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 areas of core competencies 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.
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.
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 using the services of software development companies or paying the costly installation and maintenance fees.
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.
Best Small Business IT Agencies to Outsource Projects to
- Location: 445 W. 50th St., 4W, NEW YORK, New York 100196521, United States
- Average Hourly Rate: $95/hr
- Expertise: Business Consulting, Web Design, Website Development, WordPress Development…
Westside Virtual is a web design company founded in New York City in 2014, backed by the founders’ years of experience in the fields of design, programming, and business.
They specialize in WordPress design, catering to businesses of all sizes, including startups and non-profit firms. Their 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.
- 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 to grow, succeed and to develop an online identity and brand that will take them info the future. They help clients design a logo, put together a business plan, purchase a domain, email and set up social media accounts.
Their team enjoys being part of clients' decision making and we make a great sounding board for different ideas and concepts. They work in all points of a company's lifespan. So where ever your business is at we can help with your marketing, sales and branding, they can help you to answer the question “Who are we?”
Clients include TFSMall.com, City of Purvis, Pristine Auto Spa & Service Center and SiteTraxx.
- Location: P.O. Box 425, Terry, Montana 59349, United States
- Average Hourly Rate: $50
- Expertise: Branding, Graphic Design, Print Design, Digital Marketing, Web Design
At Badlander Digital, they understand that building an interactive site to empower a business starts with a one-of-a-kind personal interaction and deep dive. The deep dive they provide will be insightful, leaving an enduring faith in their services and dedication.
All sites are hosted, build to exceed standards, and developed with SEO from the get-go. Starting with several pages they'll develop a user plan and build from that, as always making sure to use top SEO practices.
Clients include J & M Distribution, Big Time Contracting, Stagg Honey and Village Laundry.
4. Five Jars
- Location: 68 Jay Street, Suite 201 (Greendesk), Brooklyn, New York 11201, United States
- Average Hourly Rate: $100/hr
- Expertise: Website Development, Software Development, eCommerce Development, Web Design...
Five Jars is a digital agency that specializes in digital transformation, boasting a broad portfolio of development and design projects.
Whether you're starting from scratch or in need of optimization, the agency can help build exceptional experiences for your audience. More than development, Five Jars can create a comprehensive strategy and timeline aligned with your business goals, with measurable success.
The agency's clients include Mount Vernon Museum, Council for Exceptional Children, Fortune 500 organizations, and YMCA organizations in the US.
- Location: Nadejda, Sofia, 1000, Bulgaria
- Average Hourly Rate: $50
- Expertise: Web Design, WooCommerce Development, Responsive Website Design, Real Estate Web Design...
MySuper.Site is a web design, web development and marketing company. They put the strategy first when creating a website for their clients, or when providing any other services. Their clients' websites' purpose should be to gain more targeted traffic and to turn this traffic into clients and They develop a strategy in order to achieve it.
Based on their experience in website development and optimization and their work with other businesses, the agency includes all aspects of a pretty good website that delivers results.
Clients include MONQ Bulgaria, Jump Data Ltd., Faust Pain and Hedra.
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.