Outsourcing IT Vs. In House: Why Small Businesses Are Jumping on the Former

There are quite a few reasons for the growth of the IT outsourcing trend among small businesses, but the most common are lower costs, improved access to technology, and IT skill shortages1 that make it more beneficial to outsource. With more and more businesses making the move, this is a great time to compare outsourcing IT vs. in house.

For small businesses, cost savings are the primary reason to take the plunge. But once you look closer, you find a smorgasbord of ways that small businesses massively benefit from outsourcing IT. For one, outsourcing provides strong cyber security advantages. When you look at the damage one security breach can do to a small business and the costs associated with overcoming it, outsourcing to security expertise emerges as the smart move.

Let’s take a closer look at the benefits of outsourcing IT versus in house by comparing the costs, time, and risk of each to get an accurate picture.

An Easy Way to Realize Cost Savings

There are some stark differences between the costs associated with in-house hiring versus outsourcing. Organizations that hire for in-house positions must pay for salaries, insurance, onboarding, training, and hardware/software expenses that can really add up. These expenses may be even more difficult for small businesses to absorb, especially during the first few years of existence. 

Another outsourcing benefit comes in the form of flexible pricing. Managed services providers (MSPs) – often the experts small businesses turn to for outsourced IT – offer flexible user-based pricing instead of traditional device-based pricing. Small businesses can ensure all their devices are covered for one flat-fee per-user price. If companies have more devices to protect than users, these pricing plans provide even more savings.

Small Businesses Have a Great Time Saver Within Reach

Organizations that rely on in-house employees spend an inordinate amount of time on training and onboarding responsibilities. It may take weeks or months to get a new employee set up to contribute to a team.

The general consensus among HR professionals is that proper onboarding takes at least three months2. And once you add in proper training time needed to get an employee up to speed, you’ve invested quite a bit of time per new employee.

Outsourcing all or part of your IT responsibilities saves time. Once you contract with an MSP, you can immediately pass many tasks onto their plate and use that time on mission-critical projects. You also save time by lessening project management requirements. This means no need for prolonged planning and review meetings3.

The Preferred Way Small Businesses Minimize Risks

Outsourcing some or all of your IT lessens risk. Once an MSP is in the fold, the primary responsibility to keep up with advancing technology and implement more efficient processes falls on their shoulders. This results in less risk for the business, as they don’t have to decide on which platforms and technology to invest in and which to bypass.

Additionally, organizations that outsource don’t have to risk investing time and money bringing in new employees that aren’t qualified or become disenchanted with their job and leave after a few months.

These are just a few of the reasons why outsourcing is becoming more mainstream. A study conducted by PR newswire in 2019 showed that 37% of small businesses outsourced at least some of their IT responsibilities, and that number was expected to grow to 52% over the next year4.

Want to Know How Outsourcing Can Benefit Your Business? We Can Help.

The outsourcing trend shows no signs of slowing down. If your organization is considering outsourcing some or all of your IT responsibilities, contact us today. Xceptional offers a free network assessment that shows how your networks fare in terms of technology and security and how upgrades may improve overall performance.

Sources cited:

  1. https://medium.com/@inverita/it-outsourcing-trends-and-statistics-for-2020-2d5bedac806b#:~:text=As%20reported%20by%20Statista%2C%20the,by%201.6%25%20the%20same%20year.
  2. https://www.bamboohr.com/blog/how-long-should-onboarding-take/
  3. https://www.entrepreneur.com/article/326492
  4. https://www.prnewswire.com/news-releases/52-of-small-businesses-plan-to-outsource-in-2019-most-commonly-for-accounting-it-services-and-digital-marketing-tasks-300871057.html.

By justine

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