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Did you know that the global information technology outsourcing (ITO) segment might grow from $395 billion in 2022 to $587 billion by 2027? Statista said it could achieve a compound annual growth rate (CAGR) of 8.26%.
The numbers do not lie. IT support outsourcing is a viable solution for optimizing IT operations. An IT outsourcing partner establishes a robust IT department for your business to ensure day-to-day operations.
How do you know when it is time to outsource your IT services? Keep reading to find out.
When To Outsource Your IT Services
More companies rely on front- and back-office outsourcing. They hire and work with third-party service providers to experience several potential benefits. But before you contact just any provider to jump at this opportunity, let us cover the basics.
First, what is an outsourced IT provider? It is an external vendor dedicated to overseeing your IT activities. You have three options for how you receive service:
- Break/Fix Model. Your third-party IT technicians fix your software or hardware systems only when necessary.
- IT Outsourcing. You outsource certain IT functions (such as help desk support, technical support, and network management) to a third-party vendor.
- Managed Services. You hire a managed service provider (MSP) with a dedicated technical staff to remotely handle all your IT operations.
With these descriptions for service fresh in your mind, we can then ask: when is outsourcing right for your business?
It is time to outsource your IT services when you experience any of the situations listed below.
1. Your IT Negatively Impacts Your Business
Companies rely on IT functions to ensure their operations are up and running. But some IT departments have outdated technologies and lack technical experts. When systems crash and no professionals can promptly attend to them, the whole operation is affected.
An MSP has a dedicated IT team that maintains your IT infrastructure and assists your end users remotely. It streamlines your IT operations and improves your business performance. With robust IT, your company is more efficient, productive, and capable of providing quality goods or services.
2. You Lack IT Professionals and Experts
Nearly one-fourth of small businesses outsource work to experts. According to Clutch, expertise is a valuable commodity in business. In particular, IT functions require technical expertise.
It is time to outsource your IT services if you lack professionals and experts. A reliable MSP conducts a thorough recruitment process and hires people with IT backgrounds. It trains contractors to handle technical issues, so they can resolve even the most complex end-user concerns.
3. You Have No Training Programs and Regular Updates
To keep up with evolving IT trends and business needs, you must provide your in-house IT team with training programs and regular updates. This is how your team upgrades their technical skills and keeps staff in the loop regarding changes and new processes.
If you fall short on this point, note this outsourced IT trend: work with an MSP. Such a provider holds a flexible, adaptable, and growing team. Not only does it train your employees, but it also guarantees regular development for its own IT professionals.
4. You Want To Undergo Digital Transformation
Did you know that global digital transformation spending will reach almost $3 trillion by 2025? It might expand at a 16.4% CAGR. Many companies have undergone rapid digital transformation to meet operational objectives for business functions such as IT support.
You might want to consider outsourcing if you cannot undergo digital transformation due to limited or old systems or if the cost is prohibitive. IT business process outsourcing (BPO) vendors invest in the latest technologies to meet their clients’ needs. Working with an MSP gives you access to these advanced IT resources at less cost to yourself.
5. Your Network Systems Are Vulnerable to Cyberattacks
Cybersecurity has become a growing concern throughout all levels and types of businesses. According to Betanews, cybercriminals can infiltrate more than 90% of businesses. Passwords, malware, phishing, man-in-the-middle, and denial of service (DOS) are examples of cyberattacks.
If your network systems are vulnerable to online attacks, it is time to outsource your IT services. Most MSPs make cybersecurity their top priority through robust technology and security measures. You can be sure that outsourcing to a third-party vendor will not put your business at risk. Indeed, it might even be safer because MSPs must stay current with best cybersecurity practices if they want to remain successful in business.
6. You Must Ensure Regulatory Compliance
Businesses across various industries must meet regulatory compliance requirements. Let us take the banking, financial services, insurance (BFSI) industry and healthcare sector as examples. Non-compliance with regulations leads to hefty fines, legal consequences, and business shutdowns in certain cases.
Regulatory compliance is also critical to IT operations. That is why many companies from different sectors outsource tech solutions. They want to ensure they are always on top of their network security and data privacy.
7. You Have High IT Employee Turnover
Job site Indeed.com recognizes the IT sector as one of the highest-paying industries. IT professionals have lucrative jobs that are in high demand nowadays. Moving from one business to another is easy for them. Thus, the IT employee turnover rate in many companies is relatively high.
Hiring IT professionals is one thing; keeping them is another. If you experience high IT employee turnover, it is time to outsource your IT services. Let your MSP find and keep good employees so that your company can build a strong IT team of your own that can vastly expand its abilities by working with the team that is directly employed by your MSP.
8. You Have High IT Expenditures
Establishing and maintaining an IT department is costly. You need to build your IT infrastructure and invest in new technologies. You also have to hire and train professionals, pay their salaries and continuing education fees and pay for the cost of running the department.
Here is the good news: outsourcing can potentially reduce your operating costs. But before you do that make sure to check your prospects’ outsourcing costs and pricing structures. This ensures you pick an affordable MSP that suits your business and helps you save money in the long run.
9. You Have Poor IT Performance
Most big companies have in-house IT departments. But some of these units face operational challenges, thus resulting in poor IT performance. It is time to outsource your IT services if you want to achieve efficient and effective technical support.
