For many business owners, IT outsourcing is a comprehensive solution to the otherwise time-consuming job of managing technical operations. Managed services add value and improve operations for a wide range business types by offering additional data security, disaster recovery, and cloud services.
By outsourcing your IT needs, you can save money, access IT expertise, and protect your data.
According to Sia Partners, 87% of organizations are allocating more work to the cloud—a trend heavily influenced by the surge in remote work over the last couple of years. If you’re dealing with the strain of adapting to this increasingly common way of doing work, outsourcing your technical needs is your one-stop solution.
In this article, you’ll learn about IT outsourcing, why the trend is booming, and what IT services can do for your business.
What Are IT Outsourcing Services?
When you ask, “What is IT outsourcing?” you should know that you contract outsourcing IT services, though delivery and location of services may vary. There are a few different outsourcing models:
- Overseas: Though there is an appeal in cheaper IT outsources from overseas, this option also comes with a potential language barrier and time difference.
- Nearshoring: You can also outsource your IT services to a neighboring country.
- Onshoring: For many business owners, however, onshoring is the best option for outsourcing projects. You get an in-country, experienced team that understands your business's legal necessities and regulatory ins-and-outs.
Most often, businesses bring on an IT outsourcing company to help with web hosting, technical support and helpdesk, database management, infrastructure, and telecommunications.
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Why Outsourcing IT Services Is Booming
With the boom in IT outsourcing in 2022 and demand only slated to increase through 2023, it’s important to understand how the outsourcing services trend might also impact your business. The beginning of the pandemic and working from home has brought a downside—a significant increase in cybercrime and data breaches.
Project managers understand how critically important it is to make company information accessible to the necessary parties, but accessibility also comes with security concerns. One solution IT outsourcing companies are implementing is a shift to the cloud. The most common cloud computing services you’ll encounter from your outsourcing partner are:
- Software as a Service (SaaS): SaaS supports accessing applications over the internet, and software is provided on a subscription basis.
- Infrastructure as a Service (IaaS): IaaS provides storage, computing, and networking services as you need them.
- Platform as a Service (PaaS): PaaS offers an environment for software development and deployment in the cloud, with additional support for developing applications and system integration.
Along with the benefits offered by cloud computing, cybersecurity has become a top priority for many businesses—from small businesses to large ventures. Your outsourcing department actively invests in tools like VPNs and multi-factor authentication. Your MSP may also shift to cloud computing to scale offerings with the needs of your business.
How IT Outsourcing Benefits Your Business
The benefits of outsourcing an IT department can be summarized into three points: cost reduction, access to expertise, and around-the-clock staffing. An in-house team, though with its own benefits, only works from 9-5, but hackers don’t wait until you’re on the clock. If you decide to outsource your IT, it’s also much easier to scale other imperative resources, such as storage.
Broken down, IT projects outsourcing improves business processes by providing:
- Easy access to knowledgeable staff: If your systems crash at 2 in the morning, you know help is just a phone call away.
- Relief so you can focus on your job: Juggling concerns over IT complicates your day-to-day work life. When you work with an outsourcing vendor, you’re free to use that time to focus on your business.
- Cost-stable IT outsourcing service: With most managed services providers (MSP) offering a set monthly fee, you know what you’re paying for (as detailed in your service level agreement). You’re also saved the hassle of recruiting and hiring in-house information technology staff.
- Improved productivity: You’ll have better uptime and a more educated workforce that understands what they can do to protect company data.
- Risk management: When you choose to work with an MSP, you also have access to disaster backup and recovery.
You should also know that the cost of IT outsourcing is broken down by how many users and how many devices need to be managed.
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