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The 4 Most Important Benefits of Outsourcing IT Services

The 4 Most Important Benefits of Outsourcing IT Services
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Published Apr 19, 2023

As a small business owner, you are likely constantly seeking ways to optimize your operations, streamline your processes, and increase your profitability.

One strategy that may have come up in your research is outsourcing your IT management. This involves hiring a third-party service provider to manage your IT systems, applications, and infrastructure.

Over 92% of all G2000 companies now outsource their IT management as a way to drive efficiency within their core business operations. But while there are many advantages of outsourcing IT services, there are also risks that must be considered.

In this blog post, we will take an objective look at IT outsourcing advantages and disadvantages, and why outsourcing may be the better option over in-house teams despite the risks.

advantages of outsourcing IT services

Image Credit: Global Market Insights


What Are the Benefits of IT Outsourcing?

According to Research Dive, the managed IT services market will reach $411 billion in 2027, up from $174 billion in 2019, a Compound Annual Growth Rate (CAGR) of 10.2%.

Let’s take a look at some of the key benefits of IT outsourcing that are driving these growth trends!


1. Access to Expert Skills and Knowledge

One of the largest benefits of outsourcing IT services to a managed service provider (MSP) is that they offer more access to diverse skills and knowledge by providing a team of professionals who have years of experience specializing in various areas of IT.

These professionals have experience working with a wide range of businesses and industries, giving them a diverse background of technology and expertise to help your organization resolve IT issues quickly and easily.


2. Cost Savings

Outsourcing IT management can also help you to reduce costs on IT management.

By hiring a third-party service provider, you do not have to worry about the costs associated with hiring and training your own internal team, purchasing and maintaining IT infrastructure, licensing software, and so on.

This can significantly reduce your IT expenses, freeing up internal resources and saving you time and money that can be used to grow your business.


3. Scalability

As your business grows, so will your IT needs. From custom software development to support services and security and compliance, there’s a lot to consider when scaling your IT operations.

Outsourcing IT management can help you to scale your IT resources quickly and easily, without the need to invest in new infrastructure or hire additional staff.

You will also have the option to choose your services as needed with the help of an IT consultant, which helps you budget more effectively by avoiding unnecessary expenses.

This can help you to stay cost effective, competitive, and agile in an ever-changing business landscape.


4. Improved Security

While there are IT outsourcing pros and cons, one of the undeniable benefits of IT outsourcing is that it can help to improve your cyber security posture significantly.

A reputable service provider will have the expertise and tools necessary to secure your systems and data, helping to protect your business from cyber threats.

In an age where 43% of all cyber attacks target SMBs due to the fact that most don’t have adequate security measures in place, this heightened level of security serves as one of the biggest advantages of outsourcing IT services.

Check out these additional resources to learn more about the importance of cyber security:


What Are the Risks of IT Outsourcing?


1. Loss of Control

In certain cases, outsourcing IT management can result in a loss of control over your IT systems and data.

This can be a concern for businesses that rely heavily on their IT systems to operate. However, this risk can be mitigated by choosing a reputable service provider and clearly defining the scope of their responsibilities.


2. Communication Barriers

In considering the IT outsourcing advantages and disadvantages, another risk of outsourcing IT management is communication barriers. If your service provider is located in a different time zone or speaks a different language, it can be difficult to communicate effectively.

However, this risk can be mitigated by choosing a service provider that has a strong communication strategy in place and is responsive to your needs.


3. Quality of Service

Outsourcing IT management can also result in a reduction in the quality of service – depending on the MSP you choose to partner with.

If your service provider is not properly trained or does not have the necessary expertise, it can result in downtime and other IT issues.

This risk can of course be mitigated by choosing a reputable service provider that has a proven track record of delivering high-quality IT services. Find out why XL.net is your best choice for leveraging the benefits of IT outsourcing!

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4. Security Risks

Security is one of the biggest IT outsourcing pros and cons, because outsourcing IT management can also increase your security risks if your service provider does not have adequate security measures in place.

However, this risk can be mitigated by choosing a service provider that has a strong security posture and is compliant with industry standards and regulations.

Benefits of Outsourcing IT Services

Enjoy the Benefits of IT Outsourcing with XL.net

Despite the risks, outsourcing IT management is almost always the better option for small businesses.

In looking at the benefits of outsourcing IT services, it becomes apparent that outsourcing to an MSP is the better option for businesses looking to save on costs, gain access to expert skills and knowledge, eliminate time consuming tasks, and improve security.

With XL.net, you can trust that your IT infrastructure is in good hands. So contact us today to learn more!

IT outsourcing advantages and disadvantages


Our team of experts has the skills and experience necessary to manage your IT systems, applications, and infrastructure in a way that doesn’t just meet your needs – but actively drives your business forward in the long-term.

Our 70+ technology certifications and proven IT processes help you rest assured that your IT systems will remain secure, reliable, and efficient. Contact us today to learn more about why we’re your best choice for leveraging the benefits of IT outsourcing!

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