Outsourcing refers to delegating tasks to a professional, which can be a specialist company or expert itself. Now, the question is whether it’s worthy. Is it really helpful in saving money? The answer lies in this post.
Imagine a startup or mid-size company that is struggling to manage investment in IT infrastructure. Certainly, the cost may surpass millions of dollars, which covers everything from setting up an IT infrastructure, automating backend tasks, and deploying cloud storage to onboarding, training, and managing tech experts internally. Overall, it can be expensive, risky, and unpredictable also.
This is where managed IT services can step in to save small- to medium-scale enterprises. However, large enterprises also delegate their non-core technical tasks to IT specialists. But they can deploy it internally also.
What Is Managed IT Services Outsourcing?
Managed IT services outsourcing refers to hiring an expert with hands-on experience in the technology sector to delegate the responsibility of proactive IT management and maintenance. Overall, these services encompass everything from setting up a proactive management to the maintenance of the company’s IT infrastructure. For sure, another alternative is also there, which is a third-party MSP, or cost-effective Managed IT Services Provider.
These alternatives or services can be availed through a subscription plan, which covers network monitoring, cybersecurity, cloud support, data backup, helpdesk management, and software updates.
Cost–Benefit Analysis of Managed IT Services
Now, let’s consider the cost matter associated with managed IT services outsourcing.
1. Significant Cost Savings
For sure, the foremost benefit of delegating IT services to a specialist is low cost. It ensures more savings because of these reasons:
Predictable Costs (OpEx vs. CapEx)
MSPs are available to incorporate on a flat-rate monthly subscription. You don’t need to pay hefty upfront deposits for hardware or licensing of clouds or other resources. Overall, the cost can be predictable.
Up to 30% Lower IT Spend
On average, businesses see nearly a 30% reduction in the overall cost of IT services outsourcing. Simply put, the beneficiary company does not need to separately spend on onboarding IT professionals, training, and establishing IT infrastructure.
2. Access to Expert Talent
Comparing the cost of internally establishing managed IT resources with outsourcing shows a massive difference. Internal management of a full-time team with expertise in cybersecurity, cloud, and compliance is not feasible for every business. An experienced MSP can reduce it exponentially by offering specialised professionals to assist at a low cost.
3. Managing Technology-Based Services Effectively
Managed Service Providers, or MSPs, can be available round-the-clock for the service seeker, provided the agreement has it. So, it becomes a glitch-free journey to monitor and fix technical problems before they escalate and become irreversible. This timely assistance helps in smoothing operations and reducing disruptions.
4. Enhanced Security & Compliance
Cybersecurity is the topmost concern for businesses because it can discontinue commerce at any time when it hits. The delegated MSP can navigate this risk by introducing advanced security systems and tools to secure firewalls, intrusion detection, and compliance monitoring (GDPR, HIPAA). For it, you don’t have to pay an extra amount, as it’s all-inclusive in the subscription plan.
5. Scalability & Flexibility
As the business grows, its requirements increase. Technically, it may require more storage, network connectivity, stringent data security, etc. With an MSP, these additional requirements can be fulfilled without hiring extra IT staff or additional tools.
6. Focus on Core Business
Contracting with a specialist for IT management needs empowers internal teams to focus on sales or tasks that attract revenues, like customer service or strategy defining.
Calculating ROI with Cost–Benefit Ratios
Before outsourcing, you need to conduct a cost-benefit analysis. It refers to quantifying whether the benefits of delegating tasks exceed the cost; if yes, by how much. All in all, incorporating with external companies to reduce IT stress involved in managing IT services attracts these benefits:
- Low expenditure, as in-house IT salaries and infrastructure costs will be minimal.
- Barely see any elongated downtime and productivity losses.
- Easily prevent cybersecurity and compliance penalties.
- Effortless access to advanced tools and upskills
- Faster onboarding of new tech
- Greater flexibility and faster scaling
- When you calculate savings because of these benefits, the expenditure will cost minimal, and the value will be more.
Potential Downsides (What to Watch Out For)
Considering challenges or risks, any outsourcing model can be a threat because of these reasons:
Hidden Costs: There might be hidden costs with outsourcing solutions that you may not be aware of. So, experienced companies or businesses look closely into all clauses while signing an outsourcing agreement. This latent cost can be requested in the name of onboarding, updates, or a compliance fee.
Loss of Control: While entrusting data or IT access, beneficiary companies may lose their control over crucial data. Or, it can become vulnerable, which is a serious concern.
Dependency on MSP: A repetitive or prolonged contract may create dependency on the managed support provider. Its absence can disrupt operations.
Conclusion
Outsourcing is certainly a pleasing experience for those who lack time, money, and resources to manage their back-office operations, especially data. If your business doesn’t have the budget for extensive in-house IT, faces frequent downtime, needs better cybersecurity, or wants to grow without tech stress, delegating managed IT services to an expert is a smarter and more scalable choice.