What is IT outsourcing?
IT outsourcing is the hiring of an external company to manage an organization’s technology infrastructure, such as their network, hardware, software, and user support. Typically, this service is delivered by a company known as an MSP (managed services provider), who contracts to multiple clients in a specific area.
With the average salary for an IT professional in the United States at $60,000, hiring an in-house IT team can be a costly endeavor — especially considering their need for constant retraining to stay current with technology developments. By comparison, an MSP is responsible for its team’s upskilling. They will be available 365 days a year, providing top-quality expertise at a fixed monthly rate and leaving their clients with no nasty surprises.
When is it relevant to outsource IT services?
Small- to medium-sized businesses (SMBs) often have budget and HR limitations that make IT outsourcing the preferable choice. New companies, in particular, will benefit from keeping their core focus on running the business and leaving IT worries to a third party.
Beyond cost savings, your business can benefit from IT outsourcing if your internal team is not providing optimal service. Maybe the team is simply too small to provide around-the-clock support. Or maybe they can handle regular operational support but lack the capabilities to onboard new technologies or execute long-term projects. Many small businesses find they receive superior service after dissolving their internal team and switching to an MSP.
However, IT outsourcing is not just for small businesses. Larger enterprises can also benefit from IT outsourcing, especially in the “new normal” remote work environment that is rapidly replacing the traditional office model.
As more and more employees work from home, data services are going cloud-based, reducing the need for internal IT staff. MSPs with extensive experience in cloud-based servers and remote-work infrastructure can provide mid-sized and large organizations with optimized service at a lower cost.
5 types of IT services to outsource
Managed IT Services Providers usually have a wide range of packages available for small and mid-sized businesses, from basic tech support up to a fully inclusive infrastructure management solution. Here are some typical IT outsourcing services:
1. Help desk/end user support
If you have a small team that uses minimal hardware, you may only need a help desk, or end user support services. Some SMBs also opt for a simple break/fix agreement where each service delivery or job is billed individually. A help desk or some similar form of end user support is the bare minimum that businesses require and is usually included as part of all broader MSP packages
IT Infrastructure refers to all the various hardware and software components in an organization’s technology systems. Outsourcing infrastructure can save you a lot of time, money, and hassle. An Infrastructure-as-a-Service (IaaS) solution can provide all your fundamental IT requirements — servers, storage, networking, and operating software — without you having to purchase any hardware or software or pay costly installation and maintenance fees.
3. Cloud services
With remote working now the status quo, small businesses are increasingly finding the need for cloud services. MSPs can quickly provide access to a wealth of cloud-hosted services like file servers, VPNs, backups, and disaster recovery.
With cybercrime on the rise, cloud-hosted services can often provide far superior cybersecurity than locally hosted infrastructure. The built-in network security, firewalls, and VPN services take the risk and complexity out of remote working.
4. Business management and consulting
Proper IT business management can be very expensive if done in house, especially for small businesses that can’t afford a CIO (Chief Information Officer). An established MSP should offer a range of business management services that can give your company a highly professional image at a fraction of the traditional cost. Everything from email and messaging solutions to IT consulting can be outsourced to a skilled third-party provider.
For small-business IT consulting, outsourcing is the most efficient way to get all the information you need without unnecessarily high costs. The best MSPs offer a virtual CIO service, giving you on-demand access to professional IT advice without the high costs of filling the role internally.
5. Software and applications
Managing software licenses and subscriptions can rack up the costs, especially if you don’t know exactly what you need. An experienced MSP can formulate an affordable, comprehensive software package for your organization that aligns with your needs and provides an excellent return on investment (ROI). Beyond software licensing, many IT outsourcing providers also offer software and web development services, mobile app development, and eCommerce solutions.
How can small businesses benefit from outsourced IT?
For a small business, outsourcing IT services rather than managing them in-house means they can benefit from the latest technologies and dedicated support while having more time to focus on their core business processes.
The ROI for IT outsourcing is often higher than that for hiring an internal team. This is due to several factors, including low or zero hardware costs, more efficient software subscription management, and access to highly experienced service delivery agents who resolve issues quickly or prevent them in the first place.
With an MSP, you get an experienced IT team and a company that benefits from economies of scale, shared fixed costs, and extensive knowledge of the latest technologies, upgrades, and security procedures. Furthermore, your cloud services will get round-the-clock attention, ensuring no web server downtime or business interruptions.
Start outsourcing IT for your SMB today
More and more businesses are choosing IT outsourcing to take advantage of the growing list of benefits. With remote work becoming the new standard and cloud services improving by the day, there’s never been a better time to join the IT outsourcing trend.
An MSP can provide your small or mid-sized business with a tailored solution that incorporates as many or as few services as you require. They can also help you determine what those services are. This highly flexible business model means you can focus funds where they’re needed most without wasting critical resources.
If you already have a solid in-house IT team, a co-managed solution from an MSP can work with them to help fill any gaps and optimize your business strategy.
The Ubisec solution
As one of CRN’s top 500 managed services providers, Ubisec Systems is at the cutting edge of IT outsourcing in North America. Over the last 15 years, we’ve developed a reputation for delivering quality solutions that help grow and optimize businesses across California.
Our wide range of IT outsourcing solutions includes IT managed services, cloud services, IT consulting, and a co-managed service that works to augment your existing team.
Get in touch with UBISEC today if you would like to receive a quote for managing your IT infrastructure, services, or strategy.