Calculating the costs and advantages of outsourcing your IT
IT outsourcing means hiring a third-party managed services provider (MSP) to take over corporate IT support and maintenance. There are two options when it comes to outsourcing. The first option is to delegate all your IT tasks to the MSP in a fully-managed scenario. The second option is the MSP works hand in hand with your internal IT team in a co-managed arrangement. You also get to choose the services to outsource, which could be systems maintenance, cybersecurity, software/web development, cloud management, and so on.
Outsourcing IT services is a popular trend across all commercial industries. The global managed services market is currently worth $242.9 billion and expected to reach $354.8 billion by 2026. More and more companies are quickly discovering the value and benefits of IT outsourcing in a business world shaped by digital prowess.
Let’s discuss the key advantages of IT outsourcing against the traditional in-house IT support model to understand the business value in hiring an MSP.
Cost savings
The top reason that most organizations outsource IT services is to cut operational overheads. But how much can you save by outsourcing your IT services? There is no definite answer here, although some analysts do quote figures that go up to 50 percent. But the cost savings depend on several factors, including the organization’s size, IT footprint, and the scope of outsourced services. Here are the different ways that IT outsourcing minimizes IT expenses:
Cuts labor costs
Working with an MSP is much cheaper than hiring an internal IT team. According to PayScale, the average base salary of an IT professional is $62,571 per year. And this figure doesn’t include hiring and onboarding costs or other essential employee accommodation expenses. On the other hand, an MSP will only charge you a few hundred dollars every month at a fixed rate. Plus, you only pay for the services you need.
Reduces your IT investments
Through IT advisory services, an MSP will help to optimize your IT performance while minimizing the required resources and dependencies. For instance, the MSP can help you identify and eliminate unnecessary redundancies and performance bottlenecks, streamlining your IT and maximizing its ROI in the process. Also, most MSPs give you exclusive access to cost-saving resources, such as free or discounted cloud services, security tools, data backup, and process automation systems.
Boosts employee productivity
Managed services guarantee 100 percent IT uptime. That means your workplace never suffers IT-related delays or downtime. Remember, your business loses money every single minute that the employees can’t work. Also, outsourcing IT services frees your staff to focus on more important tasks instead of worrying or trying to resolve technical issues.
Other advantages of outsourcing IT
A slimmer budget is not the only benefit you get from outsourcing your IT. Here are more ways that outsourcing trumps in-house IT support.
- Access to highly skilled and experienced IT personnel
- Easily scalable and flexible services
- Narrows your business focus
- 24/7 customer support and fast response time
- On-demand services
- Reduces IT risks
- Support for security compliance
- Builds fruitful business relationships
- Provides IT road-mapping insights and support
Compared to in-house IT support, outsourcing is the more cost-efficient, reliable, convenient, and goal-oriented option. The good thing is, it doesn’t take much to outsource your IT – no heavy investment, long onboarding processes, or expensive training. All you have to do is sign up for a managed subscription.
But make sure to sign up with the right managed partner, one with your company’s best interests at heart. KME is that partner. We’ve been in the IT business since 1993, helping businesses big and small realize their IT’s value by keeping data systems healthy, secure, and efficient. Contact us to learn more about the solutions we have in store for your business.
