Outsourced IT for Small Businesses: Needs, Benefits, and Types of Services to Outsource

With IT becoming a significant part of our lives, outsourcing IT services will become more prevalent. The IT outsourcing market is predicted to grow by 6% annually till 2022, which indicates that outsourcing is here to stay and expand.

For small businesses trying to find their feet, the management of IT is a challenge. You could miss enormous benefits if you take the time to evaluate the ideas. The question arises whether and how outsourced IT for small businesses will help.

This article highlights what outsourcing IT means for your business and how you can benefit from it.

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What is Outsourced IT for Small Businesses?

IT outsourcing involves hiring an external company to manage an organization’s technology infrastructure. This includes hardware, software, network, and user support. The services are delivered by a company known as Managed Service Provider (MSP), and it might contract with several clients in a particular area.

If you own a small business, hiring an in-house IT team can be costly, mainly when the average salary of an IT professional in the US is more than $50,000. On the other hand, IT outsourcing helps in a team’s upskilling.

The outsourcing team is available 365 days a year, offering top-quality expertise at a fixed monthly rate and working closely with the clients.

What is the Need for IT Outsourcing for Small Businesses?

IT outsourcing is indispensable for small businesses. New companies significantly benefit as they can keep their core focus on running the business and leave IT-related worries to the third party. SMBs often have budgetary and HR limitations that make IT outsourcing the best possible choice.

Besides cost savings, IT outsourcing can be helpful when the internal team is not providing optimal services. It might be because the team is too small or lacks the ability to onboard new technologies or execute long-term projects.

IT outsourcing, however, is not just for small businesses. Large enterprises also benefit from IT outsourcing, especially after the proliferation of the remote work environment.

With more employees working remotely, data services are going cloud-based, eliminating the need for internal IT staff. Managed Service Providers with extensive knowledge and experience in cloud-based servers promise small to large organizations with optimized services at a much lower cost.

5 Benefits of Small Business IT Outsourcing

The following are some of the apparent benefits of IT outsourcing for small businesses:

1. Cost Control

It isn't easy to achieve the economies of scale that an outsourced IT service can. Setting up and maintaining an in-house IT team is well beyond the means of the growing SMBs. It isn't easy to achieve the economies of scale that an outsourced IT service can. Therefore, thea small business's costs for in-house IT services are prohibitive for a small business. Outsourcing promises high-quality work at cost-effective rates for these businesses.

2. Focus on the Core Competencies

Focusing on the core areas is crucial for small businesses, especially ones in start-up situations. People and effort must be fully engaged with the core activity, and resources and IT services are distractions from what is more important.

Your business survival depends upon increasing sales, quality improvement, and attention to customer service, and outsourcing allows you to emphasize these.

3. Increased Security

Businesses face significant challenges in the form of cybercrime and data security. Defending your business against attacks from sophisticated technology users needs advanced tools and skills.

Outsourcing is critical if you cannot effectively respond to threats. On a small scale, achieving professional mastery of IT security isn't easy.

Combating cybercrime requires the best minds, along with state-of-the-art tools and techniques. Outsourced IT providers with comprehensive IT strategies can train, support, and retain these talents.

4. Leverage Knowledge Transfer

You might already train people to use IT as small business owners. However, keeping up to date with technological developments might seem challenging.

Working with an outsourced IT service provider offers the scope for knowledge transfer. The providers can help you keep updated with the innovations in the field. They can, from time to time, train your people to use technology better.

5. Handle Rare Problems and Situations

An in-house IT team can be very efficient in supporting the IT systems. Their in-house experience helps resolve common issues, but the problem arises with the more unusual and unpredictable challenges.

Outsourced IT services have a wide range of experience and can call on diverse experience, skills, and knowledge. Their expertise comes from their experience of working with a variety of clients.

So, when there is something new and unique to handle, it is better to get it fixed by providers with access to that experience.

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5 Types of Outsourced IT Services for Small Businesses

The types of IT services that can be outsourced are broadly categorized as follows:

End User Support

Small businesses have small teams using minimal hardware. It would help if you had a help desk or an end-user support service for such companies. SMBs also have the option of going for a break/fix agreement in which each job or service delivery is billed separately.

A help desk or similar end-user support is the bare minimum but essential IT service to outsource. It is usually a broader part of the MSP packages.

Infrastructure

IT infrastructure refers to a wide variety of hardware and software components in a business’s technology systems. Outsourcing infrastructure services saves a lot of money, time, and hassles.

An infrastructure-as-a-service or IaaS solution can cater to all your fundamental IT requirements, including server, storage, operating software, and networking. By outsourcing, small businesses can save the hassle of purchasing hardware or software or paying the costly installation and maintenance fees.

Cloud Services

With remote working in trend, small businesses feel the increased need for cloud services. Managed service providers can offer access to cloud services such as VPNs, file servers, backup, and disaster recovery.

Cybercrimes are also rising, and cloud-hosted services can provide superior cyber security than locally hosted infrastructure. Services like VPN, firewalls and built-in network security eliminate the risks and complexities of remote working.

Business Consulting and Management

Apart from core IT and application development outsourcing, small businesses can seek a wide range of business management services from MSPs. Proper IT business management is critical, but it can be costly to execute in-house without a CIO.

Outsourcing business management solutions is an effective way for small businesses to get all the necessary information. The services include everything from IT consulting to email and messaging solutions. Reputed MSPs also offer virtual CIO service that comprises on-demand access to professional IT advice without unnecessarily high costs.

Software and Applications

Managing software licenses and subscriptions can significantly increase costs if small business owners are unsure of what they need. An expert MSP team formulates a comprehensive yet affordable software package for your business. It aligns with your unique requirements and promises an excellent ROI.

Alongside software licensing, many IT outsourcing providers offer software and web development services, mobile app development, and eCommerce solutions.

Outsourced IT for Small Businesses Takeaway

Summing up, small businesses need to outsource IT services. Outsourcing turns out to be a source of competitive advantage.

Outsourcing, in general, is a crucial way to grow your business, reduce expenses and maximize efficiencies. You must decide what you are best at doing and what you should let go and outsource.

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