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The Most Important IT Outsourcing Advantages And Disadvantages You Need To Know

September 5, 2023
Reading Time: 6 mins
Author: Katherine Spanner

Regardless of their industry, 50% of businesses outsource their IT in some capacity. Much of this is driven by an increase in technology demands alongside gaps in internal expertise. However, you can also fill this gap by hiring new staff instead of outsourcing to a third-party. So, what are the benefits of IT outsourcing that 50% of companies are seeing?

The biggest one is expertise. Outsourced IT professionals are already trained to deal with business environments. There will be an onboarding process, but you won’t have to spend time and money training a new employee.

This doesn’t mean IT outsourcing is without its risks. Any savvy professional knows that understanding the possible pitfalls is just as important as recognising the benefits of any service. For this reason, we’ve put together this guide to IT outsourcing’s pros and cons that should help you make an informed decision about whether to outsource or just hire.


"Investing in IT outsourcing services is a cost-saving, strategic move.You’ll acquire top-tier expertise without the commitment of a new hire and your new expert partners can help refine your business for the modern digital landscape."  - Nelson Sigar, Chief Operations Officer, Sensible Business Solutions


4 Advantages of Outsourcing IT Services


1. Better Long-Term ROI

A lot of people assume that outsourcing IT services is more expensive than just hiring someone. However, if you look at the big picture, IT providers are significantly more cost-effective.

Think about the IT value for your spend. Ironically, businesses that we’ve spoken to who report wasting the most money spend the least. This is because cheaping out on your IT is more likely to land you with IT problems that require support, repairs, and lost productivity.

A good provider will be able to help you make better use of your budget. They can use their years of experience and expertise to pinpoint spots where you can improve processes and procure better solutions.


2. New IT Insights

It’s easy to assume “if ain’t broke, don’t fix it.” The problem with that attitude is that a functional IT system isn’t necessarily a good one. While your current system might get the job done well enough, there could be a lot of unrealised value that never comes into fruition.

You shouldn’t settle for “good enough,” but we also realise that a lot of people do so simply because they aren’t aware that there is a better option. An actively engaged outsourced IT provider can give you that fresh set of eyes to recognise what you might be missing. This will only make your IT ROI better in the future.


3. More Time to Focus on Your Core Business

If IT isn’t your job, you shouldn’t waste your precious work hours on it. Yet, that’s exactly what far too many executives at far too many SMBs wind up doing. Wasting this time takes away from other areas of your business and can ultimately stunt your growth.

Outsourcing IT is an excellent way to free up that space. Even if you have an in-house team doing that work instead, you can still outsource those pesky daily maintenance tasks so they can work on something more exciting. This helps your growth and increases their job satisfaction.

However, you can’t reap this benefit if your current MSP is difficult to manage. Time wasted managing your MSP might as well be time wasted doing it yourself. Seek a partner who can truly demonstrate their ability to work independently without keeping you in the dark.


What Else Should You Know to Help You Make a Decision?


4. Less Risk of Accidents

Human error is a risk as long as humans are involved. However, seasoned IT experts will have the training, documentation, and systems in place to reduce human errors.

In this sense, a high-quality provider is a safe bet if you’re dealing with high-stakes data. Yes, your IT trainee will become a seasoned veteran eventually, but do you really want to risk a misstep in the meantime?

It’s quite common for companies to supplement their IT department with outsourced services. Ensuring top-tier maintenance and network protection while their in-between hires or getting someone up-to-speed is one of the many reasons why.


4 Risks of Outsourcing IT Services (And How to Avoid Them)


1. Less Control Over Your System

Some forms of IT outsourcing, such as managed IT services, take full control of your IT network. You need to be sure that you trust them before you hand over the reins. A lot of people are hesitant to be hands-off, especially if they deal with people’s personal information.

This precaution is understandable, but it also highlights the importance of choosing a trustworthy provider. Not all IT services are cut from the same cloth, so it’s important for you to do your research and ask the right questions to make sure you find someone you can trust.

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2. Employee Morale

If you’re bringing in outsourced services after you’ve hired a full IT team, some of your employees may fear for their jobs. This can lead to lower morale, which can ultimately lead to poorer performance from said employees.

Show your team how outsourced IT will make their jobs easier, not replace them. Get your IT leaders involved in your communication with your outsourced provider. This will help show that they’re not a threat and help the provider recommend more practical IT solutions.


3. Cyber Security Risks

Trusting a third-party on your network means trusting them to maintain your cyber security standards. Many providers offer cyber security services of some form, but that doesn't automatically mean they’re a secure entity.

Look beyond how they will protect you and ask them how they protect themselves. A shockingly high number of data breaches originated from a third-party on the victim’s network. Their robust security measures aren’t worth much if they’re the source of the issue. Pry into how and why they won’t be.

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4. Communication Complexities

Adding more people to your network means more people for you to keep in touch with. It’s important for you to stay in the loop with what your provider is up to. You don’t need to know all the ins and outs of their processes, but you do need to understand their delivered results.

A good IT partner will take the initiative to reach out on a regular basis. Make sure you choose someone who prioritises transparency and is open to feedback. You can usually spot the bad apples during discovery. Dodge candidates who dodge questions. You’ll thank yourself later.


How Do I Know IT Outsourcing is Right For Me?

Most organisations from any industry can benefit from IT outsourcing. However, not every individual business is ready to partner with an IT service provider. There are some cases when hiring an internal employee is a better option.

However, this doesn’t mean that you’ll never need outsourcing services. Things can change, your business can grow, and your hired employees might end-up needing a hand. If you’re wondering where you’re at, here’s a chart showing when to choose outsourced services vs. a new hire or a combination of both.


Your Situation

IT Outsourcing

A New Hire

A Combination of Both

You Have Tight Budget Constraints



You Need Access to a Wide Range of IT Skills




You Require Deep Knowledge in a Highly-Specific Niche Area, Only Relevant to Your Individual Business




You Have a Large Project or Multiple Projects




You Have One Small, Manageable Project




You Need Quick Project Completion




You Have Time to Recruit, Train, and Integrate a New Employee




You Don’t Have a Lot of Time on Your Hands



Your IT Needs Tend to Fluctuate




Your IT Needs Tend to Stay the Same





Outsource Your IT to a Business-Savvy Provider

Whether you’re supplementing your IT department or fully outsourcing your tech tasks, picking the perfect provider is important. Seek someone who offers a broad, yet comprehensive range of services alongside the right amount of business-savvy to make practical decisions.

Sensible Business Solutions strives to be that perfect provider. We boast a healthy balance of tech, business, and people skills so we can offer an IT service experience that stands above the rest. We also provide empathetic support staff who can take care of any IT issue that may arise.

Contact us today to see if we’re right for you.


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