Benefits of IT Outsourcing

Organisations can gain a number of benefits by outsourcing their IT function.

• Cost reduction. Many IT outsourcing companies are able to provide certain IT services for less money. This is achieved by reviewing current technology, processes and procedures as well as by using their experience in saving money within the IT department.

• Quality of service. It is also possible in some instances to improve service quality by being able to have more resources and better qualified personnel.

• Services will be delivered against a contract to ensure that if the services delivered fall below a certain level, then the penalties may be used against them. This ensures that a high level of service is delivered most of the time.

• An IT outsourcing company will be able to advise you if you can improve your business by installing new technology.

• An IT outsourcing company may be able to help you run your business more effectively because they have experience from a wide range of industries and customers.

• Productivity improvements. It allows senior IT executives and management to focus on critical business’ functions.

• Access to a wider array of skills and knowledge. IT outsourcing enables a company to access skills sets and expertise that they would otherwise not have. Many outsourced service companies have skills and intellectual assets that may take many years to generate in house. For example, it is rare and expensive to have a number of people that can support a wide range of applications in one company. Or, your company may require ad hoc services such as application development or assistance with a particular IT project.

• Allocation of resources. Organisations that use outsourced service providers can effectively reallocate personnel into areas that will have a positive impact upon other projects. This may be a move from tactical projects to more strategic areas which can have a positive impact on the organisations’ longer term use of technology in order to remain competitive.

• Predictable IT expenditure. Most outsourced IT agreements provide a fixed price level (plus a percentage for increases in inflation) allowing for predictability for budgeting and financial planning.

• Flexibility. An IT outsource agreement will include the ability to cover for sickness, holidays and other HR related issues.

• Improved service levels. It is most unlikely that a small, in-house IT department will have enough resources to offer support 24/7/365.

• IT outsourcing companies have the knowledge and means to be able to purchase new systems at the right price.