With the rise of technology and an expanding job market, outsourcing has become a common business practice in the past few decades. Growing companies will often look to outsourcing as a method of cutting costs, or improving efficiency.
There are several different types of outsourcing, but one of the most popular is a Managed Service Provider, or MSP. An MSP is a company that provides outsourced IT services to other businesses.
MSPs provide a wide range of services, such as network security, data backup and recovery, and software support. They can also manage entire IT infrastructures for their clients. MSPs have become increasingly popular in recent years due to the rise of cloud computing.
Is outsourcing the right option for you and your business? Let’s take a look at some of the pros and cons associated with outsourcing with a Managed Service Provider.
Benefits of Outsourcing IT
Outsourcing certain business functions to an MSP can offer many benefits, including cost savings, improved efficiency, and increased competitiveness.
- Cost Savings: MSPs are experts in delivering specific services, so businesses can focus on their core competencies. MSPs can even provide these services more cost-effectively than the businesses themselves could. When a business decides to outsource its IT needs, it can save up to 30% on the overall cost of IT services.
- Improved Efficiency: Another pro of MSPs is that they help businesses improve efficiency. By outsourcing certain functions such as IT management or customer service, businesses can free up their employees to focus on other tasks that are more important to their business.
- Competitiveness: Outsourcing certain business functions can make you more competitive by freeing up internal resources to focus on your core competencies. By partnering with a managed service provider, you can outsource specific business processes, such as payroll, customer service, or marketing.
By strengthening and avoiding the cost and complexity of building and maintaining these capabilities in-house, your level of competitiveness will most certainly rise.
Drawbacks of Outsourcing Your IT
While there are definitely many great reasons to outsource, there are certainly some potential downsides to using MSPs, especially if you don’t do your research while choosing a company to work with:
- Lack of Control: One drawback of outsourcing is that you lose some control over the process. When you outsource to an MSP, you are giving up some level of control and access to the inner workings of your business. It’s important to make sure that you trust your MSP and that they have a good track record before handing over control.
- Lack of Communication: Another potential issue is a lack of communication. If you outsource to an MSP that is located in a different country, for example, there may be a language barrier that can lead to communication problems. Make sure that you have a good working relationship with your MSP and that they are easy to communicate with.
- Hidden Costs: One thing to watch out for is hidden costs. Some MSPs may charge more than you expect, so it’s important to read the fine print and understand all of the costs involved before signing up.
What to Do?
Now that we’ve looked at the pros and cons, you should be able to make a more informed decision about whether or not outsourcing is the right option for your business. If you decide that outsourcing is the way to go, it’s important to do your research and find the right MSP.
When comparing MSPs, be sure to ask questions about their experience, services offered, pricing, and client base.
In order to decide whether or not to outsource your company to an MSP, it’s important to review your long-term goals and study these potential pros and cons. What is right for other companies may not be the best for yours! For more information and helpful IT ideas, visit Telewire.