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Why outsourcing your IT should be expensive

Date: June 17, 2016   |   Author: Richard McBarnet

Outsourcing Your IT -Lumina Tech

The old adage, ‘you get what you pay for’, is never more true than when you are outsourcing your IT. If you want to have a system that is fit for purpose, is well maintained, has great security and is run by people who know what they are doing, and care that they are doing it well because they understand the impact their actions will have on your business, then, quite frankly, outsourcing your IT department should be expensive.

Why outsourcing is better than in-house

Recent research has found that more than 50% of SMEs have a problem finding IT staff who are suitably qualified and experienced. And a massive 79% of companies have experienced what are charmingly understated as “IT frustrations”.

An in-house IT department in an SME will typically have one or possibly two members of staff, making it impossible to provide adequate cover or keep ahead of new developments. A specialist Managed Services Provider will have 10 or more members of staff who can provide round the clock support, they will also have access to a wider pool of knowledge and experience as well as being able to keep themselves better informed of current IT trends.

It is also about expertise and economies of scale. In order to survive in today’s market, service providers must invest in and deploy new technologies across all sectors in order to improve security and operational efficiencies. They can justify the spend because it will help all their clients, enabling smaller companies to have access to better tools.  

Last year, the UK government estimated that the cost of a severe online security breach for a medium-sized business could be over £300,000 – more than double the cost of the previous year. With the perpetrators of cybercrime getting ever more sophisticated and the potential cost of their actions doubling year on year, then it is imperative that your IT is handled by a team of experienced consultants.

‘Expensive’ still works out cheaper

If you are still not convinced, outsourcing to a managed service provider – even one you consider expensive at first sight – will save you money on an in-house department and all the costs that are associated with it: staffing, equipment, training etc. In an interview with The Telegraph, the CEO of a major IT service provider claimed companies can save up to 30% by outsourcing their IT needs.

In comparing quotes from service providers, think about why the cheaper company is so cheap. Look at the hours they are estimating they will provide in your proposed package and think about the kind of employees the company is likely to employ based on those fees. If the fees are low, it is likely that the calibre of staff they would be able to attract would not be as good. For instance, would you want someone on the minimum wage looking after your business critical IT?

A company that is consciously investing in its people is a company that’s also investing in your interests. If you partner with a service provider that provides continual training and invests in the best tools, you’ll have a much better service.

Let’s be honest – everyone is in business to make a profit, and you are actually more likely to benefit from a service provider that makes a decent profit than one that doesn’t. If you expect it to always be trying to cut corners in order to function with your lower budget, you will not be fostering a productive relationship, or getting a good enough service. If you want your company to grow, then you need to hire a Managed Services Provider that will grow alongside you.

The main reason why companies outsource their IT support and managed services is to minimise headaches and allow the CEO to sleep better at night. So isn’t it worth spending a bit more money on a company with highly qualified, reliable and experienced staff who understand how business works and will always provide excellent customer service?

If you want a company that will take the worry of IT off your shoulders so you can concentrate on running your business, talk to us to find out how we can help.

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