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Top 3 Reasons Why IT Outsourcing Enables Growth

A common question faced by owners of growing businesses is whether to build an internal IT department or to outsource. It’s undoubtedly an important question given how infused technology is in our businesses. From marketing and sales to accounting and administration, every employee of a company relies on computer networks and IT devices to do their job.

Without question, savvy executives need to leverage their sometimes-limited resources to ensure their IT investment is running at full capacity at all times. Furthermore, when technology is used effectively, the playing field is leveled and a small business can match or exceed the product or service offering of its larger competitors.

While we may be biased, we believe that outsourcing your IT management to an IT Managed Service Provider (MSP) is the path to levelling that playing field and maximizing your technology investment.

Here are 3 reasons why…

1. Reduce Costs & Gain Control
Training and maintaining in-house IT staff is costly. At a minimum, annual labor costs for a full-time IT help desk professional is about $50,000 excluding benefits. That amount doesn’t account for the expensive indirect cost of the tools needed to actually do the job, such as security and management software, backup programs, network monitoring software, continuing education, travel, meals, etc. On the other hand, outsourcing IT management to a qualified MSP spreads the cost of best-in-class tools over multiple clients (think economies of scale) and charges the company, at a predictable rate, a fraction of what it would take to build an IT department internally. Additionally, companies only pay for the service they use.

Ordinarily, an in-house IT professional is underutilized when business is slow. Conversely, when business is booming, the company suffers from a burnt-out employee. Outsourcing all or part of the IT function can provide a backstop and balance since it converts over/under-utilized fixed operating costs into a variable expense. This gives greater financial control since IT costs can fluctuate with the business and frees up capital for executives to redirect toward revenue initiatives.

2. Consistent & Dependable…Stress Free & Focused
In its simplest form, a company’s IT infrastructure is just another tool for business. Most employees don’t really care how it works, they just expect it to work. It’s like flipping a light switch. When you flip the switch, you rarely think about how or if it will work, you just expect the light to turn on. In the near-term, recurring IT issues distract employees, lower productivity, and increase frustrations. If issues are left unmanaged, the long-term effects are missed deadlines and sales targets, heightened exposure to cyber threats, and significant business interruption. To avoid the frustration of coffee-toting employees at your desk telling you that the network, internet, or email is down, simple provide them with a consistent and dependable IT platform. A qualified MSP dedicates its time and energy to reducing risk and ensuring your network’s up-time which allows your employees to deliver results instead of excuses. How do you know the decision to outsource is working? When you stop worrying about the IT network and start thinking about growth strategies.

3. Expand Resources & Maximize Human Capital
Do either of these scenarios sound familiar? The poor and unfortunate soul in the office who can get the printer working again is unwittingly dubbed “the IT expert.” The dedicated IT person is assigned several “additional jobs” because the company doesn’t see the value of a full-time IT professional. In either case, the IT needs of the company remain underserved and executives have a half-committed employee doing their “real” job. Companies that outsource, not only gain 24/7 monitoring and fully qualified technicians, they also gain access to preferred pricing and higher quality products through the expanded relationships of the MSP. Distributing the IT workload to an outsourced professional permits your employees to concentrate on achieving goals and hitting deadlines instead of being distracted by upgrading and managing IT infrastructure. Appropriately done, outsourcing IT management maximizes employee investment and positions a company’s resources for growth.

Just like manufacturing equipment, fleet vehicles, or surgical tools, IT networks need specialized monitoring, maintenance, and management. Outsourcing to an MSP reduces costs and increases stability while maximizing resources and employee productivity.

Ready to talk about how a true IT partnership can improve many aspects of your business? Drop us a line at solutions@thetek.com