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Top 10 Benefits of Using Managed Services for IT Outsourcing

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About 1 in every 3 businesses invest roughly one-third of their revenue in technology spending. While that might not seem like much, for companies that see a fair amount of cash flow, 3% could mean billions of dollars.

We don’t need to tell you why technology is such an important line-item for business owners. The world is rapidly migrating to the internet and consumers expect all experiences to be customized to their needs.

As your company aims to meet those demands through the adoption of technology, the conversation of IT outsourcing will likely come up. Is it beneficial to trust your IT needs to a team of external experts?

We think so and here are 10 reasons why.

1. Lowered Labor Expenses

The most obvious benefit to IT outsourcing is lowering the payroll burden your company faces. The average salaried IT professional makes just under $90,000 per year. Add to that figure the amount you’ll spend on benefits and it becomes clear just how big of a hit your bottom line can take with an in-house team member.

On the other hand, when outsourcing IT, you hire on a team that’s being subsidized by multiple companies. That means lower costs for the same great expertise.

2. Expanded Resources

Managed IT teams are groups of people that collectively work on your account to see to it your needs are taken care of. Compare having a group of external IT professionals executing your tasks versus one in-house professional managing things. Also, consider the fact that hiring that external group is likely cheaper than hiring a single in-house individual.

Long story short, when outsourcing IT, you get more resources for your dollars.

3. Reduced Office Resources

Housing your team is likely one of your largest business expenses. When outsourcing IT, your team of technology professionals will work out of their own office and manage most of your day to day tasks remotely.

That means one less desk, computer and other items you’ll be on the hook to pay for.

4. Removed Burden of Training

One of the reasons why turnover is so expensive is that it takes a while before the employee you bring on starts making an impact on your business. For many roles, training and acclimation to a job could take months if not longer.

External IT professionals are pre-trained when they’re brought onto your account and that training is done at the contractor’s expense, not yours.

5. Scaling Advantages

If you need more IT resources given the rapid expansion of your business, a normal hiring model would dictate needing to go through the drawn-out process of finding new talent, interviewing them and hiring them on. Through IT outsourcing, if you need more resources, all you have to do is call your managed IT services provider and have them allocate more bandwidth to your account.

The same goes for scaling in the opposite direction.

6. Unmatched Perspective

Experience drives people’s ability to quickly solve problems. When you outsource your IT needs to an external team, you’ll have a lot of experience at your fingertips.

Managed It services teams work for several clients that operate across several industries. When your company runs into issues or needs advice, your external team will be able to pull perspective from problems they’ve solved by working with people in similar positions or can get an unconventional perspective from how companies are operating outside of your niche.

That access to information by itself makes hiring an external IT team valuable.

7. Lowered Risk

We live in an age where data is becoming increasingly important and regulations surrounding that data are becoming strict. If your technology solutions were to fail and consumer data were to leak, your company could be on the hook for millions of dollars in damages.

By outsourcing your technology solutions, your business will likely dodge most if not all of that liability.

8. Keeping Your Team Focused on What They Do Best

If you sell shoes, your in-house team should be focused on being the best shoe salespeople they can be. They shouldn’t be focused on sales, legal tasks, computer repair and everything else that goes into running a growing company.

Do your business and culture a favor by keeping your group focused on what they do best and outsourcing important tasks that support your core model.

9. Staying Ahead of the Curve

As new technology enters marketplaces, companies that adopt it fastest will be best positioned to reap benefits. Is your internal IT team up to snuff on all the latest benefits that are happening in commercial technology?

Several external IT teams are.

By tapping into managed IT service’s future-forward expertise, your business will thrive, not lag, when it comes to advancements.

10. A Way to Compete With Bigger Competition

For small to medium-sized business owners, having the resources to employ a massive, full-time IT team isn’t a possibility. Your bigger competition will always have that resource advantage over you.

Hiring a group of subsidized, external processionals levels that playing field and will have you working with resources very similar to companies that far exceed your size.

IT Outsourcing Could Be Your Ace in the Hole

IT outsourcing is becoming increasingly popular among businesses because of all the advantages we’ve just shared. Hopefully, the case we’ve made for working with external IT teams has piqued your interest enough to continue learning about the topic.

If you’d like additional information on how to save money without cutting results in both business and life, consider checking out more of the content we have posted in our frugal-forward blog.

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