed IT providers work with various businesses in a variety of industries. They can draw on their experience from other organizations to implement tailored solutions and capabilities your IT department might not have been able to.
Better Security
One of the most valuable benefits of outsourcing IT is that can result in better business IT services and security. In today’s age, cyber and data security is of paramount importance for any business.
Security breaches can cost businesses hundreds of thousands of dollars and can even result in business closure. If they involve sensitive customer or employee data, you could also face legal repercussions.
IT outsourcing companies make it their business to stay on top of the latest security threats so they can protect their clients’ systems. They are also versed in working with companies on covering often-forgotten bases, such as employee passwords, devices, and 2-factor authentication.
Most good IT outsourcing companies also offer 24/7 monitoring and support. Here at Bestructured, our round-the-clock monitoring and outsourced IT support service is included in your monthly package.
We monitor your systems at all hours for suspicious activity or signs of instruction. If an alert goes off, we can address it immediately.
Besides continuously monitoring your systems, part of an outsourced IT company’s role is making sure you have a comprehensive data backup and recovery plan in place.
If you don’t have a data backup plan in place, this is one of the signs you need IT support
IT Outsourcing Helps You Focus on Core Operations
Along with protecting your systems and data, IT outsourcing also allows you increased focus on core operations.
If you partner with an outsourced IT provider that provides a standout service, you can leave most of the running of your systems to them. This saves you time and mental energy. Instead of having to continuously address IT issues, you can dedicate more of your focus to revenue-generating operations.
Should an issue arise in your system, all that needs to happen is a phone call to your outsourced IT provider.
Easier Scaling
One of the famous benefits of outsourcing is that it facilitates easier scaling. This is particularly true for outsourced IT.
Scaling IT can be a huge headache. IT hardware and software aren’t cheap, and growing your system alongside your business can start to feel like a full-time job. What’s more, if you don’t have the right expertise on board, you can quickly run into compatibility issues and application siloing.
IT outsourcing offers businesses a way out of the IT scaling nightmare. An experienced outsourced IT provider will be able to make the scaling experience virtually seamless for you. As your demand increases, you can simply move up to a large package with your provider and they’ll take care of the rest.
Less Downtime and More Productivity
Outsourcing IT can also result in less downtime and heightened productivity for your business.
Downtime has become mind-bogglingly expensive these days. The average cost hovers around $5,600 per minute for large organizations.
If your business operates on the break/fix IT model, then you’re guaranteed to run into downtime.
Outsourced IT providers rarely work on this old maintenance model. Instead, most practice proactive maintenance through remote monitoring. As soon as there is a warning sign of failure, a good outsourced IT provider will jump into action to remedy the problem before it results in downtime.
In the rare instance when an issue does cause an outage, all you have to do is contact your provider. If your provider offers 24/7 monitoring and support, they should be available at all times to implement a fix.
Here at Be Structured, there is always a technician available for emergencies, day or night.
Potential Cons of IT Outsourcing
Although IT outsourcing does have a range of valuable benefits, there are some cons to watch out for as well.
In most cases, the drawbacks of outsourced IT stem from incompetent providers rather than IT outsourcing as a whole.
Currently, it’s estimated that there are more than 40,000 MSPs in the US, and not all of these operate to high standards.
To protect yourself from the potential IT outsourcing drawbacks, make sure you take time vetting and selecting a provider. This will help you avoid the cons we have listed below.
Less Control
One of the barriers to outsourced IT adoption is reduced control. When outsourcing IT, businesses have to hand over core services to an outside team of staff to handle. If issues aren’t dealt with correctly, it can be incredibly frustrating for management and employees.
If problems are cropping up and your outsourced IT provider isn’t addressing them promptly, it can feel like your hands are cut off.
Fortunately, today’s technology is sophisticated enough for IT outsourcing companies to be able to deliver the same quality of service as an onsite technician, or even better. If your provider is not doing this, it’s time you let them go and took your business elsewhere.
Low-Quality IT and Customer Service
Good outsourced IT providers employ experienced staff and install sound infrastructure. However, there are also lots of fly-by-night, poorly operated providers who cut corners and skimp on customer service.
These types of providers typically employ “copy-paste” IT solutions for their clients. Blanket solutions take the least effort, and can even result in higher profit margins for the provider.
However, these types of standardized IT solutions don’t usually serve customer needs very well. Every industry and business is different and requires different combinations of infrastructure and software solutions.
We believe that IT solutions should tie in directly with organizations’ goals and business objectives. Instead of bending your processes to fit your IT function, your IT function should be tailored to facilitate business success.
We approach every business we work with as a unique entity with unique requirements. We also have extensive experience providing industry-specific IT support.
Slow Communication
Shifting your IT function from in-house to outsourced can result in communication delays if you choose the wrong provider. Providers that aren’t focused on client satisfaction can be slow to respond to communications and requests.
The slower an outsourced IT provider takes to respond to you, the more services will be affected. This can impact productivity and make you wish you never started outsourcing IT.
The best way to protect yourself from providers like this is to evaluate their communication quality and response times before you engage them. If a potential provider is slow in their responses, this is a sure red flag.
Potential Security Risks
Although IT outsourcing can dramatically improve security, it can also erode it in the wrong hands.
Outsourced IT providers that lack professionalism could endanger your system. If a provider doesn’t have strong security in place or isn’t up to speed on the latest vulnerabilities—this could put you at serious risk.
For instance, if you utilize a remote data center for BDR, and the data center loses your information in a crash or breach, this could be a disaster.
The best way to make sure your security isn’t weakened through IT outsourcing is to choose a provider who specializes in security.
We understand how critical water-tight security is to any business. This is why we also offer managed security services alongside managed IT.
Impacted Morale
Depending on the extent to which you outsource IT functions in your business, this can also have an impact on employee morale. IT employees might feel like their jobs are being threatened or that they’re being undermined. This can impact their productivity and motivation.
Ensure that you choose a provider who treats everyone with courtesy and respect, including your existing IT staff.
Are You Thinking of Leveraging Outsourced IT?
IT outsourcing can save you money, free up time and focus for core operations, improve security, reduce downtime, and more. However, you have to choose the right provider. Otherwise, you might open yourself up to a host of issues, such as data loss and slow response times.
You might also get landed with solutions that aren’t tailored to your needs and end up complicating processes rather than optimizing them.
Are you looking for an outsourced IT provider you can trust? One that will truly cater to your needs and tend to your security?
Be Structured Technology Group is an industry-leading MSP with a core focus on security and tailored solutions. Contact us today to discuss your needs.
