Outsourcing IT services: pros and cons

Why outsource?

Do you have the resources required to handle IT in-house? If so, you might not need to outsource. However, most businesses struggle to find these resources. You may benefit from outsourcing IT if you...

If you are experiencing any or all of the above, outsourcing IT might be the answer. Let's take a look at the pros and cons before you make your decision.

Benefits of IT outsourcing

What can an outsourced team provide to your business? There are many benefits of outsourcing IT, and this approach can change the way you operate for the better. Here are some of the biggest positives.

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  Connecting with immediate expertise

  Perhaps the biggest positive of outsourcing is the expertise. It's hard to develop an in-house IT team. Staff members need professional-level training on an ongoing basis. For small and medium-sized businesses, this just isn't an option.

  If only there were a ready-made IT team just waiting for deployment. Well, with outsourcing, there is. Your business can benefit from expert IT services without delay. As soon as you begin your outsourcing contract, you'll have those services at your disposal. And not just any services either. Choosing the right outsourcing partner means you get ultra-high-quality services that are designed to support your business as it grows.

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  Learning more about your business

  Sometimes it's difficult to know what to do next. You are intimately connected to your business, and so it's hard to gain the perspective you need. An outsourced team can change this.

  These professionals have a strong background in IT, and they can offer advice on how to optimize your systems. By looking at your systems and setup from the outside in, they can provide valuable insight into what's working and what needs to change.

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  Staying flexible and ready for anything

  Flexibility is a massive advantage of IT outsourcing. When you outsource, you are connecting with an agile and scalable team. As your business grows, your IT services grow with it. If your needs change and you have to scale back, this is possible too. This kind of flexibility is almost impossible if you handle your IT in- house.

  Preparedness is another big advantage, as your outsourced team is ready for anything. An in-house team is a drain on resources. If you're caught off-guard by an IT problem – and it does happen – an overstretched in-house team might struggle to respond. Outsourced professionals work proactively and are dedicated to the task. In other words, they are right there when you need them.

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  Keeping costs low

  IT costs can be a bit of a problem. On one hand, an IT issue is seriously costly for your business. You want to avoid these issues at all times. On the other, maintaining an in-house team is expensive. Yes, you are protected from issues. But you're paying a lot for this protection.

  Outsourcing provides the answer. You'll be able to get all the protection you need, without compromise. At the same time, you'll save money. Outsourced teams do not need to be trained up because they already have the expertise you need. You also won't have to provide employment benefits and other perks. All of this translates to a manageable set of costs for your business.

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  Getting the best from your own personnel

  You have a great team in place. You have marketing professionals who are great at what they do. You also have designers and developers who make a difference. But what happens when these employees need to handle IT as well as their normal duties? The quality of their work may start to drop while their stress levels soar!

  When you outsource, you are taking a load off your employees' minds. They are free to focus on what they do best and to do it better than ever before. They'll be happier, more relaxed, and better prepared to achieve great results for your business. Meanwhile, your outsourced team will handle IT in a professional way. There's no compromise, just great quality in every aspect of your business.

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  Staying ahead of the game on security

  Digital solutions and information technology are increasingly important to business, and so security risks are growing. Your business relies on a set of solutions, and so you need IT services that can guarantee security. Working with an outsourced team helps you achieve this. These professionals will be ahead of the game when it comes to security, adapting to evolving requirements and threats.

  Contrast this with an in-house approach. We've already touched on the resources required to operate in- house IT services. When you factor in an ever-changing threat profile, the resource requirements increase even more. You'll need to invest a lot of money in your in-house team to gain the same security as you would from an outsourced service. Even after this investment, there are no guarantees.

Risks of IT outsourcing

Outsourcing brings plenty of benefits, but it brings risks too. These risks aren't total game changers, and you can still gain serious advantages from IT outsourcing services. You just need to be aware of the disadvantages of IT outsourcing so you can avoid the potential problems.

Relying on external providers

You may be worried about relying on external providers, and this is understandable. After all, you already have in-house teams in place. You know these employees, and you trust them to do what needs to be done. You might not feel the same towards outsourced staff, so changing your operational model can feel a little scary.

What happens if you can't reach your service provider at a time of need? What if the outsourced team makes a mistake or if they do not respond quickly enough? All of these risks need to be taken into account when you choose an outsourced partner.

Missing out on specific business knowledge

A great IT outsourcing team will be highly professional. They will be experts in IT, so you won't need to train them in this area. But your business is unique. When you first bring in an outsourced partner, they won't know about the specifics of your organization.

While you won't need to train the team, you will need to onboard them. You'll need to bring them up to speed on how you operate, and they'll need to learn what your business is all about. The team will provide immediate IT expertise, but it may take some time to make sure they can deliver this expertise in a way that suits your business.

Compromising security and access

Digital systems and solutions work with sensitive information. This information is protected by secure access protocols so that only approved individuals can use it. So, what happens when you outsource your IT? Letting outside individuals access your systems may put data at risk. You may lose some of this data security and peace of mind.

Again, the outsourced team will have a professional approach. A reliable team will be bound by the same security requirements and responsibilities as your own staff members. Still, the risks of data protection and access security are important considerations when you decide to outsource.

Losing control

It's natural to want to control every aspect of your business. Lack of control means uncertainty, and uncertainty can be frightening. When you outsource IT, you automatically lose a little bit of this control. While the team will answer to you, they will also act with a degree of autonomy, which can lead to risks.

No one wants to lose control of their operations. A reliable outsourced partner will understand this. They will use strong communication channels to make collaboration easy. They will also implement a structure of control and accountability. In other words, you and your management team will get the final say on all those big decisions.

Pursuing different objectives

You may have a clear idea in mind about what you want from your outsourced team. However, your outsourced team may have their own ideas of what they need to achieve. When your in-house and outsourced teams are not aligned, the partnership is put at risk.

Remember to check your contract and service-level agreement (SLA) carefully. Make sure everyone is on the same page and you are all pulling in the same direction.

Misunderstanding one another

You may end up outsourcing IT to a team overseas. This team might be based in Eastern Europe or in East Asia, far from your own team in the United States or elsewhere. There's no problem with this, as the outsourced professionals will still have a high level of IT expertise. But you need to make sure your teams are all aligned.

Outsourcing overseas can lead to language barriers. Your chosen professionals may have a good level of conversational English and you can chat back and forth with ease. But IT services involve lots of specific language and terminology, so you'll need to make sure there are no misinterpretations.

Time zones can also be an issue. Outsourcing from the Midwest to the Far East could put you 10, 11, or even 12 hours behind your IT team. Unless the outsourced team offers 24/7 support, this could lead to disconnection.

How to reduce risks

As we've seen, there are plenty of pros and cons of outsourcing. Overall, IT outsourcing can be hugely beneficial for businesses. But you
need to take the right approach. So, how do you reduce the risks? How do you make sure your own IT outsourcing experience is all pros?