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Outsourcing managed IT services seems to be all the rage in corporate circles. CFOs and other decision-makers tend to tout the cost savings of outsourcing versus hiring more in-house IT staff members. But corporate insiders often find that revenue-driven strategies can mask hidden or qualitative costs that sometimes prove expensive.
That’s why it’s essential for industry leaders to consider making a thorough review of practices that are working, areas needing improvement, as well as the cost of in-house IT. To gain a clear, concise understanding of whether it’s in your best interest to outsource corporate IT services, these are three questions you need to be answered.
When determining whether your organization saves money by outsourcing, consider beginning with hard numbers. Review what a new IT tech hire costs in terms of salary, benefits, payroll taxes, etc. Crunch all the tangible numbers against hours of service. Then contact a third-party managed IT firm for a no-cost consultation.
“Reducing costs is the number one reason why companies outsource. In fact, 59 percent of companies surveyed cited cost reduction as their motivation for putting this into practice. Why? Outsourcing tasks to trained professionals allow you to stick to smaller budgets and only pay for what you need,” Creative Zone founder Steve Mayne writes in Entrepreneur magazine. “This is usually far more cost-effective than hiring a full-time employee.”
While Mayne’s assessment typically holds true, it’s crucial that you estimate how much your unique organization would save. By comparing the one-to-one costs of what tasks an in-house technician would handle versus an independent expert, you’ll have quantitative data.
It’s not unusual for some companies to experience buyer’s remorse after eliminating their entire IT departments. While the companies P&L statement may look healthier on the surface, loss of onsite personnel can result in some disruption.
Consider what IT technicians do throughout the day. Many work diligently with colleagues to resolve minor technology glitches, resolve login issues, update antivirus software, and run everyday maintenance programs, among others. In-house techs have emerged as corporate problem-solvers in many ways. That’s why many industry leaders outsource the following managed IT needs while maintaining a minimal in-house team.
Eliminating entire departments in large corporations could hamstring productivity. Of course, this potential loss doesn’t leap out on our ledger. Before going all-in on outsourced corporate IT, consider carrying a minimal in-house team as well.
“Most IT teams already outsource some responsibilities (software-as-a-service apps, for example), so the question of whether to outsource a solution or service should fall within a bigger discussion about the business strategy, rather than the budget,” IT executive and author Jeffrey Ton reportedly says in Forbes.
The perfect third-party IT firm for one organization may not work seamlessly for another. Each industry and niche business has unique goals and operational needs. It’s generally worthwhile to meet with a few IT consultants with experience in your industry. Consider your long-term objectives and how well they match with the IT firm. Simply put, thoroughly vet a managed IT company and be confident they can deliver exactly what you need.