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Why Businesses Choose to Outsource IT

by: Mary Christine Galang

Tuesday, July 18, 2017 |

An IT infrastructure is one of the most vital support functions in a business. As your company grows, so does your need for a highly secured, maintained, and regularly updated IT support. This ensures that your business operates efficiently and effectively, and at the same time keeping your and your clients’ information safe from outside party.

However, for small- and medium-sized enterprises (SMEs), the cost of running an entire IT department can be daunting. This is why in the last few years, many businesses, including SMEs, have begun to outsource their IT functions to third-party providers.

In fact, according to the International Organization for Standardization (ISO), as much as 60% of the IT functions are being outsourced and accounts for as much as 10.2% of the average budget allocated for IT outsourcing alone.

There are numerous benefits to outsourcing that it has become an entire industry on its own. In some countries like the Philippines, it is one of the biggest and most dynamic economy drivers, with IT (and BPO or business process outsourcing) as the primary sector and second largest income source of the country.

Benefits of Outsourcing IT Functions

We listed down some of the most common reasons businesses opt to outsource IT:

  • Reduced costs. Outsourcing IT functions cuts spending by as much as 20 to 40%. At the very least, both capital and operational costs are more predictable when you outsource it rather than setting up your own IT support. A Gartner study concludes that businesses with less than 300 employees have seen significant savings on email management by 80 percent. Not only do you save on having to invest on (and eventually update) equipment, your business operations are also more time-efficient.
  • Increased flexibility. Companies that rapidly grow and/or in transition can extremely benefit from outsourcing IT. It enables them to scale up or down when they need to in order to accommodate changes in their system faster than a traditional hiring set-up.
  • More focus on core processes. If you are not running a tech company, chances are, IT is not one of your core competencies. But as mentioned, it is a major support function where many, if not all, of your operations rely on. This undoubtedly demands management and focus that might cause you to struggle in terms of time and personnel. With outsourcing, IT tasks and functions will be handled and managed professionally at all times, as you focus on developing your business and honing your competitive advantage.
  • Access to resources. Outsourced IT companies employ industry experts and provide the latest in technology. In addition to technical support, you also have the advantage of having a reliable team that can advise you on the best technology you can adapt for your business. Third-party IT vendors also ensure continuity of support at any given time. Your systems are routinely maintained and updated to keep up with industry requirements.
  • Reduce risks. IT outsourcing providers ensure that your company is well-protected from malicious parties and malware attacks. Not only do you have a fortified defense, you also reduce the risk of data loss with a highly secure backup and recovery system. Downtime disruptions are minimized, and you are immediately provided support in case of any network problems. 
  • Boost employee morale. Some companies do not realize that they run the risk of burning out their employees by assigning them multiple tasks that they may lack the necessary skills to adequately perform, especially tech-heavy tasks that require precise knowledge and skillset. Outsourcing these functions will allow them to focus and excel in what they’re good at.

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