The Risk Involved With Outsourcing Managed It

As a business leader, it’s generally in your best interest to minimize risk-taking. Successful decision-makers prefer to lean on data and have a reasonably good idea about outcomes. Few things deliver a sense of professional security better than having control over profit-driving endeavors and the tools used to achieve goals.

That being said, there seems almost no sound reason to outsource IT when you could hire people to oversee the infrastructure. If you look at outsourcing IT as a control issue, paying in-house technicians appears to reduce risk. But by looking beneath that surface, you might be risking your organization’s future by not outsourcing IT to a third-party expert.

Outsourcing IT By The Numbers

Fortune magazine continues to track data regarding global outsourcing trends. Lumping wide-reaching industries under the catch-all term “gig economy,” the recent piece by G. Dautovic called, 15 Must-Know Outsourcing Statistics (2020 Update), covers outsourcing IT and sub-categories as well. The argument made by this, and pieces like it, does not necessarily try to persuade industry leaders to follow the herd. But the overwhelming statistical growth in outsourcing IT, among others, support the notion this can be a successful strategy.

  • Upwards of 54 percent of all organization work with third-party support
  • More than $75 billion was spent on security outsourcing last year alone
  • Nearly 80 percent of businesses report a positive outsourcing experience

In 2018, the global investment into outsourcing topped $85 billion. The so-called gig economy article links a stunning statistic that more than 90 percent of organizations consider shifting or expanding Cloud use to expand their market presence.

“Stats on outsourcing show that a third of all organizations are willing to accept an increase in operating costs if they get access to the Cloud in return,” Dautovic states. “This means that for a large number of businesses, the main motivation for this move is not to lower the costs by cutting jobs, but to be more competitive and have a greater possibility to innovate.”

The conventional wisdom appears to be that Cloud-based systems deliver expansive benefits. That type of innovation certainly requires significant IT infrastructure. But does an increased Cloud footprint necessarily make outsourcing IT the best strategy?

Thought Leaders Value Outsourcing IT Decisively

A recent Forbes piece, called Should You Be Outsourcing? Eight Signs to Look For, by an expert Young Entrepreneur Council (YEC) panel, argues that industry leaders would be wise to watch of signs that outsourcing IT is sorely needed. The YEC group of top entrepreneurs, 45 years old and younger, identifies pressure points that in-house control fails to deliver the necessary benefits. The YEC thought leaders had these things to say about outsourcing.

Innovation

“Hence, never let your company’s time get wasted in mundane work. Instead, you can just assign it to a freelancer and get it at a very minimal cost. Your work would be easier and stress-free, as well,” Vikas Agrawal of Infobrandz reportedly said.

Specialized Tasks

“We have two rules for outsourcing a task. The first rule is that if something is taking our internal team too long to do, it likely makes sense for us to outsource this — especially if it’s something that happens repeatedly. Building on that point, it’s likely taking too long because the person doesn’t have that expertise, or they don’t enjoy it,” Erin Blaskie of Fellow.app reportedly said.

Outsourcing IT Advantages

“If you don’t gain an advantage, you should probably outsource the task. Take an accounting firm, for example. The firm needs IT support to keep its systems running properly, but hiring an in-house IT staff isn’t going to give the firm an edge over its competitors. It’s also not going to attract new clients or help professionals perform their core work more efficiently. Thus, it makes sense to outsource the IT department,” Shaun Conrad of My Accounting Course reportedly said.

Outsourcing IT Isn’t A Business Risk

It’s abundantly clear from the statistical growth in the gig economy and YEC thought leaders’ views on outsourcing that an increased number of organizations are gaining critical advantages. If outsourcing IT were a risky move, both investment and pervasive views would be trending toward the negative.

Wide-reaching industries secure substantial benefits by partnering with a third-party IT firm that fits their needs. Expertise in cybersecurity ranks among the greatest IT needs, as well as the ability to improve communication and build remote IT infrastructure. If you’re organization struggles with productivity, lags in IT innovation, or would benefit from a greater Cloud presence, consider vetting area firms. With the right IT partner, your operation can leverage cutting-edge strategies and enjoy improved success.

Let us be that partner and help you with your IT needs! Call us at (408) 797-0756 or click here to contact us!

Duleep Pillai | Published on June 19, 2020

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