Pros and Cons of Outsourcing Your Business Technology

Calculator

Every business is different, so you must carefully evaluate if outsourcing your IT is the right business decision. Sometimes it is a no-brainer, other times it’s a toss-up. We put together this handy dandy pros and cons list (see under calculator) to help get you started. Just plug in your values based on how important each one is to your business. 10=Very Important 0=Not Important

PROS
CONS
List
Enter a Value (0-10)
Enter a Value (0-10)
List
Cost and efficiency savings
Pay for service even if you don't use it
Focus on core activities
Lack of freedom to use multiple applications
Technical ability
Don't know my business
Continuity & risk management
Don't get to pick my own tech
Staffing flexibility
Not always onsite
24/7 technical support
Must update to latest applications
Certified professionals
Loss of managerial control
Fast-response times
Dependent on another company
Reduced overhead
Confidentiality
Operational control
 
 
No management time required
 
 
No training costs
 
 
Always available - no vacation
 
 
Level the technology playing field
 
 

Pros and Cons of Outsourcing Terms List

The Pros List

Cost and efficiency savings – streamline your operation and get things done quicker and at a lower overall cost.  Save up to 40% by outsourcing your IT.

Focus on core activities– Stop wasting your time trying to be an IT company.  Take that time and put it back into doing what you do best.

Technical ability – Get a team of experts instead of just one person.  It is hard to be an expert in everything plus keep up to date with all the latest and greatest.

Continuity and risk management – Unfortunately there is a high turnover rate with internal IT support.  Every time it seems like you must start over again.  Outsourcing provides long-term stability and consistency.

Staffing flexibility– Need to ramp support up or down.  No problem.  Great for short term projects.

24/7 technical support – get support when and where you need it.

Certified professionals – every in-house IT professional struggles with staying up to date.

Fast response times–Always there available by phone, chat, or remote access.  Don’t have to find or interrupt only in-house tech.

Reduced overhead – no benefits, taxes, or payroll

Operational control–Sometimes your IT person has the keys to the kingdom which is not always a good thing.  Outsourcing ensure standards, security, and oversight.

No management time required –managing an in-house tech can be very challenging if you don’t speak the same language.

No training cost– certifications and training can cost thousands for classes, materials, and time.

Always available – no vacation time – Don’t panic when your IT person goes on vacation.  We have at team.

Leveling the playing field – Act like the big guys.  Use technology so your small business can compete in this quick changing world.

The Cons List

Pay for the service even if you don’t use it– Everything running great?  We’ll great!  Sometimes it is hard to justify the cost if nothing breaks, but isn’t that the point?

Lack of freedom to use multiple vendors – Have a solution that you really like?  Better make sure it is supported.

Don’t know my business – you need someone on your team to be proactive and  help your drive technology in all aspects of your business.  Just supporting technology can fall short.

Don’t get to pick your tech – It’s nice to have someone you know, like, and trust to get the job done.

Not always onsite – If you don’t have a full-time onsite IT tech, you must wait for them, if the issue cannot be solved remotely.

Must update to the latest applications – You must have the current tools, patches, and versions.  Security increases but some users don’t like change.

Loss of managerial control – contracts may limit short changes quickly.  You may have to discuss before doing something you want to do.

Tied to the financial well-being of another company – dependent on another company that you do not control.

Confidentiality –You need to keep your information secure.  Although most security threats are actually internal.