How businesses can save money by outsourcing their IT
Although outsourcing has gained a rather mixed reputation in the press over the past few years, one area in companies where it has continued to grow in popularity is in IT Support.
Part of the reason is that the changes that organizations make to their technology implementation often necessitate a complete retraining of their existing staff, or a hiring consideration to bring one or more veterans of the new technology into the fold. In IT, it has therefore become the norm to see organizations augment their staff by outsourcing. It is simply too expensive to hire and maintain IT staff members for every project in the average company.
At least one Fortune 500 company outsources almost 100 percent of their IT staffing and has a long list of achievements within their IT department to match their reports that show that they have achieved a cost savings.
As you travel downward in size and scale of company, the maxim that IT outsourcing should be a part of your hiring equation is even truer. If you have one to ten IT workers on staff and are trying to implement a new technology or specific software project, it is important for at least two of your staff to understand the technology well enough to oversee the work that contractors do. Beyond that, it will probably always be more cost effective to bring outsourced staff on as needed for IT support.
Why is it more cost effective? Because many outsourced IT support agreements provide blanket coverage with even better service levels than you could achieve internally for a much lower price.
Why is the price less? Because you probably don’t require help every hour of every day for that particular technology. Instead, by either calling on an outsourced team or team member for help, you or your IT staff can get specific, immediate help, regardless of the product.
Another reason for the cost-effectiveness of outsourcing is that you may be hiring a larger organization that has much better benefit purchasing prices than you do. Alternatively, they may not offer their employees the same benefits that your employees receive, leading to lower overall costs to contract them over your in-house workers.
Finally, if you actually do try and go out and hire a specialist in an exotic technology that your finance or other department had to have, you might often find that market prices for certain technologies are much higher when you hire versus when you outsource.