The Advantages & Disadvantages of Outsourcing IT Services

The Advantages & Disadvantages of Outsourcing IT Services

Nov 23, 2021

Small businesses and larger companies alike rely on technology 24/7 to operate, and there will always be a cost to keep it running efficiently. The benefits of IT outsourcing allow companies to outsource their technology needs, enabling cost reduction and streamlining of operations.

IT outsourcing has advantages and disadvantages, but it is standard practice regardless of industry. It’s estimated that nearly 50% of businesses outsource some or all of their IT functions. So, should you?

Business owners need to weigh the pros and cons with due diligence before moving forward with any purchase. If you’re considering hiring an MSP, you need to understand what you need (and what to watch out for) to find a good match for your organization.

Is Your Business Being Held Back by a Lack of IT Resources?

Find out how CalTech helps businesses like yours cut costs, enhance capability, and improve user experience.

Learn More

IT Outsourcing Advantages

One of the main benefits of it outsourcing is that it can simplify digital transformation and virtually eliminate the day-to-day hassle of managing IT. However, this is just the tip of the iceberg, and your CFO will need to understand what you are getting with your purchase fully. The advantages of outsourcing also include:

  • Saving Money: Managed IT services can help you keep your information technology within budget by helping you plan your hardware and software purchases for scalability and save you money with virtual infrastructure.
  • Optimizing Business Processes: Small companies may establish business processes early on and lack the resources to improve them. An MSP can advise you on the best IT solutions to improve your workflow and reduce errors while leaving a clear plan to expand as your company grows.
  • Pivoting to Core Operations: Outsourcing lets you focus on high-value projects. If your in-house IT team is bogged down with technical support issues all day, they won’t have the time or energy to improve processes and quality of service.
  • Stronger Security: An outsourced IT service can help you implement security measures to protect your data center and reduce the risk of a breach. This can include stronger security measures, continuous monitoring, and disaster recovery plans.

Learn more about the advantages of IT outsourcing:

  1. What Are Managed IT Services and What do They Include?
  2. How Much do Managed IT Services Cost?
  3. Benefits of Managed IT Services

IT Outsourcing Disadvantages

The IT outsourcing benefits can easily be worth the cost of investment, but what about the downsides?

  • Less Control Over Your IT: When you entrust your IT to a third-party service, you will lose some level of control. Some MSPs may not be as invested in the long-term success of your business.
  • Security Risks: The more people have access to your records, the greater the security risk. It’s crucial to find an MSP with the credentials you need to meet industry regulations and protect your data at every access point. This can help you avoid expensive data breaches and ensure your company is compliant.
  • Remote Availability: If your MSP doesn’t respond quickly to your needs, you can suffer from extended downtimes that affect your bottom line.
  • Employee Loyalty: Your employees may worry about job security if you decide to outsource an internal process. The key is to focus on how the service will benefit your team, from improved workflows, better technology, and better support services for technical issues.

Finding the Right IT Partner and Taking Advantage of the Benefits of IT Outsourcing

Advantages & Disadvantages of Outsourcing IT Services

The best way to balance the IT outsourcing pros and cons is to find a company with a good track record of keeping clients satisfied and with experience in your industry. When your MSP has a grasp for the challenges your business will face on a day-to-day basis, they are more likely to have a proven solution that fits your needs.

When you find the right provider, the benefits of outsourcing IT services far outweigh the risks. Your MSP can keep your technology running smoothly and help you optimize your IT spending with forward-thinking strategies.

We Don’t Just Support IT., We Support Your Growth.

At CalTech, we serve over 15000 financial institutions, healthcare providers, and businesses like yours. Our fixed-rate pricing makes IT budgeting easy, and our commitment to customer service minimizes the hassle of maintaining IT.

Contact us today and find out how we can save you money and optimize your IT.