Why Should Small Businesses Outsource?

29 September6 min read
Why Should Small Businesses Outsource?

Isn't it true that as technology becomes more integrated into our daily lives, the decision to outsource IT services will become less common? Surely everyone will bring it in? With the IT outsourcing market expected to grow at a 6% annual rate until 2022, outsourcing is alive and well.

IT can be difficult to manage if you run a small business that is just getting started. Most successful small business ideas take time to evaluate, but failing to do so can result in significant losses. Should you outsource your information technology services? Continue reading to find out why outsourcing might be right for you.

Why Outsource IT?

Many entrepreneurs are familiar with outsourcing, which is the practice of using outside firms to handle work that would typically be performed within a company. Small businesses routinely outsource payroll processing, accounting, distribution, and various other critical functions, often because they have no other option. Many large corporations use outsourcing to cut costs. As a result, entire industries have emerged to meet companies' outsourcing needs.

However, few businesses fully comprehend the advantages of outsourcing. Outsourcing can save money, but it isn't the only or even the most important reason to do so. As many businesses discovered during the early 1990s outsourcing "mania," outsourcing too much can be a worse mistake than not outsourcing at all. The flat economy forced many companies to lay off large numbers of employees and outsource functions that should have remained in-house. But even so, strategic outsourcing could provide many long-term advantages:

  • Cost Reduction

It is expensive to train and retain in-house IT personnel. In the United States, the most essential IT Support Technicians earn around $50,000 per year. In larger metropolitan areas, the figure rises to around $70,000 per year. Setting aside labor costs, the costs associated with keeping a company's IT running (software licensing, backup programs, security software, network monitoring, and so on) can quickly add up. Acquiring, implementing, and maintaining computers, servers, firewalls, wireless connections, storage, and a slew of other components is expensive and can quickly deplete your company's resources. Outsourcing your IT can convert fixed capital costs into variable but predictable operating expenses, allowing you to budget more accurately. To summarize, you only pay for what you use.

  • Brand Loyalty

Outsourcing allows you to obtain highly trained IT personnel supported by management with decades of are supported by management with decades work expertise. Most small businesses would struggle to build such an incredible team from within; it would be costly and time-consuming.

Furthermore, outsourcing gives you access to senior professionals who can ensure that you always have somebody available who understands your primary focus. A dedicated specialist will put in long hours if necessary, so you will never feel ignored - even if you are dealing with problems at home or on vacation. Finally, we want to help you by providing superior services so that you may increase brand loyalty.

  • Risk Reduction

Every company faces some degree of risk. The lower a company's risk, the more likely it is to become profitable. The same danger exists for your data and IT systems. Your company should have actively managed firewalls like Bitdefender BOX, Cisco Firepower, Netgear ProSAFE, etc protecting its network, otherwise, chances are it will be the victim of a cyber-attack such as ransomware. With a diverse set of tools and experience, an outsourced IT partner can fortify your network against hackers (both internal and external) and protect your company's bottom line. Learn more about how our network security solutions can keep your network safe.

  • Disaster Recovery

While IT may not be your primary business, losing your IT services would likely harm your operations. The ramifications for your firm could be drastic.

What are the IT risks in your company? If you don't understand them, you may be unable to properly plan for an outage. You may also be unable to make proper arrangements to reduce the risk of failure. IT risk management is a service that can be provided by an outsourced IT service.

If a disaster strikes, information technology may be a part of the solution. Recovering from a catastrophic technological breakdown necessitates resources and expertise that are unlikely to exist in the IT functions of small businesses. If your telephone system fails, you may lose contact with all of your customers. Failure in your e-commerce operation could result in a halt in sales. A breach in data security could jeopardize your reputation or even lead to legal action.

You must have access to risk management and disaster recovery expertise.

Flexible and Scalable

One of the most difficult aspects of small business expansion is that it can cause a lot of "growing pains." Sure, more people are buying your products and services, but in many cases, this growth has caused some businesses to struggle to keep up.

But there is a simple solution! Use outsourced IT support services to eliminate the need to worry about these issues (and save even MORE money). On the other hand, what if things slow down during the off-season? You can easily cut back without sacrificing anything.

Experienced Professionals

Your company's documentation is one of its most precious commodities. Small businesses frequently hire one young, inexperienced person with more bookish knowledge than field experience due to cost. Without a mentor, this is a trial-and-error approach, which could lead to negative consequences for your company. Outsourcing your small business IT puts you in contact with veteran IT professionals with extensive experience who are committed to achieving your specific business goals.

  • Better Security

Today's businesses face significant challenges from cybercrime and data security. Cybercriminals are adept at using technology. Defending yourself against their attack necessitates advanced skills and equipment.

If you believe you are unable to effectively respond to this threat, you may need to outsource IT services. On a small scale, professional mastery of IT security is extremely difficult to achieve.

It is challenging to keep up with the latest tools and techniques. Attracting the brightest minds to combat these cunning criminals is also difficult. Outsourced IT services find it easier to recruit and retain this talent, as well as to train and support them on an ongoing basis.

  • Access to Latest Technologies

Outsourcing may be the best option for ensuring that your small business always has the most up-to-date technology.

Outsourcing ensures that an expert handles your business tasks, and these experts strive to use the latest technology and resources to deliver the best results possible.

Accounting and IT are typically outsourced by small businesses because they require expertise and skills. According to Fortunly Outsourcing Statistics for 2021, 37% of all accounting and IT tasks are outsourced. Digital marketing tasks come in second at 34%, followed by development and human resources at 28%.

Final Thoughts

Is it a good idea to put off outsourcing until we are frustrated and overwhelmed? No. You must learn how to work efficiently if you want to grow and scale your small business on the fly. You will also feel more confident in yourself, which will motivate you to improve your services. It will also make your customers happy, which will lead to more sales.

However, outsourcing does not guarantee business growth. To get the best results, you must hire the right people. As a result, you should conduct thorough research before accepting an offer. Before entering into an outsourcing agreement, you may be required to sign a contract and address several legal and security concerns.