In today's cut-and-thrust commercial environment, reducing operating costs and increasing efficiency can make the difference between business success and failure.
There has been plenty of discussion on the pros and cons of outsourcing non-core activities in this respect. Outsourcing IT support to a third-party supplier, such as Probrand, is a particularly hot topic. But how can doing this save money?
The right people, with the right knowledge
Talk about outsourcing, and you soon find yourself in a discussion about "sticking to the knitting" and avoiding distractions. All this is true, but there is a more fundamental cost saving involved when it comes to outsourcing your IT.
The role that technology plays is far more fundamental than it was 10 or 20 years ago. Understanding the tools that are available, and how they can empower your business, takes professional knowledge and expert guidance.
This is not something to be left to chance. A wrong decision when choosing the right business software, for example, can have a major financial impact that can be felt for years to come.
Leverage economies of scale
Third-party IT providers offer their services to a range of businesses, large and small. They are able to make themselves available 24/7 to provide support, and can also arrange bulk purchasing and software licencing discounts.
All of these are costs that a business would have to bear alone if it kept IT as an internal function. For an SME in particular, the per-capita expenditure would be significantly higher.
Through outsourcing, your business can essentially piggyback on a large client base, and enjoy economies of scale that would otherwise be unavailable.
No need for recruitment and training
This is related to the "avoiding distractions" rationale we discussed earlier, but it goes deeper. Sure, recruitment takes time and effort from your managers. But employing in-house IT staff also brings further costs - in terms of providing desk space and the tools they need to do their job, ongoing training, NI and pension contributions and any employee benefits.
The true cost of employing someone might be much more than you think - but outsource the function, and these costs evaporate.
Improving business efficiency means money saved
We've all seen situations where a member of staff ends up wearing an IT hat on an ad-hoc basis, because he or she knows a bit about computers.
It seems to work well initially - but when they then spend an entire day trying to get the network back online after an outage, wrestling with a blocked printer, or helping colleagues who keep forgetting their passwords and locking themselves out, it becomes entirely unsustainable.
By outsourcing the IT function, problems are dealt with faster. What's more, valued employees do not have to keep "changing hats", and can instead focus on driving the business forward.
Copyright 2018. Featured post made possible by Probrand