Many companies shifted to IT outsourcing with cloud-based and managed services during the pandemic. The trend continues. The global expenditure for managed services will make up 18% of enterprises’ IT budgets by 2023. This clearly show that companies deem IT outsourcing effective for improving IT operations.
10. You Must Focus on Your Core Operations
IT support provides employees with the technological resources required for day-to-day operations. But it is not the top priority for most companies unless they run an IT or tech business. The problem is that most IT activity requires undivided focus and attention.
Neglecting your critical IT department to prioritize your other core operations affects your entire organization. IT outsourcing enables you to delegate your IT tasks to a reliable MSP so that you can focus on your core competencies. You can rest assured that your contracted provider takes care of your IT needs.
11. You Need To Optimize Your IT Operations
As mentioned, IT optimization is important because technology, technical skills, and business needs change quickly. You must update your resources, train your staff, and meet your operational needs. If you do not scale your IT operations, you might compromise your productivity and be left behind in the competition.
IT outsourcing is a viable means for optimizing your IT operations at a low cost. SpiceWorks Ziff Davis (SWZD) found the top reasons IT budgets go up (which also means that IT operations get better):
- Upgrading outdated IT infrastructure (51%)
- Prioritizing IT projects (45%)
- Enabling employee growth (43%)
- Enhancing security (41%)
- Beating inflation (40%)
- Supporting remote staff (35%)
- Increasing revenue (34%)
- Modifying operations (31%)
- Ensuring regulatory compliance (22%)
- Addressing currency fluctuations (18%)
- Combating security breaches (15%)
- Dealing with corporate tax cuts (11%)
If these key drivers seem overwhelming for your staff to consistently perform, it is time to outsource your IT services. Partner with a reliable third-party service provider as one of your outsourced IT solutions. Your contracted MSP will help you stay on top of your IT operations.
12. You Plan To Scale and Grow Your Business
Poor IT operations have a negative impact on your entire organization. However, a robust IT department is instrumental to your overall success. So if you plan to scale and grow your business, consider outsourcing. The right MSP can help your company thrive and succeed.
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If it is time to outsource your IT services, here at Unity Communications, we offer highly reliable yet affordable managed IT services. Our services include remote technical support, departments that work across all channels, a dedicated help desk, and more. We have an expert team of IT professionals who will help meet your operational needs.
Get in touch with us today to see how we can help!
How To Choose a Managed Service Provider (MSP)
Now, you know when it is time to outsource your IT services. If you encounter one or some of the instances above, you would be wise to start looking for an MSP.
Almost 50% of companies outsource IT functions to free up time and focus on other core operations. The right MSP does more than that. It helps optimize your IT operation and leads you and your business to success.
So when picking an MSP for your IT support, perform the following:
- Validate the BPO track record. Check your prospects’ credentials, from business licensing and certifications to awards and recognition. This helps you identify those with outsourcing experience and technical expertise.
- Consider industry experience and specialization. You want to work with a BPO service provider with an IT background. The longer they’ve been offering IT services and the more specialized they are in this niche, the better.
- Check the BPO cost and pricing model. Outsourcing helps save up to 70% of operating expenses, so check the BPO costs to take advantage of this opportunity. While you are at it, consider your prospects’ pricing structures and see whether they fit your budget. Remember that the goal is to save money over the long term.
- Factor in service offerings. IT functions have a vast scope of work. Troubleshooting, hardware deployment, software updates, and network management are some examples of services. Thus, identify your IT needs and choose an MSP that meets them.
- Consider the workforce, technology, and resources. Narrow your MSP prospects by choosing well-qualified IT professionals and experts. Choose those with the newest technology such as artificial intelligence (AI) ability, automation, and cloud computing. Lastly, opt for those with state-of-the-art facilities and available resources.
- Examine network security and data privacy. Outsourcing does make your business vulnerable to cyberattacks because you work with an external vendor. So whether you outsource data entry services or IT support, consider your prospects’ security measures and privacy policies. You want to safeguard your business from potential risks and damage as much as possible.
- Examine the work culture and business practices. You have your core values, philosophies, and ideals as a business. So look for an MSP whose work culture and traditions align with yours. If not, instruct them about your business objectives and strategies and set critical metrics for them to follow.
- Put a high premium on reputation. Check what former customers and clients have to say. Their feedback speaks volumes about the service provider’s credibility and competence. Remember: reputation is everything.
- Review the service-level agreement (SLA). The SLA defines your relationships with your hired MSP. It includes your business goals, key metrics, work scope, duties and responsibilities, and breach of contract. Whether employing front- or back-office outsourcing services, establish an SLA to protect both parties.
The Bottom Line
In the contemporary business environment, information technology plays a pivotal role. It addresses a company’s IT requirements to uphold seamless operations. Thus, it’s imperative to build a robust IT department.
In case of a shortage of technical expertise and resources, outsourcing becomes a viable option. Engaging with a Managed Service Provider (MSP) grants access to proficient personnel and cutting-edge technology. Entrusting your IT needs to a thoroughly vetted external vendor ensures your end users receive efficient and effective technical support.
Before committing to outsourcing, it’s essential to discern when it’s the right time to do so. Reflect on the 12 scenarios outlined above to guide your decision-making process for the benefit of your business.
