The Highs and Lows of IT Outsourcing

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When it comes to IT support, companies are usually faced with the dilemma whether to use outsourcing services or maintain an IT desk in-house, and understandably so.

It can be quite difficult to determine exactly which is the better option since you have to consider many things such as cost, security, and staff hiring, among others.

But since outsourcing is being adopted by more and more companies, with statistics saying about hundreds of thousands of positions are being outsourced yearly, it may be worth it to examine what you should expect if you are seriously considering to outsource your technical support.

This blog post looks at both the benefits and the downside to IT outsourcing.

PROS

1. You can focus on your core business and scale it up.

If your business is not concentrated on IT industry, outsourcing is definitely going to be a wise decision. When you choose outsourcing services, you will have more time to devote to your product or service and achieve more success in your field, while you let IT outsourcing experts handle the tech support part.

Of course, you can always hire an in-house IT employee for your company, but that means entrusting your entire organization’s IT needs to a single person.

Even if you have a small company, you can’t be taking to chance that your in-house IT expert knows every single area of IT support since that could spell more trouble in your budding business operations.

By contrast, hiring an outsourcing company gives you the advantage of getting the services of a team of IT professionals who are skilled in various IT applications.

2. You may be able to save money.

This part is quite tricky since there is some notion that while outsourcing can help you save on HR costs, you would, on the other hand, still pay for related costs such as a special software to keep track of what’s happening in the IT outsourcing center.

But if you really sit down and make an account of all costs in every area, you’ll conclude that outsourcing is more cost-effective because you can look for a support package that will let you run your IT support on reduced budget.

3. You could improve your customer service.

Good customer service can greatly help in growing your company, and this is one area of expertise that third-party IT support services can offer to your company.

They are well aware that if they can keep your customers happy, you will decide no other way but to continue hiring them for their customer support services.

4. You may cut down on risks.

Service interruptions can be quite common in IT support, which outsourcing companies are prepared to handle.

Aside from the fact that they have the necessary technology to ensure that technical issues are kept under control, they have other contingency measures in place.

You could also benefit from the confidentiality agreement that’s part of your support package if you’re worried about data security issues.

CONS

1. You may incur unexpected costs.

It’s not impossible for outsourcing companies to overcharge their clients, especially if the organization hiring them does not know the extent of support they actually need for their business.
The best workaround to this is to start on a conservative package, as you could easily add to it if the need for more support arises.

2. You have less control on your hands.

This is probably the most glaring disadvantage that comes with outsourcing your technical support since the IT team will be working either off-shore or in a contact center, taking away most of the control of IT support from your end.

Therefore, it’s common for companies to field someone from the organization to monitor projects and ensure that support goals meet customers’ expectations.

3. You might hire the wrong vendor.

Whether you like it or not, you might come across a provider that might shortchange you in terms of expertise, commitment, or service fees. And you won’t know it until a problem crops up, but by then, it would have already cost you losses in time and financial resources.

It goes without saying then that you should conduct your due diligence before awarding your IT outsourcing contract to a particular vendor.

To sum things up, outsourcing your company’s IT support is something that you should carefully consider. It comes with perks, as well as some uncertainties, so make sure that whatever decision you make will be for the greater good of your company and the customers you serve.

1 COMMENT

  1. Thanks for your insightful article on outsourcing IT support. We find that many of our clients appreciate that they no longer have to worry about vacation or sick time coverage of in-house IT. All the HR responsibilities full to the IT support provider including career development, etc.

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