Weighing The Risks & Benefits of IT Outsourcing

Posted on Friday, September 8, 2023 and filed under Articles

In 2023, it was reported that 78% of businesses globally are dealing with a technology talent shortage. This is a big problem in an era where information technology is more important to business operations than ever before. As a result, thousands of executives are left weighing IT outsourcing’s advantages and disadvantages.

One common misconception about IT outsourcing is that you will inevitably have to deal with difficult employees in distant time zones with little knowledge of your language. This is untrue and too often leaves people hesitant to outsource when they could really use it.

Today, we’re going to take a closer look at the true advantages of IT outsourcing services. We’re also honest, so we’re going to show you some of the real risks involved too. These pros and cons should give you a good foundation as you decide whether you will choose to outsource your IT.

“In a digital era where tech talent is scarce but demand is soaring, IT outsourcing could be the strategic decision that makes or breaks your business.” – Jim Stackhouse, CEO, NeoLore Networks

The Benefits of Outsourcing IT Services

Cost Efficiency

Instead of maintaining a full-time in-house IT team, you can tap into specialized services only when you need it. Alternatively, if you do want a full-time team but don’t yet have the budget for one, you can outsource a managed IT provider to perform that role for a fraction of the cost.

However, if you do have folks hired full-time, that doesn’t mean you can’t also outsource. Outsourced IT services can also become an extension of your current department, instead of a replacement. This helps you get more IT work done with fewer labour costs.

Access to Expertise

When companies outsource, they can tap into a vast pool of IT experts. These professionals have years of experience and are well-versed in the latest technologies. A good firm will also consult you on your specific needs so they can offer solutions that actually make sense for you.

An extra fresh set of eyes is also a great way for you to uncover hidden gaps in your IT infrastructure. For example, there could easily be cybersecurity vulnerabilities in your current defenses. An outsourced cybersecurity expert can help you spot those vulnerabilities if they aren’t immediately obvious.

Scalability

As your business changes, your IT needs will evolve. Outsourcing allows for easy scalability in this situation. Whether you’re expanding rapidly or scaling down, outsourced IT services can adjust accordingly, ensuring you’re always adequately equipped.

This adjustment is much easier and less painful than trying to do the same with in-house staff. Changes could mean recruiting headaches or layoffs. Outsourced services reduce your need to deal with that.

Risk Mitigation

Technology is changing at a breakneck speed. Every new change means new risks and these risks aren’t always obvious. Outsourced IT professionals are trained to spot these new hidden risks. Having them in your back pocket helps you prevent surprise issues and reveal hidden problems.

Outsourced support services can also be a great way to get more issues solved faster. Leaving unresolved problems in your network can quickly lead to bigger headaches. Fast, responsive IT support helps you resolve these problems before they get a chance to evolve.

Possible Cons of IT Outsourcing (and How to Avoid Them)

Lack of Control

Entrusting IT operations to an external provider can sometimes lead to a feeling of lost control. Regular communication, transparent performance reports, and working together to set mutual goals can help ensure that you stay in the driver’s seat.

You can get a good sense of which firms will prioritize this on your initial discovery call. Make sure you ask a lot of questions and see how they react. Even if you don’t fully understand their answers, watch to see if they’re willing to answer at all. Dodge firms who dodge questions to avoid losing control over your IT assets.

Quality Concerns

Every business aspires for top-tier service quality. However, when outsourcing, there’s a risk of standards not aligning with expectations. To counter this, set clear performance benchmarks and maintain an open feedback channel. This ensures continuous alignment with your business standards.

Outsourcing companies who are interested in getting to know your business needs are less likely to present this problem. Prioritize firms to advertise tailored IT solutions and interactive experts. This not only ensures quality, but also ensures that they don’t oversell needless solutions.

Avoid Quality Concerns With a Hands-On IT Partner

Hidden Costs

While the upfront costs of outsourcing might seem attractive, there are sometimes underlying expenses that surface later. Truly take the time to understand your partner’s cost structure and ensure transparency in their contracts. Hazy promises are never a good sign in any business deal.

You might also consider finding someone who offers service packages and flexible contracts. This way, if unexpected budget creep looms, you can work with them to figure out a better solution for your needs.

Data Security Issues

Anyone who has access to your data should match or exceed your company’s cybersecurity standards. Between 2022 and 2023, 54% of breached organizations discovered that the breach began at a third-party vendor. In other words, don’t just ask about how they’ll protect you, ask how they protect themselves.

Learn More About How You Can Make Your IT What it Needs to Be Your Complete Guide to Managed IT Service Pricing Try Virtual Private Network Services to Strengthen Online Security of Your Business Top 7 Analytic Tools that Every Business Analyst Should Know

Please note that this shouldn’t be a one-time deal. The cyber landscape evolves and your  outsourced provider needs to keep up to stay secure. Check in regularly to make sure they’re up-to-date with the latest cybersecurity trends.

Think The Advantages of Outsourcing Outweigh The Risks?

As long as you take a strategic approach to sourcing your provider, the benefits clearly outweigh the risks. Of course, no one is perfect, but a professional, transparent managed IT services provider will always keep you in the loop so you can get the best support possible.

Since you’re already here, why not start by taking a look at NeoLore Networks? We’re an Ottawa-based IT company that’s dedicated to challenging the way outsourced IT services are delivered. We want you to experience the best possible service without needless lock-ins.

Trust us to show you the way IT really should be. Contact us today to get started.