Key Benefits of Outsourcing IT Services

Speaking of IT services in this context, Andersen’s team means “IT support.” Seemingly, it is not a challenging phenomenon. In plain terms, this service refers to providing technical assistance to customers as entities together with end-users as individuals, with a very simple aim. That is, to keep IT landscapes running smoothly, from setups to troubleshooting. It is not about inventing radically new things; it is about keeping already existing things functional and performing as planned. Such apparent simplicity notwithstanding, the benefits of outsourcing IT services to a dependable vendor are enormous and concurrently challenging ones to secure without such a vendor.

Try to imagine the high-tech and data-driven environment of today, with its ever-present countless interconnected solutions, without proper IT support services. Needless to say, our life would quickly turn into a perfect storm, even an inferno of sorts. Disruptions in FinTech flows, deadly stoppages in healthcare systems, production and logistics turmoil caused by malfunctioning ERPs, costly data breaches and leaks, never-ending frustration among customers. It won’t take long for multiple companies to literally collapse.

This nightmare is not happening right now. And it is not likely to occur tomorrow. That is because issues are constantly resolved.

Pivotal dilemma concerning outsourcing IT services

The growth of any advanced business is dependent on its level of tech maturity and professional maintenance of apps and systems. Therefore, organizations employ special dedicated IT assistance engineers. Their mission is to assume responsibility for software installation, monitoring, ongoing upkeep, and updates. It is their role to ensure programs’ workability and continuous improvement. And nobody else is in charge of proactively foreseeing failures and taking care of arising issues.

Two paths are possible here:

• One could hire in-house engineers;
• Or assign their duties to external service providers, i.e. to resort to outsourcing.

What is preferable? Which advantages are more compelling? On the one hand, each situation is unique. On the other hand, there are some common considerations:

• Running your own corporate staff to tackle IT issues guarantees stability of sorts. Yet, its costliness, inflexibility in terms of price and scope, and expertise-specific limitations motivate more and more business owners and managers to look for alternatives;
• As the tech world moves on, outsourced IT services gain pace and might constitute a matching solution to those who are open to change. There are significant benefits at play.

Interesting fact: This claim, i.e. that outsourcing IT services of this kind is getting more and more popular, can be corroborated by some insightful market estimates. For instance, this projection states that the size of the global IT services outsourcing niche was as high as around $44 billion in 2021 and is expected to hit $80+ billion by 2030.

Actual benefits of outsourcing IT services

There exists a range of self-evident advantages of IT outsourcing in terms of services. For instance, one could easily highlight higher business productivity levels, better customer loyalty rates, increased transparency, as well as the possibility of flexible payment schedules. We would like to focus on those benefits of outsourcing IT services that are mentioned less frequently.

1. Вenefits of adjustability with outsourcing. The package of services rendered in practice can be tailored to a company’s real-world needs. This differs from having in-house staff members, which understandably necessitates fixed salaries and workload.
2. Benefits of better performance with outsourcing. Thanks to the expanding number of providers and intense market rivalry between them, all success-focused contractors are determined to secure the best quality feasible. They are normally interested in establishing long-term strategic partnerships with their respective customer bases. That is the reason why vendors offer highly-specialized professionals to tackle each and every specific request.
3. Benefits of cost-savings with outsourcing. Engineers are available 24/7 in case of any emergency. And this is so from day one, without extra costs pertaining to vacations, sick-leave, as well as office space rent.
4. Benefits of a broader knowledge base with outsourcing. Third-party players engage multi-skilled personnel and groundbreaking technologies. On top of that, they enjoy access to expensive licenses and rare subscriptions that small- and even medium-sized companies wouldn’t be able to cover anyway.
5. Benefits of HR optimization with outsourcing. Having some crucial processes outsourced frees up internal staff for strengthening the brand, generating fresh concepts and ideas, taking better care of end-clients, and, hence, for driving more value.

Service types and their advantages

As already mentioned, the versatility of service types certainly belongs to the circle of weighty benefits of outsourcing IT departments. Indeed, at present, organizations are free to pick up an outsourcing model that suits them best. The eventual decision may hinge on the volume, regularity, and complexity of tasks. Thus, depending on the scope, an entity could request:

• Either, all-round outsourcing. This approach to services implies that vendors promise the fullest service extent and coverage, including assessments and advice;
• Or, selective outsourcing. This framework involves just several aspects of a project.

Also, based on the provider’s location, the following types can be distinguished:

• Onshore outsourcing, when the customer and the contractor are located in the same jurisdiction;
• Offshore outsourcing, when the vendor is from a different country;
• Mixed formats, allowing for the allocation of tasks between the domestic and foreign firms.

When selecting an outsourcing partner to collaborate with, never underestimate such mighty factors as a communication barrier, cultural gaps, and time differences.

Some food for thought: In any business relationship concerning outsourcing IT services, the priority should be satisfying the needs of individuals quickly and comprehensively. After all, organizations and entire economies are made of humans.

So, what are the expectations from help desks expressed by people, the advantages that would tangibly and measurably benefit them, so to say?

Here are some findings from FinancesOnline regarding a straightforward question: “What is good customer service?”

• 33% think that they would benefit from their issue being resolved in a single interaction;
• 31% recognize the benefit of communicating with a representative that is a knowledgeable, qualified, and skilled professional;
• 21% view not having to repeat their data as a benefit;
• Finally, for 12%, the key benefit is to be provided with the info to fix the problem on their own.

