Small business information technology (IT) outsourcing is the practice of hiring third-party companies to handle tech needs. This approach helps small businesses access specialized expertise without the cost of in-house teams.
In our blog, we’ll cover the benefits of IT outsourcing for small businesses, the different types of services available, and the best agencies for outsourcing projects.
Table of Contents
What Is Small Businesses IT Outsourcing?
Small business IT outsourcing involves everything from setting up networks to software development and cloud services. For many small companies, outsourcing IT allows them to prioritize core operations without worrying about technical issues. It also offers flexibility, as businesses can scale IT services based on their needs.
What Do Small Businesses Need IT Outsourcing?
IT outsourcing is indispensable for small businesses, particularly for new companies. It allows them to focus on running the business while entrusting IT-related worries to third-party experts. SMBs often face budgetary and HR limitations that make IT outsourcing the best possible choice.
Besides cost savings, IT outsourcing can also be helpful when internal teams aren’t delivering optimal services — whether due to being understaffed or lacking the expertise 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 rise of remote work. As more employees work remotely, data services are going cloud-based, eliminating the need for in-house IT staff. Managed service providers (MSPs) with extensive knowledge and experience in cloud-based servers offer optimized services to organizations of all sizes 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:
- Cost control
- Focus on the core competencies
- Increased security
- Leverage knowledge transfer
- Handle rare problems and situations
1. Cost Control
Setting up and maintaining an in-house IT team can be too expensive and well beyond the means of growing SMBs. Outsourcing provides high-quality IT services at cost-effective rates for these businesses.
2. Focus on the Core Competencies
For small businesses, especially startups, focusing on core competencies is crucial. IT tasks can distract from what matters most to your business’s survival — increasing sales, improving quality, and enhancing customer service. Outsourcing IT allows you to concentrate fully on these areas.
3. Increased Security
Businesses face significant challenges with cybercrime and data security. Defending your business against cyberattacks needs advanced tools and skills. On a small scale, achieving professional mastery of IT security isn't easy. If you can’t effectively handle these threats in-house, outsourcing is critical.
Combating cybercrime requires top talent, along with state-of-the-art tools and techniques. Outsourced IT providers offer comprehensive IT strategies, training, and support to protect your business.
4. Leverage Knowledge Transfer
As small business owners, keeping up with technological developments can be challenging. Outsourcing IT services allows you to benefit from knowledge transfer. The providers can keep you updated with the latest innovations and train your people to use technology better.
5. Handle Rare Problems and Situations
An in-house IT team can be efficient for common IT issues but may struggle with unusual, complex, or unpredictable challenges. Outsourced IT services have a wide range of experience and can call on their diverse experience, skills, and knowledge from working with a variety of clients. So, when there is something new and unique to handle, relying on providers with experience is often more effective.
5 Types of Outsourced IT Services for Small Businesses
The types of IT services that can be outsourced are categorized as follows:
- End-user support
- Infrastructure
- Cloud services
- Business consulting and management
- Software and applications
1. End User Support
Small businesses often have small teams and limited hardware. An IT help desk or an end-user support service can be beneficial for these companies. SMBs can also choose a break/fix agreement, where each service is billed separately.
Outsourcing a help desk or similar end-user support is a basic but essential IT service. It is usually included in broader MSP packages.
2. 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 and time and reduces hassle.
An Infrastructure-as-a-Service (IaaS) solution can cater to all your fundamental IT requirements, including server, storage, operating software, and networking. By outsourcing, small businesses can avoid the costs of purchasing hardware and paying costly installation and maintenance fees.
3. Cloud Services
With the rise of remote work, small businesses increasingly need cloud services. Managed service providers can offer access to cloud services such as VPNs, file servers, disaster recovery, and various kinds of backups.
Cloud-hosted services can also provide superior cyber security than locally hosted infrastructure. Services like firewalls and built-in network security help manage the risks and complexities of remote work.
4. 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 can be costly to execute in-house without a chief information officer (CIO).
Outsourcing business management solutions is an effective way for small businesses to access services including IT consulting and email and messaging solutions. Reputable MSPs also offer virtual CIO services, giving you on-demand access to professional IT advice without unnecessarily high costs.
5. 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 that aligns with your unique business requirements and offers excellent ROI.
Alongside software licensing, many IT outsourcing providers offer software and web development services, mobile app development, and eCommerce solutions.
Best Small Business IT Agencies for Outsourcing
The following are some of the top small business IT agencies for outsourcing you should consider:
1. Westside Virtual
- Location: 445 W. 50th St., 4W, NEW YORK, New York 100196521, United States
- Average Hourly Rate: $95
- Expertise: Business Consulting, Web Design, Website Development, WordPress Development
Westside Virtual is a web design company backed by years of experience in design, programming, and business. The agency specializes in WordPress design, catering to businesses of all sizes, including startups and non-profit firms. Its expert solutions are tailor-made, affordable, and visually outstanding — striking the perfect balance between an eye-catching front-end and a high-tech back-end.
Westside Virtual also offers website audits, monthly maintenance services, and technical support.
2. The Little Web Design Shop
- Location: 1102 Cotton St, Mount Olive, Mississippi 39119, United States
- Average Hourly Rate: $35
- Expertise: Web Design, B2B Website Design, Responsive Website Design, eCommerce Web Design
The Little Web Design Shop helps small businesses grow and develop an online identity and brand that will drive long-term success. The agency assists in designing logos, putting together business plans, purchasing domains, and setting up social media accounts.
Its team actively participates in client decision-making and serves as a great sounding board for different ideas and concepts. The Little Web Design Shop supports businesses at every stage, providing help with marketing, sales, and branding.
Its notable clients include TFSMall.com, City of Purvis, Pristine Auto Spa & Service Center, and SiteTraxx.
3. Badlander Digital
- Location: P.O. Box 425, Terry, Montana 59349, United States
- Average Hourly Rate: $50
- Expertise: Branding, Graphic Design, Print Design, Digital Marketing, Web Design
Badlander Digital understands that building an interactive site to empower a business starts with a one-of-a-kind personal interaction and deep dive. This approach ensures insightful, high-quality results that build lasting trust in their services.
All the sites it builds are hosted, exceed standards, and are integrated with SEO from the get-go. The agency begins with a user plan based on several pages, and then builds from that, all while implementing the best SEO practices.
Clients include J & M Distribution, Big Time Contracting, Stagg Honey, and Village Laundry.
4. My Super Site
- Location: Nadejda, Sofia, 1000, Bulgaria
- Average Hourly Rate: $50
- Expertise: Web Design, WooCommerce Development, Responsive Website Design, Real Estate Web Design
My Super Site is a web design, web development, and marketing company that prioritizes strategy in all its services. The agency focuses on creating websites for its clients that drive targeted traffic and convert visitors.
With its experience in website development and optimization, My Super Site ensures that every aspect of the website is designed to deliver results.
Clients include MONQ Bulgaria, Jump Data Ltd., Faust Pain, and Hedra.
Outsourced IT for Small Businesses Takeaways
Outsourcing IT services is essential for small businesses aiming to stay competitive. It offers access to specialized skills and helps businesses operate more efficiently.
Through IT outsourcing, organizations can focus on their strengths, cut costs, and streamline operations. Knowing which activities to keep in-house and which to outsource is key to maximizing efficiency.
Partnering with a reputable IT service provider is crucial for ensuring the success of your outsourcing efforts. The right agency will not only manage your technology needs but also guide you through the process so you can achieve long-term growth.
