As a business owner or executive, it may be difficult to decide between hiring an IT outsourcing services company or handling your IT in-house. You have a lot to consider when making business decisions. Whichever approach you take must ensure the security and privacy of your business assets and data as well as maintain smooth business operations. You also have to consider costs saving and long-term benefits.
Whether you run a small-, medium- or large-scale enterprise, there are nine ways hiring an IT outsourcing company can benefit your business in the short and long term. However, outsourcing your IT presents potential challenges and risks. We’ll cover five risks you may encounter when outsourcing your IT and how working with PCS helps you avoid these risks.
So you can make the best hiring decision, we’ll share eight questions you should ask when vetting an IT outsourcing company you want to hire. Let’s dig into the outsourcing IT services pros and cons and all you need to make the best decision for your company.
Benefits of Outsourcing Your IT
Here are the questions we want to answer — why outsource your IT services, and how does outsourcing your IT help you achieve your business goals? The following are nine benefits and pros of outsourcing your IT:
1. Access to Necessary Technology and Software
Because of the more limited knowledge and experience a small or medium business team may have access to, the IT hardware and software you need for smooth and secure business operations can be more than your in-house team can figure out.
On top of that, technology is always changing. The solutions and equipment you use today for your system monitoring, network security and data management can become obsolete quickly. Keeping up to date with these changes can be difficult and expensive for your in-house team. Trying to update your IT to these new technologies and software in-house also takes time.
The time and expertise required to implement and maintain IT solutions could cut into your in-house team’s time and impact business operations. IT outsourcing companies make it their responsibility to stay up to date with the latest technology trends. Also, an IT outsourcing service company has more professionals with advanced expertise levels to serve your company.
This means outsourcing your IT gives you access to the necessary tech, software and experience your business needs. You can get your system on the latest technology and software fast — most times at no extra cost to you.
2. Flexibility and Adaptability
If your business does not have a consistent need for IT support and system monitoring, hiring an in-house IT team may not be a cost-effective decision.
For a large enterprise, your company’s IT needs change as your operation grows and you serve more customers. To effectively meet this new demand, your IT team and infrastructure must scale fast. This may mean hiring more in-house experts, getting your team to learn new technologies, purchasing more hardware and software licenses, and restructuring your system.
When your IT needs drop, you have a host of employees and tools that bite into your company funds. This makes running an in-house IT team inflexible, hard to scale and not cost-effective for many businesses.
Outsourcing your IT provides your company the flexibility to scale up and down easily as your needs change. You pay for what you need when you need it. You have a dedicated team of experts to meet any rising demands, changes in your operation or customers’ needs — often with a fixed cost.
3. Lower Operating Cost for Higher Quality
An in-house IT support team would require purchasing and updating all needed hardware and software. This is in addition to salaries, bonuses, providing office space and all the other necessary overheads. This is more expenditure for your business that is often transferred to your product or service pricing — which can make you less competitive in your industry.
Outsourcing your IT enables your company to enjoy the benefits of a full IT team without the overhead costs and demands on management. You can secure this for a fraction of what an in-house team would require. For example, with an outsourced IT team, you may not need to buy hardware — and the upgrades it periodically demands. You also wouldn’t pay for sick leaves, bonuses and other benefits that a full-time in-house team would require.
An outsourcing company gives your business a ready-to-respond IT team and a secure operation at a lower cost. This lowered cost of operation means you can offer competitive prices to your customers and increase your competitive advantage.
4. More Capital Funds
Outsourcing your IT needs helps you save costs without compromising quality. This makes more funds available for your company, which you can apply freely in the most high-impact, revenue-generating areas. With a lower IT cost and excellent service, you can free up space in your budget while benefiting from top-notch IT.
Your in-house team also may not have the adequate IT industry knowledge to address all the laws and regulations you have to comply with. This can expose you to legal issues that could lead to penalties and negatively affect business operations.
Conversely, an outsourcing company with experienced experts, like PCS, is always in front of industry requirements and compliance to help you stay secure and compliant. This creates a safety net for your business to operate smoothly, protecting your business from the cost of noncompliance or violation of regulations.
