Outsourced IT Services: What it means, services outsourced and why

Outsourced IT Services: What it means, services outsourced and why

If you are starting your business, you might be at a loss on which services you need to outsource and the ones to hire an in-house team. Companies outsource many benefits depending on the nature of their products and services.

The business management needs to evaluate its needs and weigh the possibility of hiring an in-house team against hiring a third-party managed service provider. Hiring an in-house team may not be viable for most small and medium businesses. IT professionals have different specialties, and a company will have to employ an IT professional for each role.

In today's competitive business world, where every business wants to stand out, outsourcing IT support offers many advantages. Information technology plays a significant role in modern enterprises, which would be pretty difficult to ignore. By hiring the services of a third-party company, the business runs on the high advantage of providing high-quality services to its clients at a relatively lower cost.

What is outsourced IT support?

Businesses rely on technology to manage all their operations. Businesses that do not have their own IT department or staff and still need IT support. These enterprises can hire the services of an external company to take care of their IT needs. This third-party company is commonly known as a managed service provider. It can provide a wide range of services depending on the needs of the hiring company.

Outsourced IT services go beyond simple repairs to software development, installation and management, data management and monitoring, cybersecurity systems, data recovery,  and other IT needs. The two businesses establish mutually beneficial relationships or partnerships. The services rendered are paid for based on an agreed monthly fee.

Both medium and medium enterprises can immensely benefit from outsourcing IT services. They might not have a sufficient budget for hiring IT staff. Unlike common belief, close to half of all cyberattacks occur to small and medium businesses, which are more vulnerable. These businesses also have limited capacity to prevent these crimes and hardly recover from the effects.

As we will see later in this post, outsourced IT support is advantageous to businesses. It gives them ample time to concentrate on production and other management functions.

Since outsourced IT service providers are there long-term, they will provide your business with efficient systems that are less likely to fail. Unlike break and fix solutions, outsourced services are not paid for monthly, per fix, as long as the contract runs.

IT problems can be costly for businesses and can lead to a standstill in their operations. When not fixed quickly, such issues can slow down production, costing businesses time and money. For this reason, a business needs to identify and hire a reliable IT provider who can effectively take care of their IT needs taking off the stress.

WHAT IT services are outsourced?

Business today outsources different IT functions depending on the nature of their operations. The IT support outsourced by one organization may differ from the other. For this reason, the business needs to work out its needs with the third-party company to ensure they get the services best suited for their needs. In this section, we are going to look at the different IT services business outsource.

We are going to break down the concept of outsourced IT services into two categories:

• infrastructure
• software

Infrastructure

The infrastructure is a system that ensures that all the complex business functions are well outlined, simplified, and for ease of management. It mainly entails outsourcing different IT equipment. Network systems and hardware from an infrastructure provider. This equipment is highly costly, and it would be expensive for SMEs to purchase. Additionally, it requires highly specialized staffing to set up and manage.

Thanks to infrastructure outsourcing, small and medium businesses can enjoy efficient IT services at only a subscription fee. They only pay for the specific services they use. The professional term for this is infrastructure-as-a-service (IaaS). It has recently become a rewarding venture for businesses.

Software

MSPs have highly qualified IT professionals with the capacity to design the best software for your business. These professionals manage and monitor your business systems for possible problems and fix them before they escalate.

Some of the most commonly outsourced IT services include:

Web design and development

The website is a critical factor when it comes to the presence of a business online. It is more so essential for e-commerce businesses. If you plan to start a business, you probably don't have IT staff to design a modern website. For this reason, outsourcing has always been the best option in web design for both start-ups and SMEs. Consequently, you acquire an efficient site that is attractive to clients and also runs smoothly. You can agree that nothing puts off customers like a slow site and pages that won't open.

Besides, you can outsource highly professional web designers who can advise you on the best concepts for site design. Let us face it, from their years of experience, they already know what works and what doesn't in SEO rankings.

Application/software development and management/support

Today, even small businesses need applications. Development of applications is expensive as it takes specialized teams and sufficient time highly. Additionally, every business has a unique brand and requires a different app best suited to its needs. By outsourcing the services of a software development company, the business gets to enjoy high-quality app and software.

In other cases, there are different apps in the market for various purposes which could be helpful in your business. By outsourcing business suites such as MS office 365 and other google apps, companies enjoy their modern business features, frequently updated without hiring developers.

Cloud hosting

Businesses can access information from any location through cloud hosting as long as they are using a compatible device. It has proven rather difficult for companies to have in-house cloud systems. It is because of the cost implication and the speed at which technology is advancing. Besides, using an outdated cloud system could lead to high risks of cyber theft.

SMEs can enjoy cheaper cloud hosting services from a service provider without running the high maintenance and labor costs of buying in-house servers.

Cybersecurity

Online safety is critical in business operations, and cyber attacks have cost businesses and individuals vast sums of money. Enterprises are now outsourcing the services of cybersecurity experts. These specialized professionals monitor the business sites for threats and mitigate them.

Another form of security commonly used is two-factor authentication. This security feature is common in high-risk businesses such as banks and when accessing highly confidential information in an institution. Two-factor authentication requires users to use more than one form of identification to access a site, making it more difficult for unauthorized persons to gain access.

Accounting/bookkeeping

Businesses need proper systems for managing their daily operations, such as inventory and device management. Hiring the services of a managed service provider is one way small and medium businesses ensure the effectiveness and security of their operations. One advantage of this is reduced costs as the company has a clear outline of its needs and needs.

