What is an outsourced IT service?
It’s amazing just how far technology has developed in a relatively short space of time. You have to look back to the 1950s to find the first use of computers in a business/commercial environment. Fast forward to today, and you’d be hard-pushed to find any company that isn’t reliant on some degree of IT.
As companies place an increasing reliance upon their IT and its infrastructure, they tend to run into the same issue: in-house IT skills aren’t sufficient to match the demands of today. When a company hits this stage, they face a couple of choices. They can either invest heavily in up-skilling and/or employing new members of staff, or they can explore an outsourced IT service as a solution.
For many businesses, it’s the outsourced IT service that addresses their needs best. We’re going to explore just what is meant by an outsourced IT service before we go on to explore the pros and cons.
What is meant by “outsourced IT service”?
Outsourcing is not a new concept when it comes to running a business. In fact, just last year, 71% of UK businesses said that they intended to outsource to cut costs. While it’s common to outsource the likes of call handling, date-entry, and a host of other tasks that your business may do daily, it’s becoming more and more commonplace to outsource IT needs.
An outsourced IT service works the same as other forms of outsourcing. It sees a business hiring a third party to manage all its IT needs. Those who provide an outsourced IT service are known as managed service providers (MSP) and they can assist with the likes of:
- Network security
- Backups
- Software installation
- Implementing operating systems
- Hardware Disposal
There are some businesses that opt to call out a technician whenever IT issues arise. This leads to a third-party entering your business before diagnosing and hopefully fixing the problem. Usually working according to an hourly rate, these technicians don’t know your business and they simply work at a pace that suits them. This generally translates to the service being expensive. This is very different to how an outsourced IT service works.
By choosing to work with an MSP, a business pays a monthly fee. This will prove to be much more cost-effective. As well as dealing with any fixes, your MSP will also be monitoring your network on a constant basis. They aim to identify things before they become an issue. This prevents downtime and keeps your business running, effectively
What size companies benefit most from an outsourced IT service?
The reality is that companies of any size can benefit from an outsourced IT service. However, it tends to be the case that larger organisations don’t go for this option. That’s because they have the resources that are needed to build an in-house IT department.
Many SMEs simply don’t have the budget to follow the example of larger businesses. That’s why they tend to benefit the most by engaging with an MSP. They then get to focus on the growth of their business knowing that their IT needs are all taken care of.
What IT solutions can be outsourced?
An outsourced IT service is there to take the strain of your computing needs away from your IT department or yourself. The solutions that they offer fall into two categories:
IT Infrastructure
As your business grows so do your IT requirements. Generally, business growth would lead to you needing your in-house department to expand and to be filled with high-tech hardware. With an MSP there is no longer a need for this. Any complicated hardware is dealt with by the MSP while everything is kept simple for the end-user.
Software
Many businesses experience difficulties when it comes to software. That’s because there is often the need to update this as well as ensure that it’s synchronised company-wide. With an outsourced IT service, your software requirements are also taken care of meaning that you no longer need to worry about updates. You can be sure that your team is always working with the most up-to-date versions that exist.
What’s included in these categories?
Of course, the two categories that we’ve looked at above are extremely broad. For that reason, it’s useful to look at some actual examples of where an outsourced IT service can assist. With that in mind, here’s a look at the most common solutions:
Network security
Cyber-attacks are on the up. It’s not just about big business. Those behind such attacks have much to gain by targeting smaller businesses which are, generally, less well-protected. When you take advantage of an outsourced IT service then you can have confidence that your security needs are being taken care of.
A breach of your network can have a devastating impact on your business and for this reason alone an MSP can be shown to provide fantastic value for money.
Network implementation and maintenance
Dealing with, and updating, system programs are tasks that many SMEs aren’t fans of. That’s because they are more than just a little confusing and they also drain time and resources. If you want to just get on with what you do best, it makes sense to utilise an MSP so that you can do just that.
Troubleshooting
The reality is that issues will arise with your IT. When you’re using an outsourced IT service, you can be sure that these will be dealt with. An expert from your MSP will contact your staff and take them, step-by-step, through a fix. This means that any system updates or problems to do with your network can all be resolved with ease.