5. 24/7 Support
With an in-house team, your company may be at the mercy of sick leaves, vacations, holidays, out-of-work hours and work breaks. In an emergency, this can negatively impact your customers and your business.
With an outsourcing company, you have a 24/7 IT team monitoring operations and providing support while you work and sleep. The company can provide adequate staffing to eliminate IT personnel gaps during breaks, vacations or sick leaves. This means your security is always intact, crises and emergencies can be handled fast and your system can be running smoothly all the time — translating to more customer satisfaction and revenue for your business.
6. Improved Business Focus
An in-house IT support team requires management and supervision for effectiveness. You may also need to consistently review their operations to ensure they follow best practices and comply with regulations. This can occupy time and focus that could be better spent on other business matters that drive revenue.
Outsourcing your IT support frees up time every week for you to focus on other crucial matters for your business. Also, when experts oversee your company’s IT, your concerns and needs for supervision are reduced to a great extent. This gives you peace of mind and more mental space to focus on what only you can handle.
In the long run, this can translate to better service offerings, better internal operations and efficiency, and more revenue for your business.
7. Ability to Implement New Strategies Quickly
Your in-house team may require special training or demand a new hire to implement new strategies, set up new systems and change your IT architecture and operations. This can take a lot of time that may affect smooth business operation. In critical cases or emergencies, this can affect your business revenue or lead to reduced customer satisfaction.
With an outsourced IT company, new systems can be implemented, strategies executed and system infrastructures installed quickly.
8. Greater Range of Expertise
Your in-house team may not have the cross-industry and worldwide IT experience that an outsourcing company like PCS brings to the table. Also, it’s unlikely that one person or a small team can specialize in everything about your IT. An in-house team may only be used to your system architecture and may not have the skills to navigate new problems, new implementations or new system demands.
On the other hand, an IT outsourcing company brings a wide range of expertise and experience to work for you — at a fraction of the cost of running an internal team. The employees of outsourcing IT agencies have worked with countless companies and different system architectures and designs and have met different business needs and requirements across varying industries and regions. In addition to being certified, trained and knowledgeable experts, they are experienced and time tested.
9. Keeping up With Compliance and Security
Working with an outsourcing company keeps you up to date on regulations, upgrades your system to the latest security infrastructure fast and ensures compliance every time. With an in-house team that hasn’t been trained on compliance and security, you may be caught unaware by laws and regulations and exposed to security breaches and system attacks due to a lack of information on industry trends.
IT outsourcing companies are at the forefront of the industry. They can update your system to withstand the latest security threats, complying with new laws and regulations that your internal team may miss.
What Are the Risks of IT Sourcing?
Now that you know how outsourcing your IT benefits your company and helps grow your bottom line and profits, what are some of the risks you can face outsourcing your IT? Working with an outsource partner can come with some challenges. The best way to overcome these challenges is to work with an experienced and tested IT outsource partner.
Here are five risks and challenges you may face with outsourcing your IT and how hiring PCS can help your company overcome them:
- Working with unresponsive IT vendors: In the case of an emergency, an outsourcing company can be slow to respond compared to an internal IT team. To help businesses like you avoid this, at PCS we have hundreds of IT experts ready to work for you. We even take it a step further and assign a dedicated account manager for you when you hire us. With this, you get a prompt, on-the-moment response to your needs 24/7.
- Subcontracting your work: Some IT vendors can outsource your work to subcontractors — without your knowledge — when they run out of staff to handle their clients. This can lead to a breach of privacy and expose your business and system data to people you do not know. This is why at PCS, everything is handled by our team of experts. We do not subcontract your work. We have the staff and resources to handle your company’s needs.
- Using obsolete equipment: Because your IT vendors decide which technology or software your system uses, they can use obsolete and out-of-date technology to save cost. This can expose you to breaches, lead to low system performance and affect your bottom line. At PCS, we only use state-of-the-art technology and tools for your IT needs. We’re constantly upgrading and updating our systems.
