The Top Ten Benefits of IT Outsourcing | Telehouse | Telehouse

The Top Six Benefits of IT Outsourcing

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Oct 23, 2018


From SMEs to global businesses, more and more companies are turning to IT outsourcing.
 
As the most recent survey by Deloitte shows, nearly three-quarters of firms hire additional IT support. This is set to rise even further, with more than 30% of surveyed companies planning to increase their use of IT outsourcing.
 
It’s big business too, with leading global research company Gartner estimating more than £750 billion a year is spent worldwide on IT outsourcing.
 
Among the popular IT services outsourced are:
  • Application/software development and management;
  • Web development/hosting;
  • Technical support;
  • Database development or management;
  • Telecommunications;
  • Infrastructure – hardware, software and network installation and support;
  • Disaster recovery;
  • Data centre management;
  • Data storage;
  • Security
When done correctly, IT outsourcing can have a transformative impact on the way firms do business, regardless of their size.
 
  1. Cost savings

 
For many companies, reducing operating costs is a key goal of IT outsourcing.
 
With fewer staff on the books, little to no training or personnel development costs to worry about and a reduction in desk-space and hardware, outsourcing can significantly reduce budget costs.
 
Fixed monthly operating costs associated with IT outsourcing is another obvious benefit, particularly for those going through some form of business transformation.
 
But for every instance of companies saving millions through IT outsourcing, there is evidence it can make other business processes more information intensive - as existing staff have to manage relationships with the IT outsourcing firm while picking up tasks not included in the contract.
 
So, if you’re going to embark on IT outsourcing, the reasons must extend beyond the bottom line.
 
  1. Better, quicker, smarter output

 
Cost savings are just the start when it comes to IT outsourcing.
 
Attention in today’s highly competitive world has shifted from cost to speed - so speedier, more efficient and agile service delivery that enables business transformation is top of any company wish list.
 
Rather than invest large sums of money in creating their own systems, CEOs are realising IT outsourcing provides fast, efficient and secure interconnections.
 
Outsourced vendors will be specialists, with top-of-the-range equipment and first class technical expertise. This personnel upgrade will ensure better quality output and allow tasks to be completed faster.
 
  1. Reduce risk

 
Data management has become a real buzz word among CEOs with recent changes to UK data laws meaning there are now large fines issued to anyone guilty of misuse.
 
For that reason, limiting access to data and security systems to those you trust is a real priority.
 
Some believe that giving IT outsourcing companies access to their security systems increases the risk of information breaches.
 
But, in reality, centralised data centres like the ones operated by Telehouse are among the safest places around to store information. For example, the use of hosted services and solutions such as distributed denial-of-services, help to prevent data breaches. There is also a reduction in the risk of outages, due to data centres having built in redundancies, which in turn helps mitgate against  the risk of data loss.
 
Outsourcing certain parts of IT processes can also help companies shift certain responsibilities when it comes to risk management.
 
  1. The IT ‘sticking plaster’

 
The advantages of IT outsourcing do not have to be long-term; it can allow companies space and time to focus on issues beyond the day-to-day.
 
Sometimes an organisation, particularly those going through rapid growth or transformation, cannot handle all aspects internally.
 
Outsourcing IT support provides a convenient ‘sticking plaster’ to ensure continuous coverage when companies need to scale quickly or simply need time away from operations.
 
  1. Growing global

 
Another benefit of IT outsourcing is that it can help companies grow - and grow quickly.
 
Most large IT outsourcing companies can provide guidance for customers to launch and expand their business in various strategic locations worldwide including emerging markets such as Russia, China and South Africa. 
 
They can also offer data centre services worldwide which will offer multilingual customer support and local expertise, helping companies set up in new regions.
 
  1. Collaboration is key

 
IT outsourcing is about more than business, it’s about collaborative partnering.
 
As the most recent report into outsourcing from Deloitte suggests companies “...increasingly see their service providers as innovators and key business enablers rather than just sources of price arbitrage.”
 
So in areas like cloud technology and AI, IT outsourcing companies can bring their expertise to the table and help transform the way firms operate.
 
For instance Gartner forecasts more than £2.3 trillion in new business value opportunities will be attributable to AI by 2021, which could recover 6.2 billion hours of worker productivity.
 
Simply put, outsourcing works best when both parties become strategic partners. When done right, the possibilities for business growth and quality service delivery are endless.
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