5 Key Reasons for Outsourcing IT Services
In order to be competitive in this global economy, companies need to have a sharp focus on their business. This is no secret, however many companies get sidetracked or hit speed bumps related to the technology that runs their business. As a result, more organizations are leveraging their service providers for most, if not all of their technology services.
Last year, international research firm Vanson Bourne conducted a survey among 550 IT decision makers from key industries, including finance, media and entertainment, retail, healthcare & software on trends in IT outsourcing. The survey concluded that several reasons will drive enterprises to outsource nearly 70 percent of their IT infrastructure by 2018.
Here are five key reasons for outsourcing IT services:
1. Outsourcing Is Cost-effective
Cost reduction or containment is the principle reason companies outsource IT functions. IT service providers have economies of scale. Their cost per seat or license is typically less than what it would cost a company to do the same work internally. Companies often do not have to carry the same overhead in terms of staff and equipment this results in a lower overhead.
2. Improved and Wider Skillset
Outsourcing allows your company to tap into the collective knowledge that your IT service provider has accumulated over time and with many customers. Many providers pull staff from Fortune 500 companies where they were completely focused on one function such as Cisco Router Administration, Exchange Administration or SQL Report Writing. Most companies are not big enough to carry these specialty skills in-house, they must carry general IT skills to handle the day to day variety of tasks.
3. Reduce Risk
IT Service providers have fault tolerant systems, system redundancy and more specialized staff to reduce risk of systems failure. In addition they typically have a better understanding of the latest technology trends. These traits allow them to provide a more efficient and tested solution. This, in turn, allows your company to stay the course and not waste time implementing unproven or short lived technology solutions. Remember Vista?
4. Better Support
IT service providers have dedicated staff and systems monitoring your systems and data. Often they will discover and fix a problem before you are aware of it. Many companies today are reliant on in-house IT staff that may be sleeping or just not available at times. This is a huge risk to business continuity. The support given by Tier 1 Service Providers is particularly helpful for companies around the clock operations or with global offices. They guarantee your team has help when they need it and systems are up.
5. Reduced Staffing Risk
Let’s face it, many companies take a huge risk when hiring IT Staff. Most companies struggle with merely interviewing IT staff. In addition many states make it difficult to terminate employees after 90 days on the job. Some new hires provide adequate service and skills when superior skills were needed. This causes companies to stay in the slow lane until the situation works itself out. Outsourcing IT takes away that risk as companies are not carrying the staffing burden. You can also negotiate flexible contracts that allow you to move to another company if you are not 100% satisfied.
Outsourcing IT will be on the rise in the next several years more than ever. Companies no longer communicate over T-1 lines with a simple router. Data and bandwidth requirements are increasing every year. The need to scale quickly and ensure systems and data are online 24/7, redundant and backed up are some of the factors driving this move to outsourcing.
CPI Solutions can help your company make the proper analysis and decision if you are thinking about outsourcing some of your IT operations.