- Charging more than you can afford: For companies of all sizes, paying IT vendors can be expensive, especially if your team and IT needs are growing. While most IT vendors count your employees and equipment to give you a quote, we look at your IT needs from a qualitative, rather than quantitative, point of view before giving you a quote. This means with PCS, you don’t pay for every employee or hardware, you pay for the services and help your business operation needs, giving you maximum value for your money.
- Signing unprofitable long-term contracts: Most IT outsourcing contracts are long-term. This can present lost revenue when your IT needs drop, and you do not need your vendor’s services or when you want to change vendors. That is why at PCS, we earn your business every month. This offers you flexibility and provides more cash for other areas of your business.
How to Vet IT Agencies
How do you choose the best IT support outsourcing company? It boils down to properly vetting a vendor before hiring them. Want to change your current IT vendor or are you in search of a vendor for the first time? It’s easy to hit a home run with the best vendor for your business needs and industry requirements on your first try if you ask the right questions.
Below, we share eight questions you should ask your shortlisted IT vendors and things you should look for when researching prospective IT vendors:
- Do you have experience providing IT support in my industry? To get the best support, you want a vendor who has experience in your industry and will understand the risks, challenges, expected pitfalls and loopholes in your industry. A vendor should also have a general understanding of how your industry operates. This will provide far more value than a vendor that does not have any experience helping businesses in your industry.
- Can your agency handle my company’s needs? You want to know whether the vendor has the resources and personnel to handle your company size easily without resorting to a subcontractor. It will serve your business right to work with a vendor that has resources that fit your business size.
- What is included in your service contract? What services does the vendor provide? Does the contract include monitoring, IT support, compliance, security and backup, crisis management and more? Working with a vendor that provides everything you need will help you work with one vendor, streamline your operations and eliminate conflict and problems for your business.
- What are your availability hours? Also, how fast does your IT support agency respond to needs — especially in an emergency? If your business needs IT support 24/7, you don’t want a vendor that’s only available during business hours.
- Who have you helped in the past, and what are your customers saying about your services? Also, what is your customer retention rate? This can tell you a lot about the quality of a vendor’s service. The reason is if a vendor’s customers stay, it means they are getting value from their services, which is something you want.
- How easy and trouble-free will it be to transition to your company? You want a smooth and hitch-free system transition to ensure continuity of work and operations while you migrate to the new outsourcing company. The vendor must be able to prove that migrating to their services will be smooth and easy.
- Will you offer us a dedicated manager to cater to our needs? Or would a dedicated team be assigned to our company? A vendor that has a manager and team assigned to your company can provide the services and support you need, when you need it and fast.
- What language does your team speak? You want to work with an IT outsourcing service company that speaks your language. This ensures an easy and open line of communication between you and your outsourcing IT managers.
With these questions, you can vet the managed service provider you’re considering and make the best decision for your company. While this is a quick roundup, you can see a detailed breakdown of the questions you need to ask prospective vendors in our article on 9 Things to Ask an IT Support Company.
Considering Outsourcing? Reach out to PCS With Questions
Getting the best outsourcing partner can be simple when you’re informed and ask the right questions to make a good match. When you hit a jackpot with an IT outsourcing company that truly cares about your business, you won’t want to imagine a future where you do not have them. At PCS, we aim to offer that “jackpot” experience to every customer.
We’re extremely customer-focused, from our style of pricing to the tools we use and how we work with our clients. Our team is made of highly experienced IT experts who speak and communicate in simple and plain English. This means you always understand the issues and every step we take.
When we come in, we take ownership of your IT needs and challenges so you can focus on your business. This means more time, mental space and peace of mind to drive results for your business — all without the hassle of hiring and managing an in-house IT support team.
We start with learning and understanding your business so we become a part and extension of your organization. Then we provide a dedicated account manager for your organization to ensure you get all the support you need, instantly and anytime, for a fixed customized monthly fee.
Contact us today to discuss your IT support needs, and we’ll help you get started!