Outsourcing is the allocation of a specific task or business process to an external service provider.
There are many reasons why businesses may feel the need to outsource aspects of their business process. A popular misunderstanding by most SMEs is the belief that all elements required to run a business effectively should be done in-house. This is not the case, you might consider outsourcing your HR teams to handle health and safety training or anything else within their remit. Smaller businesses (and one-man bands) could also outsource their IT needs to professionals to reduce on the costs involved with hiring another employee.
Outsourcing came about when businesses recognised that they either weren’t able to handle all aspects of their business process internally or they couldn’t justify the cost of hiring a full-time employee.
While deciding to outsource elements of your business is no easy decision, however, it comes with a lot of benefits for you and your customers.
This post will highlight some of the benefits of outsourcing your business’s IT needs.
Benefits of outsourcing your IT needs
The main benefit of outsourcing your IT and IT support needs is time. Any business owner knows how valuable time is, outsourcing allows you to focus on your core business practices while knowing that experienced professionals are handling the rest. Other benefits include:
There’s a lot of costs related to properly running an IT department in-house. From costs relating to the hiring and training of in-house employees to the costs of equipment and software.
Compliance and security
The technicalities of operating an IT department includes complying with the regulations set in place by the government to protect consumer information. For example, if you accept online payment, you’ll also need to adopt the PCI security standards. Or if you collect customer information you’ll need to ensure that you’re complying with the GDPR laws that were set in place in 2018.
There’re risks associated with every business. From various government regulations to the uncertainty of financial conditions, anything can happen. Outsourcing offers you an out, by providing that service they’re assuming the risks that come with it. As they’re experienced, they’re also much better at deciding how to avoid risks.
Hiring experienced professionals mean they’ll be up-to-date on the latest trends and practices within their industry. They’re able to apply this to your business which will give you an edge over your competition.
Outsourcing allows you to focus on increasing efficiency and competitiveness. Trying to cover all aspects involved with running your business takes a lot of time. The costs and time involved with researching, developing or implementing systems can be transferred to providing better service to your customers.
Outsourcing services specialise in a specific field and service clients from a variety of backgrounds. It’s very likely that they’d have some experience with every issue you might face in the course of running your business. The same cannot be said for in-house IT professionals. While they’ll have experience with IT, their experience would be limited to their niche.
A reoccurring problem faced by SMEs is their limited access to tools and resources. IT systems, tools and resources are an investment for any business. However, smaller businesses may struggle to justify these costs. This is where outsourcing can help. Their knowledge and access to the latest technology and tools for managing and supporting your IT needs will leave you with time to focus on growing your business.
Written by Ibrahim Kareem from Croner