Is Outsourced IT Support Right You?
Outsourced IT support is a growing industry. True to its name, outsourcing is the act of companies using external service providers to help with everything from infrastructure to application services, and business process that surrounds information technology, or IT, as it is commonly known all over. IT outsourcing is a booming business worldwide, and the staggering figures below are just the tip of the iceberg. As of 2019, IT outsourcing revenue generation was $92.5 billion annually. By 2025, the IT outsourcing industry is expected to hit $425.19 billion. Up to 66% of US companies, big and small, outsource IT support. The above statistics about information technology reveal that outsourcing is a vital part of the industry that has revolutionized our world. IT outsourcing providers – what are they? Third-party services that provide technical support from remote locations to onshore and offshore companies are known as IT outsourcing providers. Outsourcing companies are usually referred to as MSPs or managed service providers. Managed service providers are different from local technicians or developers that provide an instant fix to technical problems. Local IT technicians often work on an hourly basis – meaning your company can hire independent or freelancers without having a partnership with them. On the other hand, MSPs have a partnership with companies that use their services. IT outsourcing providers do not just fix broken connections. A managed service provider does everything from installing, supporting, monitoring, and implementing software and programs. MSPs also provide security of network computing and every technical requirement your company needs to do business. Some MSPs are located around the globe from the Americas, to South East Asia, Western Europe and other other continents are also available. Types of IT outsourcing Broadly classified, IT outsourcing is of two types: Co-managed IT outsourcing As the name implies, co-managed IT outsourcing is when you outsource only a part of your company’s requirements. Here, you have a dedicated in-house IT staff responsible for general computing, hardware, and software issues. The outsourced support takes care of the 24/7 cybersecurity monitoring that your in-house team does not have the expertise or the resource to execute. Outsourced experts can also help with an overworked IT department and increase the overall efficiency of your organization. In addition, supplemental or co-managed IT outsourcing can dramatically reduce the cost your company may be required to pump into the department. However, the overall responsibilities of the outsourced help depend on the package offered by the outsourcing services. Co-managed IT outsourcing packages are relatively cheaper than fully outsourced packages. Outsourcing a part of the technical help that can work with an in-house team is a fantastic way to make the best decisions that can transform your business goals. This type of outsourcing is a great choice if you run a large business, but co-managed IT outsourcing can be expensive for smaller organizations. Complete IT outsourcing Complete or full outsourced IT support is when your company does not have an in-house team for your technical and information technology needs. Instead, you outsource the help from a third-party service provider called the MSP. In this case, the managed service provider is responsible for troubleshooting, updates, and backups to monitoring. Networking computing and servers are also managed and stored by MSPs locally or on cloud apps and other off-site data centers. You can also partner with MSPs for special projects, strategic consulting, and vCIO services. Understandably, fully outsourcing IT support will cost more than supplemental or co-managed IT outsourcing. The advantages of complete/full IT outsourcing are many, as you have little to worry about the technical aspects of your business. However, narrowing down on the right MSPs that mirror your organization’s exact needs and goals at the right price can be tricky. Why outsource IT support? Some of the biggest names in business outsource IT, which promptly raises the question – of why. Why is everybody outsourcing information technology support from different parts of the globe? Below are the top reasons why: Cutting costs A primary reason for many companies outsourcing IT support is to cut costs, according to a Deloitte survey. Up to 70% of companies that outsource support for information technology cite the drastic reduction in the overall cost. Outsourcing is dramatically cheaper than having an in-house team because they come from countries with low labor costs. The country rounding the list of the top destination for IT outsourcing are India, followed closely by the United States and China. Other countries that provide IT outsourcing include Malaysia, Brazil, and Indonesia. Flexibility Up to 40% of companies that outsource cite flexibility in running their business. With IT experts working round the clock and providing real-time remote support, every technical issue is taken care of almost instantly. As the company scales in size and revenue, restructuring is inevitable. While the top players in the company are engaged with new and tougher responsibilities, outsourcing support takes care of the old liabilities, so there is no disruption in the workflow. Speed to market Another reason why IT outsourcing is common among companies is speed to market. As much as 20% of companies consider that outsourcing helps them to establish their brand/company’s presence in the industry quickly. Since the competition in any type of business is cutthroat, outsourcing is a fantastic way to generate an idea, develop it, and take it to the market before the competitors. Access to tools More than 15% of companies also rely on outsourcing because it gives instant access to tools and processes. When a team of IT professionals is on hand to provide everything from technical support, security, software development, and technical issues, it is a resource very few businesses will not use. Other reasons why companies turn to outsource IT support include agility and scalability. What is the cost of outsourcing IT support? The average cost of outsourcing IT support generally ranges from $80 to $150 per month. However, the cost of outsourcing IT support depends on several factors, including: The service package pricing type: Per month
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