Pros and Cons of Outsourcing Your Business Technology
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 and Cons of Outsourcing Terms List
The Pros List
Cost and efficiency savings – Streamline your operation and get things done more quickly 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 ensures 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 a team.
Leveling the playing field – Act like the big guys. Use technology so your small business can compete in this quickly changing world.
The Cons List
Pay for the service even if you don’t use it – Everything running well? Well, 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 you 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.