Seven Reasons Why Businesses are Outsourcing their IT

By Aaron Bianchetta| October 17, 2018

It’s a fact: Technology is transforming business faster and more pervasively than any other time in history, and businesses are feeling the pressure. Today’s companies are re-thinking their business processes and organizational structure - as well as their sourcing, pricing, and revenue models - to adapt to an increasingly digital world.
So it’s not surprising that 92% of businesses we surveyed for our 2018 Tech Insights Report are outsourcing certain aspects of their IT. But is there more to outsourcing than bottom line cost savings? What are the other reasons companies choose to outsource their IT?

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Seven Reasons Companies Are Outsourcing IT

1) Internal IT roles are difficult to staff:
According to a 2018 CareerBuilder survey, 45% of hiring managers say they are unable to fill their much-needed positions due to the scarcity of qualified talent. You need people who can manage your IT needs now, and not worry about training and turnover. Outsourcing can be a feasible alternative, both for the interim and long-term.

2) Existing internal resources need support:
On the flipside, you may have a solid internal IT team, but they may be too tied up with changing passwords and fixing printers to focus on high-priority projects. Outsourcing provides your existing team with the resources they need to focus on these projects rather than being distracted by level-1 issues.

3) Gain access to exceptional capabilities:
Alternatively, it may be virtually impossible for your existing team to try to learn the very advanced skills that may take them longer than someone who is already a subject matter expert. When you outsource for subject matter expertise, you benefit from the collective experience of a team of IT professionals, allowing your internal team to focus on what they do best while getting the assistance they need, when they need it.

4) Control operational costs:
Outsourcing eliminates the costs associated with additional employee hiring, including recruiting, onboarding, training, and benefits. It can also convert fixed IT costs into variable costs and allow you to budget more efficiently.

5) Reduce Risk:
Professional outsourced IT providers work with multiple clients and have seen it all. They need to keep up on new technologies, threats and best practices and typically have extensive industry knowledge, especially with security and compliance issues. They specialize in deciding how to avoid risk - having this resource at your fingertips when you need it can significantly reduce your risk of making a wrong decision internally.

6) Minimize Threats:
The average global cost of cybercrime increased by over 27% in 2017, with organizations spending nearly 23% more on cybercrime costs than the previous year. These statistics are only expected to increase in the coming years. Monitoring and mitigating these threats is now a full-time job – and more companies are outsourcing to a team of IT professionals who have the expertise, on-going training and certifications to deal with ever-evolving cyber threats.

7) Make capital funds available:
Businesses can utilize their capital funds on investments that are directly related to their customers and core business by outsourcing non-core business functions. Your CFO will be happy about that.

Outsourcing has become a pillar of Modern IT Management, allowing businesses to manage the ever-evolving change, risk, and opportunities they face.

If you’d like to explore if IT outsourcing is right for your organization, contact us and a member of our Managed Services team will be in touch.

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