The Economics of IT Outsourcing:
When Does it Make Sense for Your Business?
IT outsourcing has become one of the popular operations for businesses in the last few years. This is owing to the simple idea that any operation that takes away from the core business objective must be outsourced. On the flip side, outsourcing operations can be expensive and hinder the company’s business too. So, how do you determine if IT outsourcing makes sense for your business? Let us dive right into it.
High IT Expenses
As an organization scales, its IT operations and costs will inevitably increase. If these costs spike to the extent of eating into your revenue and profits, then one must consider outsourcing the operations. Instead of hiring IT employees, training them, managing the equipment, and more, organizations can simply opt for a subscription model from a vendor that can take care of all these operations.
Hindrance to Core Business Goals
If IT is not part of your core business, you must gauge how much the IT operations impact your business goals. IT must be leveraged to accomplish your business goals, but they may be hindered if you try to run all end-to-end IT operations. This is because the workforce would be divided between accomplishing your business goals and running the IT system. By outsourcing the said operations, your teams would be more focused on the core business, which can elevate the business.
Fast Turnaround Times and Niche Requirements
If your company takes up projects that require expertise in niche areas or have a quick turnaround time for the projects, you must consider outsourcing. This is because it will be simpler to hire a third-party vendor who specializes in the respective niche and can quickly finish the project as it would be their primary focus. Furthermore, the outsourcing model will be more beneficial if the work undertaken is a one-time project that doesn’t require post-delivery services.
Lack of Cybersecurity
If your business deals with confidential and sensitive data such as customers’ personal information or more, the data needs protection. Cybersecurity is a business investment in the current scenario, and outsourcing is an apt choice for an organization. You can hand over the cybersecurity responsibility to the experts who would secure your IT infrastructure, prevent malicious attacks, and have an incident response team if a security breach occurs.
These are a few signs that you need to outsource IT operations to a vendor. Besides this, other factors include employees with outdated IT knowledge, the stress of handling IT operations, making the business future-proof, and more. All these align with elevating the business in the present and ensuring its relevance in the future.
Think outsourcing your I.T. support makes sense?
Contact us at support@otoit.com or call us at 520-999-1978 ext. 2 and we will discuss your I.T. needs and help you determine if it makes sense to have internal resources, outsourced support, or a hybrid of both, to address your businesses I.T. needs!