Pricing details

Speaking of the benefits of IT outsourcing, we at Andersen can’t skip the question of budgeting constraints. However, in the case of outsourcing these constraints are less limiting. Many companies can rejoice in the prospect of budget-friendly options when it comes to outsourcing, as there exists a plethora of pricing solutions to choose from.

• First, dedicated teams for outsourcing. This method suggests that a specifically designated team will work on your project on a long-term basis, with fixed responsibilities and recurring payments;
• Second, shared teams for outsourcing. This strategy means that payments will turn out to be lower, since the work is performed by a team serving multiple customers and projects concurrently;
• Third, subscription fees, covering arising issues on a monthly or yearly basis for a set payment. This path fits well when the number of tasks can be easily predicted, and they are mostly minor;
• Fourth, incident-based techniques suit those lucky customers with rare issues. This is based on payments made as and when necessary to resolve sporadic problems;
• Mixed models are appropriate when the number of tasks is more or less known. In this case, all the extra issues are paid for separately.

Only benefits? Are there any cons related to outsourcing?

Beyond doubt, there is, universally, another side to the coin, in addition to the benefits. Outsourcing is no exception for sure. Both outsourcing advantages and disadvantages exist and are important to consider. So, what could await a company that fails to choose a reputable partner?

• Some lack of control. When services are outsourced, direct control over their management and execution is relinquished. If the selected provider does not rise to the occasion, prospects will look bleak;
• Potential cyber safety risks. Being in a state of tight collaboration inevitably leads to info exchanges and granting some access to data and infrastructures. This brings about certain threats when the vendor of choice has flawed security measures in place or operates in regions with lax legal and professional regulations;
• Negative impact on staff morale. When internal communication flows malfunction or a given corporate culture does not seek to explain the rationales behind its actions (as well its consequences), any outsourcing initiative is able to instill uncertainty and anxiety in internal personnel members. People will worry about the security of their jobs, which damages the team spirit, productivity levels, and job satisfaction rates;
• Hidden costs. In case cooperation conditions and terms are not thoroughly negotiated and clarified, the problem of hidden costs might surface. These can be caused by alterations to the SLA details, change requests, extra services, and unforeseen expenses caused by emergencies.

Making the most of the advantages of outsourcing IT services

All these problems are not inevitable. Otherwise there would not be so many outsourcing vendors with loyal customers. If the entire process is properly arranged and fine-tuned, everything runs smoothly, with multiple mutual benefits and advantages.

So, what is the optimal way to proceed and capitalize on these advantages?

Obtaining benefits from services — step #1. Agree on the future course of action and urgent aims and conditions with your own management. Explain to the bosses that there’s a need to contract a third-party company. Together, you will be in the right position to outline the budget, scope, form, and desirable outcomes and benefits.

Obtaining benefits from services — step #2. Choose the vendor carefully. All its advantages and disadvantages are to be considered. At this phase, thorough research into your prospective partner's experience, track records, professional methodologies, declared and actual adherence to quality control (QC) and quality assurance (QA) standards, as well as their data security policies and practices is essential.

Schedule interviews with the engineers designated for your project. Evaluate their skills and communication proficiency. Have they previously worked in your unique segment? Do their values align with yours? Are they open to familiarizing themselves with your technology? Have they grasped the essence of the benefits expected from them?

If any of these questions receives a negative response, carefully weigh the implications before finalizing your decision to engage with the vendor.

Obtaining benefits from services — step #3. Formalize a binding agreement. While establishing business partnerships, meticulously fix the service delivery timeframes, anticipated key performance indicators (KPIs), and payment terms. Seek guidance from legal advisors to anticipate potential delays, subpar performance, penalty clauses, and termination provisions.

Obtaining benefits from services — step #4. Transition responsibilities. This stage typically spans weeks, occasionally extending well into months. Be patient. This is unavoidable as the provider needs ample time to review your documentation thoroughly to generate benefits.

Obtaining benefits from services — step #5. Track performance diligently. Solicit feedback both from your end-users and your IT division, while also scrutinizing reports provided by the third-party vendor. If you find any inconsistencies or contradictions, zoom in on them. Whenever you identify unsatisfactory service quality, document and evaluate all breaches of the agreement, negotiate with the contractor to address them, and if deemed necessary, explore the possibility of transitioning to a different vendor.

Conclusion

Certainly, the advantages of outsourcing IT services, coupled with their resulting benefits, remain open to debate. Nonetheless, it's undeniable that up-to-date tech systems play a pivotal role in the operations of each modern company. A well-functioning landscape not only enhances the customer experience but also contributes to increased profitability. When working with a partner who is fully prepared to take care of your customers, you can focus on core operations and more ambitious endeavors instead.

Andersen takes pride in our extensive track record in outsourcing across various industries. Ever since 2007, we have been handling projects, tasks, and missions of any complexity. Don't hesitate to reach out to us to elevate your IT efficiency and effectiveness. Our team is ready to assist you in optimizing your technological infrastructure to achieve greater business success and bring outstanding benefits.

Get all the advantages of outsourcing IT services with us! Our 40,000 tickets successfully processed each month, 92% customer satisfaction rate, preparedness to offer individual schedules or a round-the-clock alternative, ability to secure a 360-degree-wide view, E2E approach, and models spanning L1, L2, and L3 speak for themselves.