Understanding the types of IT outsourcing pros and cons businesses face is essential.
From gaining a competitive advantage in the marketplace to reliable technology management delivered by certified IT experts, the advantages of IT outsourcing are widespread. Also equally important to know would be the disadvantages of IT outsourcing.
Remember, not all managed service providers (MSP) are suitable matches. Differences in company culture, management processes, or a lack of scalable IT services often create friction which can lead to the cancellation of services – or worse, vendor lock-ins.
In this article, we’ll take a closer look at outsourcing IT services pros and cons and how they may be applicable to organizations with growing IT needs.
Advantages of IT Outsourcing
There are numerous IT outsourcing pros and cons. For instance, small businesses looking to access the latest technology may lack the capability or capacity to implement the hardware and software required. On the other side, large enterprises may look to offload specific IT tasks to unburden their internal staff.
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Additional advantages of IT outsourcing include:
Better Control IT Costs
Many growing businesses outsource their IT needs because it’s a cost-effective way to control labor costs and save money. Additionally, using managed IT services is a great way to stay protected against emergency IT repairs, which can require significant upfront investments.
Improve Productivity and Efficiency
Outsourcing IT means having professionals who are capable of designing, implementing, and deploying the latest technologies. From workforce automation to improved network efficiency, businesses often lean on MSPs when looking to streamline their processes.
Enhance Business Focus
One of the best IT outsourcing pros and cons would be how businesses can focus more on driving growth while technology experts maximize their uptime through the management of some or all of their IT responsibilities.
Strengthen Network Security
Staying protected against data breaches means ramping up security measures with IT experts who understand business needs. From anti-malware implementation, cloud security services, and much more.
Close IT Knowledge and Skill Gaps
One of the main outsourcing IT pros and cons to know would be how IT outsourcing deepens an organization’s talent pool. From troubleshooting complex IT questions to implementing remote data centers, outsourcing information technology processes can ensure you have IT experts along every step of the way.
Reduce Regulatory Compliance Risks
Preventing data loss, theft, corruption, or misuse by identifying and remediating security risks to maintain regulatory compliance is critical. Businesses that fail to comply with data compliance standards may face fines upwards of $50,000 per violation.
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Disadvantages of IT Outsourcing
There are more advantages to IT outsourcing than there are disadvantages. While hidden costs, outdated technology skills, and the possibility of weak management are concerns that must be weighed, there are various other disadvantages of IT outsourcing, including:
Loss of Control
Entrusting core services, such as essential functions, can be difficult for businesses to commit to, especially if that organization does not manage tasks to similar company standards.
Confidentiality and Security
Trusting data to secondary parties carries innate risks. For example, should a data breach occur to your MSP, your data is also likely to suffer. Although, it’s important to emphasize that most managed providers are well-protected.
Impact on Employee Morale
Depending on the extent of outsourcing required, staff morale may be impacted as no one likes to think their job is at risk, which may also hinder performance.
Lack of a Service Levels Commitment
Many managed service providers have a service level agreement, or SLA. The SLA outlines the level of service you’ll receive from the provider. It provides details about the metrics they use to measure their services and performance, and any applicable penalties if the service levels are not maintained.
Lack of Contract Flexibility
Rigid service contracts that lack flexibility and customization are considerable disadvantages of outsourcing. That is why the managed services provider you choose is essential.
Find the Right Technology Partner By Weighing IT Outsourcing Pros and Cons
Weighing outsourcing IT services pros and cons can help you decide whether IT outsourcing is right for you.
From improving workflow processes, protecting yourself from risks, and to managing some or all of your technology, there’s much to consider. With more than 750 500 IT experts on staff and over 30 years of experience, we retain many of our clients, and some for as many as for an average of 20 years.
Our team has multiple IT certifications and capabilities to assist across the IT landscape and we are among the few leading managed service providers who offer flexible, customizable contracts and a 100% satisfaction guarantee.
To discover how to manage your technology the Buchanan way, reach out to us today for more information.