What is IT Outsourcing? Your Complete Guide to Outsourcing IT Services

Posted on July 28, 2021

Topics: IT Infrastructure

What is IT Outsourcing? Your Complete Guide to Outsourcing IT Services

Did you know that 8 in 10 small businesses (80 percent) plan to outsource business functions in 2021 (Clutch), and that figure is only expected to grow even further as we move into the future.

There’s a good reason for that. Outsourcing helps organizations lower costs, increase efficiencies, save time, access core skills and resources that would be expensive to employ in-house and increase business flexibility.

When it comes to IT services, outsourcing is an incredibly valuable solution for both SME and large organizations. Leveraging IT outsourcing can help your business cut IT costs, improve your access to IT expertise and lead to a greater competitive advantage. 

Not sure what IT outsourcing actually means for your business? Don’t worry, in this blog we’re going to define what IT outsourcing is, as well as look at some of the pros and cons of outsourcing your IT support and strategy to a third-party expert. 

We hope it helps. Let’s get started with what IT outsourcing is.

What is IT outsourcing?

IT outsourcing is the practice of hiring third-party information technology experts to help your organization achieve its unique technology requirements. That could be anything from IT services, IT support, software-as-a-service (SaaS), cloud outsourcing, CTO outsourcing or IT solutions.

By outsourcing IT, your business will be able to more effectively implement IT-enabled business processes, infrastructure solutions, IT strategies and software solutions to better achieve business outcomes.

You can work with an outsourced IT expert to design your entire IT strategy, or you can work with them to focus on a specific IT function such as data recovery and network management, implementing a cloud phone system, ensuring your cybersecurity strategy is up to scratch, software as a service and so much more.

These vendors could be individual IT professionals, consulting firms or full-service providers. 

The advantages and disadvantages of IT outsourcing

As with any investment that your business makes, there are both advantages and disadvantages to IT outsourcing. It’s down to your organization to make the correct decision that will ensure you realize optimum ROI from your investment.

To help you, we’ve created a quick list of the pros and cons of IT outsourcing.

What are the pros of IT outsourcing?

Reduced costs and improved efficiencies: Outsourced IT providers will take the time to do an audit of your current technologies and how you use them. They’ll then recommend a new strategy based around optimizing your current technologies and implementing new ones - this will result in significant cost savings and efficiency gains across your organization. 

Access to expertise: Employing a team of IT specialists in-house is expensive, and typically a luxury reserved for large organizations. By outsourcing your IT to a third-party, you can gain access to that experience and knowledge at a fraction of the price. 

Save time to focus on the big picture: As a business owner your time is valuable. While your IT strategy is crucial to the success of your organization, it’s not representative of the big picture. Outsourcing enables your company to leave operational details to an outside expert, while you use your time to focus on the core competencies of your business. That's how you’ll achieve true business growth.

What are the cons of IT outsourcing?

Loss of control: Some businesses may argue that outsourcing your IT to a third-party vendor will result in having less control over in-house IT support and service levels. In reality, this is only a concern for a small number of enterprise organizations who have the resources to employ large and highly-skilled IT teams in-house.

Lack of in-house expertise: It’s important not to work with an IT provider that doesn’t take the time to carefully consider your company’s unique requirements. You don’t want out-of-the-box solutions implemented into your organization in the hope that they work. Look for an outsourced IT expert who takes the time to really evaluate what your company needs to improve efficiencies, reduce costs and grow and then clearly lays out a plan to make that happen.

Are you interested in learning more about IT outsourcing, and the pros and cons it brings your business? Get in touch with OT Group today. We provide IT services in Ontario, from Toronto and the GTA area up to Ottawa.


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