Pros and Cons of Outsourcing Managed IT support service

managed it support service outsourcing company

Table of Contents

Today, the business environment has gone virtual as the majority of the businesses are online. In fact, Fortune 500 Companies are also into outsourcing their customer services. Talking about Australia’s businesses, they are into tackling issues with IT-related services, which include VoIP services, technical support, data storage, and ease of the business process. For this, they rely on Managed Service Providers(MSPs). But why choose MSP for outsourcing? Well, we will cover every pros and cons of outsourcing Managed IT support services in this blog.

 

What are MSPs? 

MSPs have been a part of the industry since the early 2000s when internet connections and uptime reliability reached a level that made it possible to administer computer networks more quickly from a distance. At present, MSPs are operating on different pricing methods. Also, organisations outsource IT support to secure IT-related operations and data.

 

Stats and Figures about Managed IT Support Service

Back in 2021, the pandemic continued to disturb the normal course of business hence getting them to have accelerated digital transformation and services. Many companies (55%) are spending more money with their MSPs today compared to previous years. Most importantly, the investment is on cloud (36%), digital transformation (35%), and focus on managing cybersecurity threats (34%).

As per Business Wire, the global managed services market was valued at USD 161.37 billion in 2021, and it is expected to reach USD 311.32 billion by 2027. According to K &C, the IT services market has an estimated CAGR (Compound Annual Growth Rate) of 8.4%, and the IT Outsourcing market is 7.7%. This depicts that the IT services sector is expected to become $1,070.28 billion by 2025 while IT Outsourcing to be around $ 806.63 billion.

 

Why does your business need an MSP?

  • MSP continuously maintains and keeps an eye on any business concern’s IT systems.
  • They can help you identify outdated technology and also keep your systems updated and safe.
  • MSP provider offers a computing framework platform for organisations from a distance, and they serve as third-party IT service providers for you.

 

Why is In-house IT service not suitable for small businesses?

With your in-house IT department staying on your business premises, you are guaranteed quick support.

However, in-house IT support will not be available 24/7 as the employee may stay on day-offs, enjoy annual leave, weekends or are only available from 9 am to 5 pm. Also, for small businesses running in-house IT services may not be a cost-effective option. With an in-house IT team, you can choose whom you hire, meaning you can make them part of your company culture, but these employees are susceptible to the wrong work culture and may stay resistant or become reluctant to change.

 

What Are Outsourced IT Services?

Outsourced IT services are offered by MSPs. Under these services, MSP handles everything: operating system installation, software setup, data backup, securing networks, implementing operating systems, installing the software, etc. By forming a partnership with your business, a managed IT service provider can continuously watch over your network. MSPs can be eliminated, and problems should be resolved as they arise for the benefit of both you and the service provider. To be precise, opting for outsourced IT services means reducing costs on IT solutions. In most cases, outsourced IT services include Network Security, Network Implementation and Maintenance, Troubleshooting Support, and System and File Backup.

 

Under what conditions can a business opt for outsourcing IT solutions?

  • When You Lack In-House IT Team

When you feel you have some issues or you need services for your overall IT solutions, then you might feel the need to have an in-house IT team. Setting up the in-house team can be draining as you have to collect resources and human power. So, you can get rid of all this hassle; you can simply switch to outsourced IT services.

  • You Want to Save Money

For smaller businesses opening an IT department is making the biggest investment, and this can be a heavy choice. Thus, in this condition, an MSP is a perfect solution. The in-house IT department has a team doing tasks and is paid high salaries, but with outsourced IT services, the pay can be extremely cost-effective. In fact, MSPs handle a vast range of services under their dedicated service package.

  • You Want the Best Support Technologies.

Outsourced IT services have access to the highest-grade and up-to-date technology, hardware and software available on the market. The best part is that an MSP takes care of all such chores. In addition, your in-house technical staff does not even need to learn complicated aspects of hardware operation and software installation, as MSP is there to handle all such tasks.

 

Pros of Outsourcing IT Solutions

Let’s look into the benefits of outsourcing, which can drastically aid in elevating business success.

1. You can relish massive savings, both on control and labour.

With outsourced IT services, the time and money spent on computing-related research and implementation can be spent on your business’s core competencies. In addition, when you outsource your IT services, you convert your fixed costs into variable costs. This enables you to do your budgeting right and incur fewer costs. Coming to savings on labour costs, hiring an IT professional is expensive.

Hence, when you outsource IT services, your company can save money as you don’t have to pay for internal IT staff; the funds that can be put into hiring IT personnel can be invested for further growth in the business. On top of that, you can avoid training those IT professionals as the IT industry is always affected by new updates; however, outsourcing training is not to be done by yourselves. Likewise, if you choose to outsource your company’s IT to an MSP, you will always be aware of the monthly cost for the highest level of IT functioning and protection.

2. All-encompassing expertise and Active IT Experience.

When you outsource your IT, you are not constrained by the abilities of the people you may have in your in-house computing maintenance team. Your computing requirements are completely met while working with an MSP.

In the IT realm, new issues and challenges appear every day. In addition, an IT professional who has worked in the same place for years is likely to be familiar with the organisation’s problems. However, the MSP employees will be knowledgeable and up-to-date on any new IT developments. In conclusion, when you outsource to an MSP, your company receives IT service with the utmost discipline.

3. You can enjoy services from reliable technicians who offer qualified service.

In in-house IT services, an IT applicant must be taught about the details of a company’s computing infrastructure; this can drain a company’s resources from various areas. With an MSP, you can save time for in-house training and avoid changeovers in personnel and quality among an IT staff.

