As technology becomes an inherent part of all businesses, the global market for outsourcing is growing rapidly. According to Statista, the global outsourcing market amounted to $88.9 billion in 2017, up from $45.6 billion in 2000. Today, companies across virtually all industries rely on Managed IT Services Providers (MSPs) and, in this blog, we describe what exactly makes outsourcing so appealing to everyone from small to mid-sized businesses (SMBs) to corporations with offices around the globe.
Many Types of IT Outsourcing
TechTarget defines outsourcing as a business practice in which a company hires another company or an individual to perform tasks that had previously been done by the organization’s own employees.
In practice, outsourcing is a broad term that encompasses everything from offshore or nearshore outsourcing to the thriving segment of onshore outsourcing to cloud computing and its various sub-segments, including Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS).
Benefits of IT Outsourcing
Even though outsourcing can have many different forms, they all share several core benefits that they offer to companies who decide to partner with an MSP instead of maintaining in-house IT staff.
Scalability: We live in the day and age of relentless IT innovation. Many of the same solutions that used to be considered ‘cutting-edge’ just a few years ago are now obsolete and unable to cope with the demands of a modern business. Companies that have invested in such solutions find themselves to be stuck and unable to keep up with their competition.
On the other hand, organizations that have been outsourcing their IT capabilities were able to effortlessly scale up and adapt to varying seasonal demands. Instead of being burdened with legacy technologies, IT outsourcing has allowed forward-thinking companies to leverage state-of-the-art solutions and focus on their core business processes.
Increased productivity: IT outsourcing allows companies to readily gain access to skilled staff, enabling them to maintain a sharp focus on their own goals, instead of spreading themselves thin by needlessly wasting time on staff recruitment, training and management.
Having access to more resources means tasks get completed sooner, and it also means tasks can be assigned to staff with domain-specific expertise. This reality contrasts with the still prevailing idea that outsourcing is only applicable when the stakes are low. When applied thoughtfully, outsourcing, especially in IT, can yield fantastic results and help even the smallest companies compete with established players.
Cost-effectiveness: Hiring outside help when needed instead of maintaining in-house IT staff is virtually always more cost-effective. But even lower cost is arguably not the biggest benefit of outsourcing—predictability is.
With IT outsourcing, companies enjoy greater control of their budget as the costs of partnering with an MSP are predictable and typically without any hidden costs.
IT Outsourcing Considerations
Outsourcing is not without its pitfalls, even though there is not many of them. The most important thing is to know what to outsource and when. Typically, when current employees are no longer able to manage the day-to-day business without missing deadlines, it may be time to consider IT outsourcing.
Outsourcing also may not be the best option for tight-knit organizations with just a few employees and local ambitions.
Finally, offshore outsourcing often happens across several time zones, potentially making communication difficult. For this reason, many companies turn to nearshore or onshore outsourcing as excellent alternatives.
The Vology Difference
IT outsourcing is an important resource for everyone from startups to established corporations. It offers several important benefits, including improved scalability, increased productivity and better cost-savings. Vology provides access to 2,200 fully vetted field technicians nationwide to our numerous customers, and we would be happy to help you benefit from our transformative solutions as well.
Contact us today to discover why Vology is ranked as a top 25 Managed IT Services Provider in the world on the 2017 MSPmentor 501 list.