Social media marketing

Social media has brought the world together at the palm of your hand. Every business wants to take advantage of this massive crowd as a potential market for its products. Different social media have become so resourceful that even large companies sell their products online.

Even with everyone going online, businesses need to target the perfect demographics. SMEs might not have the capacity to develop efficient in-house digital marketing teams. For this reason, they need to hire the services of a professional company. By so doing, they can concentrate on selling to a constant flow of customers without the hustle of marketing.

Lead generation

The practice of lead generation is very critical in marketing. It entails coming up with potential customers for specific products and services. Some businesses sell customer leads, while in other cases, a company in need of customized client leads will outsource these services, among others.

Disaster recovery

Loss of data has a significant impact on businesses. Often, data loss occurs through human error, natural disasters, and ransomware attacks. These can lead to the leakage of critical business information to the public destroying the business reputation.

Businesses first safeguard their data against such losses by creating data backup, often through outsourced IT support. These professionals can protect your data from accidental deletion and file corruption. Additionally, they can plan and manage disaster recovery.

Cloud storage is also effective against the loss of data at times of hard drive or server failure. Cloud ensures that this crucial business information is secure and always available when needed.

Security and compliance

One of the primary reasons businesses seek IT support is to ensure safety in reducing risks and evading threats. It can be through specific IT procedures such as routine password reset to enforce organizational policies and procedures. Businesses can also enjoy improved audit practices, firewalls, multi-factor authentication (MFA), and secure cyber configurations through outsourced IT services.

Why would a company outsource their IT support?

Above, we have seen the different services that businesses outsource from MSPs. By outsourcing these services, enterprises rip a wide range of benefits that we will focus on in this section.

Cutting on cost

If you are running a small business, you are probably struggling with financial resources. It does not, however, mean you have to compromise on your IT needs. When you outsource certain services, your business is always running on lower IT costs. You don't need to hire an in-house team of experts. Also, you pay for these services monthly, which is way cheaper than hiring an expert to run repairs whenever you experience a problem.

You might not have the same capacity to get the same equipment and personnel as your competition, which might leave your business at a disadvantage. If you outsource the necessary IT services, your business has the same competitive edge as any others in the industry. It is because you get to enjoy high-quality services at a relatively lower cost.

Many costs come with hiring in-house staff, which a business can cut on through outsourced services. These include needs such as staff benefits and training needs.

Efficient and High quality IT services

MSPs have highly skilled staff in their area of expertise. By hiring their services, you are sure to get consistently high-quality service that comes with customer satisfaction. The business is more productive as you can now focus on running the business without worrying about the possibility of your IT systems failing. Also, with high-quality IT services, your business can maintain a high-quality brand.

It is also important to note that IT professionals are not specialists in all areas of technology. For this reason, it might not be sustainable to create an in-house team with all specialists needed for your business. However, when you outsource IT services, you enjoy high levels of expertise in every aspect of your business which translates to high-quality services.

Businesses that outsource their IT also need constantly enjoy advanced technology, which could not have been otherwise possible. For this reason, companies need to take advantage of the available software in the market, which could help reduce their running costs. It also helps in automating their systems, eliminating the aspect of redundancy speeding up work processes.

Disadvantages of outsourcing IT services

Whenever a business outsources its functions to an external service provider, they risk losing control of the It functions of their business. It is not always a problem as long as the third-party company delivers as expected. However, if the business decides to create an in-house team regaining such control might be a problem.

Also, when the contract term ends, or you terminate it, the business runs the risk of losing confidential information. It is because its data is already in the hands of a third-party company.

Another disadvantage of outsourcing is that the business may lose a level of communication with their clients, leading to customer dissatisfaction. It is more likely to occur if the company outsources digital marketing services.

Where can I outsource my services?

If you are looking to outsource IT services, you have several options, including:

Offshore outsourcing: in this case, you outsource services to a foreign company with a time difference of five to six hours. Companies will consider offshoring due to certain benefits, including more specialized labor, lower costs, time zones, and other economic factors.

Nearshore outsourcing: this form of outsourcing involves companies closer by or with a few hours of time difference. It has the advantage of much better communication, the same culture, and in some cases, language.

Onshore outsourcing: this form of outsourcing involves delegating IT services to a company within the country's borders. 

Multisourcing: it involves sourcing IT services from multiple vendors. Businesses practicing multisourcing seek access to a wider talent pool and diversification of risk.

Many MSPs are offering different IT services, with each of them promising to be the best. All in all, the service provider of choice should first understand your business needs and give you precisely what you need. As you choose your service provider, you need to realize that everyone is out to do business. While you are trying to cut costs, you also risk buying services you don't need.

Here are factors to consider while outsourcing IT services:

• Your budget versus the price they are offering.
• The expertise of the service provider versus your needs.
• The possibility of hiring an in-house team versus outsourcing.
• The risk of loss of governance and control of the IT functions of your business.
• Safety of data and compliance with government regulations
• The availability of the IT support team around the clock.
• The ability of the company to meet the stated deadlines

Conclusion

A modern business can't operate without IT. Unfortunately, not all companies can afford the services of an in-house IT team. Statistics show that 53% of SMB feel ta]hat they are at a disadvantage due to IT costs. However, it doesn't mean such a business should overlook its needs as it can outsource these services from professionals at lower costs. As we saw above, outsourcing IT services comes with a set of benefits, which go beyond the cost implications. It is more so for small business enterprises.

Finally, when hiring the services of an IT service provider, the business needs to keep in mind their needs and the company's ability to meet them.