Outsourcing your IT Overheads

Despite the term ‘outsourcing’ originating in the 1970s, businesses continue to regard outsourcing as a contingency plan.

However, in truth, outsourcing is the smarter option – it is the key to achieving agility, flexibility and profitability, while focusing on what’s relevant. It’s the gateway to growth, innovation, strategic breakthroughs and changes in the status quo. Why? Because it removes the burden of non-essential costs and functions, freeing organizations to innovate for customers and stay ahead of the competition.

From a cost center to a growth catalyst: Reshaping your IT operations through outsourcing

Cost savings and optimization are the main goals of businesses operating in volatile environments. Companies are now more focused on cost savings and spending money only on important ventures to ensure long-term sustainability and resilience. In order to do this, eliminating or reducing fixed cost commitments is mandatory and has thus become a significant part of an organization’s strategy. Thereby, businesses are empowered and free to invest in innovation, research and development.

So, what can be outsourced? ANYTHING.

Anything that isn’t your core business can be outsourced, including IT, HR, accounting, tax-related work and logistics.

Many companies choose to outsource because they understand its benefits, from cost savings and efficiencies, to having access to a wider range of experts at a lower cost. Outsourcing enables companies to concentrate on their core competencies, which will drive growth.

Why should companies outsource their IT operations?

Outsourcing your company’s IT operations can pave the way to significant cost savings in terms of personnel, equipment, storage, maintenance and security.

  • Access to experts and the latest technology at a lower cost

Employing in-house IT personnel can be expensive, which may limit you to a handful of experts (or one). Your in-house IT staff will also have to spend a significant portion of time researching issues and fixing them, leading to inefficiencies and higher costs.

Outsourcing your IT operations to a renowned and capable service provider will give you access to a larger and diversified pool of qualified and experienced technical experts.

  • Lower employee costs

The right employees are your greatest asset, but they may be too expensive to hire, manage, take care of, train and develop. Employee costs, both forecasted and unexpected, could make a large dent in your budget.

By outsourcing your IT requirements, you will be saving on these costs, as well as the time and effort required to deal with issues like turnover. An established IT service provider will expertly handle hiring, training and managing IT employees, and undertake for all employment costs.

  • Consistency in delivery without surprises

If there is one consistency in technology, it is unpredictability – updates happen, systems get outdated, issues arise and equipment breaks down. Similar to a permanent employee, an on-call support engineer who can immediately address issues could potentially be very costly.

Opting for remote IT support through a Network Operations Center (NOC) or a Security Operations Center (SOC) from a dependable and reliable IT solutions provider will ensure that your company gets 24/7 support at a lower cost. It provides a simple and efficient way to operate seamlessly.

  • Agility via the flexibility to change resources

Outsourcing your IT services will also make your company more agile, as you can change support hours according to your requirement. For example, if your business is seasonal, your IT hours are easily adjustable to avoid wasting idling resources during off-peak times. If you need to scale down operations, you can simply reduce the hours, which will not be possible with an in-house team. Outsourcing can empower companies by lowering costs and increasing efficiency when scaling down operations.

In conclusion, outsourcing should not be your Plan B. It is a great way to save costs and ensure that you are focused on what matters: your core competencies. Businesses that outsource their IT operations will spend less, worry less, get better technical support and enjoy peace of mind to concentrate on their customers, giving the company an even better edge over the competition.

Dinuka Perera

CFO / Senior Vice President – Finance & Supply Chain