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Considering IT Outsourcing? Why This Is A Strategic Decision For Business
May 26, 2021 Macy Vonderschmidt

Considering IT Outsourcing? Why This Is A Strategic Decision For Business

Posted in Blog

If your business is considering outsourcing IT management, you are not alone. According to Capitol Counselor, the global IT outsourcing market will be worth $397.6 billion by 2025. The top reason most companies decide to outsource is to save on the overall cost. While that is one of the most impactful pros of choosing to outsource IT, there are several other reasons this can be a strategic decision for your business. 

 

In this week’s White Board Wednesday episode, Mike Cromwell and Brian DeVault discussed the strategic decision of outsourcing IT and the factors to consider.  When a company decides to outsource, it has to be a strategic decision. Here are five benefits to choosing to outsource:

1. Provides Capabilities Otherwise Unavailable

When a business decides to outsource, they are opening up capabilities and skillsets they either do not currently have available on their team or cannot afford to hire someone internally to fulfill the need. Additionally, outsourcing to experts can reduce liabilities when completing non-core-related tasks.

2. Allows Internal Resources To Focus on Core Needs

Another huge advantage to outsourcing IT needs is allowing internal team members to focus where their expertise lies. Liabilities can be increased when internal team members are trying to fill space they are not an expert in. Bringing on an outsource partner, lets internal staff focus on their core responsibilities and delegates non-core-related tasks.

3. Enhances Accountability

When an outsourced partner is brought into the mix, contracts will be signed for the services being offered. This adds a level of accountability for the business and outsourced partner. We have spoken many times about how important documentation is, and this situation is no different. A detailed contract safeguards both parties while increasing accountability for the task. 

4. Reduced Cost

According to Capitol Counselor, 70% of IT companies who outsource list cost as the top reason. Hiring and training in-house staff can be very expensive. Oftentimes, a reliable outsourced partner will save the company money while allowing them to save on overall labor costs.

5. Keep the Company Focused on Core Business Objectives

The internal team is normally focused heavily on the core business objectives, but objectives outside of that scope come up often. Outsourcing non-core business objectives allow the team to excel within their specialty and allows the outsourced team to handle the other objectives efficiently and effectively.

Larger companies are 66% more likely to outsource than small businesses according to Time Doctor, however, 24% of small businesses outsource to increase the efficiency of their business. While small businesses may not outsource at the rate of large businesses, outsourcing as a whole is a rapidly growing industry.

This blog post is part of NETRIO’s weekly Whiteboard Wednesday series. Follow along on Linkedin and YouTube each week as Brian and Mike discuss use cases, new technology, and trends.