For most small and medium-sized businesses, IT and technical issues are a secondary or tertiary area of focus. When they outsource IT tasks to an MSP, they don’t have to worry about hiring top-level IT talent, as MSPs offer top-of-the-line expertise at affordable rates. Another thing is that an IT company that an enterprise chooses for outsourcing holds the calibre of talent to meet the demand for IT solutions.

4. You can Access Improved IT Technologies.

The IT industry is most susceptible to changes and updates as software and hardware change rapidly. The latest solutions are likely to be replaced within a short time. In most cases, in-house IT professionals have duties besides technical support, meaning a limited time researching and implementing the latest best practices in the IT industry. However, IT is a standard line of work for most MSPs, and they provide clients with the most recent technology upgrades and solutions.

5. You can have reduced risk and increased cybersecurity.

The present digital era exposes companies to numerous cyberattacks- unwanted and harmful attacks that could set a company back and damage its reputation. Cybersecurity includes safety from cyber attacks such as malware, phishing, ransomware, password attacks, SQL injection attacks, etc. When you have an MSP working behind the scenes on your side, you can minimise cyber attacks. These MSPs offer professional services and guarantee efficient security for your company’s hardware, network, data centre and data. Moreover, you can enjoy additional benefits, such as continuous remote monitoring to keep your system safe 24/7. This monitoring certainly helps prevent the risk of cyberattacks and get the business on the growth path.

6. You can enjoy increased focus and scalability.

Businesses that outsource their IT support can concentrate on factors and areas like server management, data networks, apps, voice networks, and other elements of contemporary business infrastructure. As your business expands, the increase in IT services is also needed to expand. Thanks to a dedicated MSP, the scalability can be maintained, and the systems can be constantly kept up to date,

7. You can enjoy outsourcing business intelligence too.

Business Intelligence(BI) includes processes, tools, technologies, integration, data quality, data warehousing, master data management, content analytics, and data visualisation to keep your data safe. BI aids in establishing a proactive strategy for satisfying customer demands. By outsourcing BI to an MSP, you can avoid the cost of hiring project managers, software engineers, and data specialists, all of whom have salaries and other expenses. Letting your MSP take the lead on the project to operationalise your BI will be a wise choice, given that they are already working hard to integrate and streamline processes.

8. Improve vendor management and customer service 

An MSP can be your support partner and help you negotiate with vendors. An MSP, a specialised entity, will be able to handle and deal with these changes and updates regularly.

An MSP also eliminates service interruptions and downtime, which helps your business regularly witness improved customer satisfaction. With outsourced IT, your company rarely faces problems such as downed customer-support lines and unresponsive online sales portals.

9. Focus on your strengths and maximise productivity.

IT is a specialised field that necessitates ongoing knowledge updates. Companies can concentrate on their areas of strength by outsourcing their IT needs. These companies can enjoy maximum productivity as an MSP can address the complete spectrum of IT-related concerns.

10. Just Immediate Implementation

An MSP can quickly integrate any application that will aid in business outcomes. Also, the process of software implementation and network adaption by MSP can be done immediately. With outsourced IT, you can continue your daily operations and activities without waiting for implementations.

 

Cons of Outsourcing IT Services

Here are some cons to outsourced IT services:

  • You might encounter potential downtime.

Your business can endure downtime if no remote specialists can handle your problems immediately. To help you avoid this, selecting a reputable MSP can be helpful.

  • You may suffer security issues.

When you outsource your IT work, you are putting your company’s security in their hands; thus, you need to find out what security measures they have in place. Also, your MSP, which might be operating from a foreign, might not be familiar with the laws in your nation, and you may encounter the condition of utilising subpar processes.

  • There is limited flexibility.

The incorrect MSP can ask you to use some specific software and may make you feel stuck working with them.

  • Loss of Control

When outsourcing, you will feel the loss of control of existing IT support service processes, functions and even management of tasks.

  • Getting better response times can be challenging.

An MSP may have contracts with several other companies, meaning all their workers are engaged and can’t attend to immediate IT needs. This will, hence, lower productivity until an issue is resolved. Thus, you can definitely work for outsourcing arrangements so that you stay in touch with the best technology.

 

Tips for choosing a Managed Service Provider (MSP) for small business

  • Always look if MSPs specialise in Managed Security Services (MSS).
  • Always see if the managed service provider has the best statistics on annual retention rates, the current level of partnerships with Microsoft and other tech companies, and the size of their customer base.
  • Always see if a managed service provider abides by SLAs, as SLAs are at the heart of ensuring business continuity.
  • Figure out if the MSP is flexible and offers customisation. Do they have a rigidly structured managed services package? If it is not available, just cut that MSP from the potential MSP list.
  • Check if MSPs offer transparency with their approach, culture, tools, processes, and methods, as this ensures visibility, collaboration, and trust.
  • Always make sure the MSP’s IT services are under your budget. You can contact them for a clearer understanding.
  • Choosing the appropriate outsourcing delivery model is one of the difficulties businesses confront when looking to outsource support for their mainframe infrastructure. So, always check for mainframe outsourcing and services.
  • Check if an MSP keeps up with the latest trends in information technology and IT systems to ensure your or your client’s data is secure.

 

Why do businesses choose NSW IT Support as their MSP?

For Australian businesses who are looking for outsourced IT management and services in Australia, NSW IT Support is the best. We have an experienced team who are fluent in their IT Support jobs. Contact us if you need a strong MSP who can support your core business goals, especially those related to IT and Cybersecurity.

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