How You Can Enjoy The Benefits of IT Outsourcing Without The Risks

In-house IT teams often find themselves swamped with core business activities, leading many to explore outsourcing as a viable alternative. According to industry reports, 49% of businesses cite freeing up resources to focus on core activities as their biggest benefit of IT outsourcing.

By redistributing IT workloads, internal teams can channel their efforts towards innovation and growth-oriented projects. Using vendors for routine tasks ensures that critical projects receive the attention they deserve. The result is faster turnaround times and business growth.

Plus, with 78% of businesses worldwide experiencing a tech talent shortage, IT outsourcing can be a cost-effective way to get all the benefits of hiring and training new full-time employees without the time or effort. 

However, IT outsourcing is not without its risks. That’s why weighing IT outsourcing’s pros and cons before you take the plunge is so important. So, this article will discuss how you can gain the advantages of outsourcing IT services while mitigating the potential risks.

Comparing IT Outsourcing Advantages and Disadvantages

The key to avoiding most of the cons of outsourcing is as simple as choosing the right outsourced company. Rarely is the issue of IT outsourcing itself. If your past experience with the model has not been good, it’s likely because the company was not the right fit. 

Even IT outsourcing firms with years of experience may not be right for your needs. So, instead of taking a blanket approach to comparing the pros and cons, consider the comparison on a case-by-case basis. 

Here’s how you can do that.

Identify Your Specific Needs

Before considering IT outsourcing, clearly define your business requirements. Understand what tasks or functions you need to outsource and why. This will help you narrow down potential vendors that specialize in the specific services you need, ensuring a better fit.

Evaluate Vendor Expertise and Experience

Assess the expertise and experience of potential vendors in the specific areas you plan to outsource. Look for a proven track record in delivering the services you need. This step ensures that the vendor's capabilities align with your business goals.

This evaluation isn’t simply based on industry. Some industry standards, such as compliance regulations, will make a difference. However, no two businesses in the same industry are completely alike. Instead, focus on what you want to accomplish. Here are some examples.

Consider Communication and Cultural Compatibility

Effective communication is crucial for a successful outsourcing partnership. Evaluate how well the vendor communicates and whether their work culture aligns with yours. This compatibility can significantly impact the success of the partnership. In fact, research shows that 25% of failed IT outsourcing relationships fell through due to cultural mismatches.

Analyze Cost vs. Value

One of the most compelling incentives for IT outsourcing is the associated cost reductions. Businesses continuously seek ways to maximize fiscal efficiency and maintain a competitive advantage. Allocating IT functions to external vendors allows companies to cut down on overhead costs significantly while accessing a wider talent pool.

However, remember to compare the costs of outsourcing with the value provided. While cost savings are a significant advantage, ensure that the quality of service and expertise offered justify the expenses. A vendor offering the lowest price may not always deliver the best results.

Assess Risk Management and Security Measures

Outsourcing IT functions involves handling sensitive data. Evaluate the vendor's risk management and security protocols to ensure they meet your standards. Proper security measures are essential to protect your business from potential risks.

Pay attention to how they protect their own systems, not just how they say they will protect yours. After all, 29% of cyber attacks begin with a third-party breach that spreads within the network. Therefore, their ability to protect themselves will also protect you.

Check References and Client Feedback

Review references and client feedback to gauge the vendor’s reliability and client satisfaction. This step helps you understand how the vendor performs in real-world scenarios and whether they can meet your expectations.

While there is value in this assessment, be careful to ensure that it does not become your dedication factor. No business will promote negative feedback, so searching for testimonials will only yield positive results. 

If you see negative reviews, think about why that reviewer was unhappy and whether their issue will be relevant to what you want. Just because that relationship didn’t work out doesn't inherently mean that yours won’t either. 

Plan for a Long-Term Partnership

Consider the potential for a long-term relationship with the vendor. A successful outsourcing partnership often involves ongoing collaboration and support. Choose a vendor who can grow with your business and adapt to future needs. 

Start Enjoying The Benefits of IT Outsourcing Today

While our guide helped you plan a sourcing strategy that helps you find the right partner, your next step is to start making calls and comparing candidates. There are thousands of IT outsourcing companies out there, so starting can seem overwhelming.

Since you’re already here, why not start by looking at Gravity Systems? Over 538 other businesses already trust our reliable team to deliver proactive, tailored solutions that help them achieve their goals while leveraging the latest, cutting-edge technologies.

Contact us today to get started.