Backups
Cloud storage has been utilised by larger companies for some time now. It has also become commonplace for SMEs to move their data and files into the cloud. This means that files are kept safe but can also be accessed easily. An outsourced IT service can take care of this on your behalf.
The benefits of an outsourced IT service
There are a whole host of benefits that can be tapped into by using an outsourced IT service. Here’s a look at just a few of them:
Money saving
Qualified IT staff don’t come cheaply. You can get an idea of what it would cost you to assemble a time by looking here. For most SMEs, building an effective IT team is cost prohibitive. The wages become a drain and start to impact other areas of the business. An outsourced IT service is significantly cheaper without jeopardising quality.
Stay within budget
If you decide to call in IT technicians on an ad-hoc basis, the truth is that you have no idea of what you’ll be spending from one month to the next. No one can predict what IT issues may arise and no one can predict how much these will cost to fix. An outsourced IT service gives you a set monthly fee and means that you can budget.
Access to experts
If you assemble your own IT team, you will find that different members have different specialities. Trying to form a well-rounded team that can deal with all your needs can be difficult, to say the least. With an MSP you have access to experts that have the know-how to deal with whatever issues your business may face.
Reduced training
When you take on IT staff, there’s a need to keep these members up to date with any changes. That means that you can expect to need to fund various forms of training. By using an outsourced IT service, you can be sure that the people dealing with your IT are always bang up to date with changes and that you’re not responsible for their training.
Avoid recruitment difficulties
If you already work within the field of IT, then there’s a good chance that you’ll know exactly what you want from any new members of your team. However, if you operate in other sectors, how detailed is your knowledge? Do you know what you need to be asking as part of the interview process? Do you know the answers that you need to hear? An outsourced IT service does away with all these worries.
The best experience
Imagine your own in-house IT team. What happens, over several years, is that this team becomes somewhat isolated. That’s because the team becomes accustomed to dealing with the same problems repeatedly. Once something new crops up, the team lacks the experience needed to deal. An outsourced IT service gives access to the experience that your business needs.
Keeping customers on-side
When IT fails, the customer experience suffers too. Customers aren’t to blame if your systems are down or if they can’t contact and they will only forgive so many times. An outsourced IT service will reduce the risk of downtime, and, in return, you can improve your levels of customer service.
Are there any downsides to an outsourced IT service?
There are potential risks associated with an outsourced IT service. However, the reality is that these can be avoided by ensuring that you only work with an established and proven MSP. Just some of the watchouts to be aware of include:
Now, we’ve already spoken about how an outsourced IT service will improve customer service by minimising downtime, so why have we included this here? Well, that’s because there are providers out there that aren’t adequately staffed. This means that your issues aren’t dealt with immediately as you’re left waiting for a technician to become available.
Security
Again, the right MSP means that your security is never at risk. However, if you work with a less reputable provider or approach companies overseas that don’t comply with UK regulations, you are putting your business at risk.
Upselling
When it comes to an outsourced IT service, providers should get to know your business and work with what you have. While there may be times that you need to upgrade equipment, this shouldn’t be the norm. Unscrupulous MSPs will focus on selling you equipment that you don’t really need. This boosts their business while harming yours.
Lack of flexibility
Poor providers will require you to use proprietary software. When this happens, businesses tend to find themselves a little stuck and unable to move away. The right provider will never cause some issues so it’s vital that you know what a quality MSP looks like and that you know the questions that you need to be asking before you sign up.
When does an outsourced IT service become the right option for you?
Having looked at the benefits offered by an outsourced IT service; you may be wondering when you will recognise that it’s the right option for you. Here are some of the factors that need to be considered:
- You have no in-house IT – Your company may be too small to justify an IT department. When this is the case an outsourced IT service is the perfect solution.
- Your in-house IT department is drained – If your in-house IT team is drowning then an MSP can offer the support needed to keep them afloat.
- You want to cut costs – An outsourced IT service will ensure that you save money.
How we can help
If you believe that an outsourced IT service is right for your business, why not get in touch to find out more? We can assist you to find the best options that are a perfect fit for your organisation.
