Fully developed software solutions and your IT requirements are being met with very few deployed resources. Doesn’t that sound like a sweet deal to you? Exactly! Today’s dynamic IT environment provides opportunities for all kinds of businesses to develop and grow. Outsourcing IT services is one way many companies grow their operations with limited resources. So, if you do not have a strong IT structure, you have little to worry about, as your IT needs can be managed through an external party. While outsourcing can be very beneficial, it does have some risks attached to it. So whether you are a small business with few resources or a large company allocating existing IT staff to other tasks, depending upon your technical demands and business goals, you can select whether managed IT services are a strategic decision for you or not.
To simplify your decision-making, we have listed all the pros and cons of outsourcing managed IT services. Analyzing and aligning them with your business goals will give you the answer you seek.
Pros of Outsourcing Managed IT Services
Many small to medium-scale companies outsource their IT services [1], and even bigger companies sometimes make strategic decisions. There can be different reasons behind this, such as insufficient IT staff contribution to weak IT infrastructure, risk of security breaches, cost of hiring experts, etc. Not only do these reasons compel companies, but also due to the benefit it can give.
1. Lowered Costs
When it comes to software development, there are several costs associated with it. It can broadly impact your bank account, from hiring expert developers and building a diverse team to buying the technology and a support system, not to mention the time it takes to align all the resources to work on a single project. This may also increase your time to market the product or service, lowering the success rate. With outsourced managed IT services, your overall cost will be less than in-house development.
2. Robust Security
With advancements in technology, it is no wonder that cyber crimes have also progressed and increased. If a company does not have a proper IT infrastructure, it is easily liable to cyber attacks [2]. Although if you have outsourced your software, it has better cyber protection. Managed service providers have separate teams for each component of the project. Their cybersecurity compliance services team ensures the software has solid firewalls and backup systems. They also minimize the risk of downtime
3. Productivity and Efficiency
Having your IT services outsourced gives you a focused approach. You can work on your core competencies to develop and grow the company towards its goals. This will also help you allocate your resources to get the most out of them, increasing productivity.
4. Scalability
This also presents a great opportunity as you can focus on scaling your business with remotely managed IT services. You can start working on increasing your operations and customer base. You can look into different management systems you can implement to automate operations and grow your business.
5. Competitive Edge
Outsourcing can become a competitive advantage as your system will have the latest technology. Managed service providers have skilled professionals working with the best technology and resources. Your system will have frequent updates, quick support, and reduced downtime to help you retain your customers.
Cons of Outsourcing Managed IT Services
Any kind of return has risk attached to it. While managed IT service can reap higher returns, it can also lead to losses if it is not carefully planned. The managed service provider [3] must be thoroughly checked for good reviews and reputation. Otherwise, you may face risks such as;
1. Communication Gaps
It may not appear at the start, but communication issues can give you a lot of trouble in the long term. If your IT provider speaks another language and prefers different methods of communication, then it could hinder the scope, timeline, and integration altogether. You must be mindful of these issues before selecting a managed service provider.
2. Overpromise and underdeliver
Managed service providers sometimes overpromise results to get you on board with them. The final product needs to meet the expectations later. In this case, your investment can go bad. Hence before agreeing to a service provider, sign a Service Level Agreement [4] with them. This will have the expected requirements written on it and signed by both parties to uphold.
3. Lack of Control
It is no secret that once you give the IT project and support to a service provider, you will relinquish some control over the process and management. While if you develop in-house, you have greater control over the project with higher quality service levels. A third party will meet some of your requests, but they will majorly direct the project.
4. Limited Scope
You are spending a lot of money on outsourcing your system, and it will be devastating to hear that some requirements you have cannot be met. Unfortunately, outsourced systems have a limited scope of service. Your managed service provider will inform you beforehand about the applications and functions they can support. Hence, it is essential to sign a Service Level Agreement to clarify the scope of the deliverables.
5. Data Breaches
When you are outsourcing, this means that you will be sharing the company’s confidential information with other individuals. This is a security risk if that information leaks or a breach in their system alters the data. Although managed service providers have robust security, it is a risk to be considered.
Conclusion
Outsourcing can be a benefit or a loss for you. You need to evaluate the strengths and weaknesses of your business and align them with its goals. Once you have aligned them, it will be clearer if outsourcing managed IT service is the right choice for your company. This will also factor into its success in the long run.
FAQs
1. Should a company go for managed IT services?
A company can outsource managed IT services to reduce costs, increase productivity, focus on its strengths, and become efficient. This will also make it better at allocating resources to other important tasks while helping grow the business.
2. What is outsourced managed IT services mean?
This is when a company hires a third party to manage its technical requirements and needs. The third party has the technology and vast resources to develop a solution.
3. What is the most significant disadvantage of outsourcing managed IT?
There can be several things that could be improved when it comes to outsourcing managed IT. The most significant disadvantage varies from company to company, depending on the nature of their business. Confidentiality might be the biggest risk to an accounting company if they go for it.
4. Is outsourcing IT cheaper?
For small companies, it is cheaper to outsource IT, as investing in the whole infrastructure will cost a lot more. They can easily manage their operations when IT is outsourced. This also means they get professionals to work on the system with the right tools.
References:
[1]https://www.indeed.com/career-advice/career-development/examples-of-it-services
[2]https://www.simplilearn.com/tutorials/cyber-security-tutorial/types-of-cyber-attacks
[3]https://www.smbsolutions.com.au/it-magic-understanding-the-true-scope-of-an-msp/
[4]https://www.techtarget.com/searchitchannel/definition/service-level-agreement
