6 Cost Benefits of Outsourcing IT Support
In some cases, businesses have good reasons to launch and grow an internal IT team. However, some businesses may find that engaging outsourced IT services aligns better with their needs and budget.
In a past blog post, we covered a few key reasons to hire an MSP rather than hiring in-house. In this post, we’ll drill down specifically to the cost-related benefits of bringing on an outsourced IT services team.
Reduction in labor costs
The most obvious cost-saving factor in hiring an MSP rather than growing an internal IT team is a potential reduction in labor costs. Each IT full-time equivalent (FTE) an organization brings on requires a salary, benefits, a workspace and equipment to fulfill their role. These can add up, especially for IT executives – like a Chief Information Officer (CIO) – who command hefty compensation packages.
Meanwhile, with outsourced IT services, organizations pay the MSP. Pricing can be project-based or a long-term engagement billed monthly, with that cost typically based on the number of users at the business.
This billing structure allows organizations to easily scale up and down according to how many employees they have under a fully managed IT services engagement. It can also allow businesses to bring on tech support only when needed, such as through co-managed IT services for managing special projects or to supplement an in-house IT team.
And, Virtual CIO (vCIO) services offered by some MSPs, including Atlas, can even supply an organization with high-level IT strategy and guidance without having to hire an in-house CIO.
Cost-Saving Strategic Oversight
Organizations that fully rely on in-house IT staff to handle day-to-day needs of their team may find those tasks often take precedent over more strategic efforts. When the IT department is overwhelmed, IT strategy often falls by the wayside. This could end up costing your organization in the long run.
So, another potential cost benefit of outsourced IT services is working with an MSP that is constantly focused on your IT strategy.
For example, a smart and trustworthy MSP should be able to help ensure your organization doesn’t overspend on IT equipment, subscriptions and services. Many businesses jump into making hasty, uniformed decisions about technology investments and end up paying too much. By working with a strategic managed IT services provider, you get all the facts and understand the costs associated with each potential decision.
In addition, ongoing supervision and guidance from the right MSP partner can help keep organizations on track, on budget and protected from high-cost risks.
For instance, at Atlas, we proactively assess our fully managed clients’ IT infrastructures and identify areas in need of improvement. This includes assessing hardware and software needs, as well as security practices. We also conduct a bi-annual technical business review to ensure our clients’ IT continues to meet their business needs.
24/7 Support to Increase Productivity and Reduce Downtime
When employees can’t work because of an IT issue, every wasted minute poses a monetary loss to the organization. So, another benefit of engaging outsourced IT services is one your employees will also appreciate – 24/7 end-user support.
When an organization manages its IT completely in-house, they are at the mercy of employees’ schedules. Employees get sick and take time off, and finding staff to cover those days can be time-consuming and sometimes ineffectual.
On the other hand, organizations working with the right MSP partner can rest assured that their team can access support at all hours of the day and night. This means problems are addressed quickly, so your team can get back to work, with minimal downtime.
Save on Training Costs
The IT landscape is constantly evolving. So, in order for IT teams to remain effective, they must continually pursue professional development opportunities. Costs of trainings, certifications and the like can add up for organizations footing the bill.
Some MSPs, including Atlas, recognize this need. When it comes to hiring at Atlas, we look for IT experts who are willing to learn and grow. Then, we pay for any and all certifications and credentials our team members want to pursue.
Therefore, with our outsourced IT services, our clients work with highly trained IT specialists without having to spend on training costs.
Protect Against Costly Cyberattacks
Dealing with the aftermath of a cyberattack can potentially ruin a business. As one example, according to IBM, a data breach costs businesses an average of $4.24 million. These costs relate to business disruption, revenue loss, legal and forensic analysis fees, and many other expenses.
As mentioned above, overworked or under-resourced in-house IT teams may lack the time – or even expertise – to properly oversee IT strategy. And one key aspect of IT strategy that simply cannot be overlooked is cybersecurity.
Organizations that engage outsourced IT services with an MSP focused on cybersecurity, like Atlas, can avoid the potentially crippling financial effects of a cyberattack.
Increase Your Chances of Obtaining Cyber-insurance
Over the past couple of years, more and more organizations have applied for cyber-insurance. This is due to the rise in cybercrime we’ve experienced since the start of the COVID-19 pandemic. Cyber-insurance helps cover the costs a business incurs after a cyberattack.
At the same time, it’s getting harder and harder for organizations to obtain cyber-insurance. Cyber-insurance policies – and payouts following an attack – hinge on whether your organization follows IT best practices in cybersecurity.
If your in-house IT team isn’t able to focus on cybersecurity, consider hiring an outsourced IT services expert to get and keep your security operating at the highest level.
At Atlas, we’re familiar with these cyber-insurance applications and advise our clients on how to meet IT best practices. As a result, we help increase the likelihood that organization will obtain cyber-insurance coverage and will be paid out fairly if or when it comes time to make a claim. The cost savings that cyber-insurance can bring to organizations impacted by cybercrime is significant.
Looking for outsourced IT services instead of hiring IT in-house, or to supplement the work of your existing in-house team? Contact us today to learn how we may be able to save you money and offer you peace of mind.