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Cutting Costs By Outsourcing IT

While the severity of the current situation may change depending on who you speak to, it seems that everyone is in agreement that we’re in the midst of a global recession. For consumers and businesses alike, this means cutting costs. For some expenses, this means eliminating them entirely. However, there are certain things that you simply must have, which means you need to find a way to cut that cost down without sacrificing quality.

A business needs to have IT support. It’s an absolute requirement, especially in an age where cyberattacks are more frequent and more devastating than ever. Fortunately, there is a sure-fire, readily available solution for lowering IT costs while still getting top-notch service: outsourcing. The expected Return on Investment in cost reductions and increased productivity hovers around 30%. Let’s explore some of the reasons why.

Outsourcing IT not only delivers cost-efficiency but also offers expertise and experience. As another source mentions, ‘Most qualified virtual CIOs have run a business and have experience as a project manager.’ Their diverse experience, combined with an ‘outsider’s perspective,’ allows them to offer solutions that an in-house CIO might overlook. Outsourcing ensures that you ‘get the technology backing your organization needs to operate seamlessly.

No Extra Hours

If your company is hit with a cyberattack or you’re simply experiencing internal issues with your system, your IT department might need extra hours depending on the severity of the problem. These can easily add up cost-wise, especially if your professionals are pulling in significant wages. Hours can skyrocket, which can lead to overtime, and maybe even double-time. A drawn-out IT emergency can really wreak havoc on the budget.

If you’re outsourcing IT, you’re generally paying a flat, recurring fee to keep techs on retainer. Your IT budget is going to stay the same through problems big and small. This means that if you do run into that nightmare situation that takes days to resolve, it’s not going to affect how much you’re paying for the service.


Free up Employee Time

This falls under the same umbrella of time management. Outsourcing anything means that you’re taking something off of the backs of your employees. In smaller companies, employees often fill multiple roles, so your IT professionals might have other responsibilities to attend to when not protecting your infrastructure. While this jack-of-all-trades philosophy can cut costs on its own, it also means that when an employee is performing one task, another task isn’t getting done.

By outsourcing IT, that frees up your staff to focus on other issues, potentially ones that are more important in the long-run. That 30% ROI mentioned above isn’t just about the money you can save by outsourcing, but also the increased profits that stem from a more effective workforce. (ABR)


Zero Onboarding, Training, or Software Costs

Any employer understands the costs associated with hiring a new employee. You have to budget for onboarding, training, and any other expenses associated with the actual act of hiring. On top of that, you need to account for bonuses, insurance, and anything else you might offer your employees. To put it simply, employees are expensive, regardless of wages and salaries.

If you outsource, however, you don’t have to foot the bill for any of this. It’s not your responsibility to train an outsourced technician. That’s a large part of the appeal of outsourcing. On top of that, you’re certainly not giving them bonuses, vacations, or insurance of any sort. This all falls on the service provider and is covered in their fee.

Another big cost that’s often forgotten is that of IT software. The world of information technology is always evolving, which means that you’re constantly upgrading software to stay current. After all, you can’t fight modern-day cyber threats with yesterday’s software. Not only does the cutting-edge software carry a heavy cost, but each significant upgrade means more training.

If you hire an outside service provider, this is another responsibility that falls to them. Not only do they cover those costs, but if they’re dedicated IT professionals, this means that they eat, sleep, and breathe information technology. It’s in their best interest to stay completely up-to-date, so not only is it another responsibility off your shoulders, but you’re also getting IT support at its most effective. (Executech)

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