With the current state of the economy, businesses are trying harder than ever to cut costs and save much-needed resources. Overhead costs aren’t recovered by billable hours, so it only makes sense that they be as low as possible. Outsourcing your IT employees or IT department is one of the best ways to reduce overhead costs for almost any business. Strategic outsourcing doesn’t carry the negative connotation that foreign outsourcing once did, and the potential benefits of outsourcing are well documented.
Here are ten reasons that outsourcing your IT department should be at the top of your company’s to-do list:
1. You don’t pay for benefits. Any type of outsourcing will save money on healthcare, 401K etc. Simply put, the less employees whose insurance and retirement you are contributing to, the more money you save.
2. You don’t pay for continuing education. In the rapidly advancing field of Internet Technology, continuing education is a must for employees to remain effective. Many companies offer to pay for employees to continue their education or match tuition, which is expensive. With outsourced IT, there are no extra expenses.
3. Wholesale prices. IT companies come with buying power, which means they secure better deals for your business because of the volume they buy in software, hardware and services. Organizations that lack strategic relationships with technology vendors and wholesalers can benefit from outsourcing IT.
4. Improved company focus. Outsourced IT companies focus on IT so you can focus on your business. Businesses that focus on their core competencies tend to be more successful. For example, if you run an accounting firm, your time would probably be better spent doing something besides cleaning your windows and scrubbing your toilets. So, what do you do? You hire a cleaning agency—outsourcing in its most common form.
5. Specialized experts vs. one generalist. Each employee of an IT outsource provider has extensive knowledge of one or two areas of IT, making him or her an expert in that specific IT subcategory. IT outsourcers have multiple employees, meaning there are multiple experts working for you. For a fixed monthly cost, you get a CIO, Telecom Manager and Helpdesk. Typically, that fixed monthly cost is significantly less than one IT employee’s monthly wages.
6. Services are utilized as needed. With outsource providers, organizations pay only for the services they actually used. Month to month, those needs may change, but IT outsource providers offer an array of services to choose from. With an IT employee, a salary or hourly wages are paid even when there is significant down time.
7. No turnover or new hires. There are significant expenses associated with turnover and finding and training new employees. Outsourced IT management eliminates these costs. IT companies absorb these costs and make sure you have the best resources in reach at all times.
8. Reduce risk. When you outsource IT, you share risk such as demand variability and capital investments.
9. Outsourced IT can grow with your business. With customizable IT solutions and services, IT outsource providers can easily and quickly adapt to changing business needs. Also, if there are specific business quarters or months that require more IT assistance, an IT outsource provider can assimilate to your needs and scale back to a maintenance level afterward.
10. Lower operating costs. Reducing and controlling general operating costs is the single most important tactical reason for outsourcing your Information Technology Management.
When times are tough, yet you know you can’t pull back on critical IT elements including security, redundancy, and business communications, IT outsourcing can help you stretch your operating dollars further. You get the highest level of expertise for a fraction of employment costs.
Quality IP is a leading provider of Managed IT and telecom services. Since its founding in 2003, Quality IP has worked tirelessly to keep its promise to customers: Technology made simple, 24/7, 365. For more information about Quality IP, visit www.qualityip.com
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