59% of companies (according to a 2023 study) choose outsourcing IT to reduce costs, making it a key driver for organizations looking to balance cost-effectiveness with quality IT support.
The decision to keep IT in-house or outsource is not a one-size-fits-all approach.
So what does this all mean?
In this article, we’ll explore these key considerations, providing you with valuable insights to guide your IT support strategy as your business evolves. Since 2016 we have been serving clients of all types and sizes, determining the right fit for their current and future IT support needs.
By the end of this read, you’ll be equipped with the knowledge needed to make informed decisions about whether to outsource, retain in-house support, or adopt a hybrid approach, ensuring your IT infrastructure grows seamlessly with your business.
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Advantages of Internal IT
Control and Accessibility
You have direct access to your support team member(s), and tighter control over what they do.
Customized Solutions
You are able to tailor your IT solutions specifically to your organization's unique needs.
Team Integration
Your IT staff can be more tightly integrated into the company culture and processes. The day-to-day- presence allows your in-house IT to address needs with a higher level of internal insight.
Immediate Response
Potentially faster response times, although this is dependent on a number of factors.
Advantages of Outsourced IT
Cost Efficiency
- Reduction in costs associated with hiring and training IT staff
- Reduced need for physical space and hardware
- Savings on IT management tools and software
Scalability
- Leveraging skills of experienced experts based on your increasing or decreasing needs
- No need to hire and train new IT staff
- Implement “special IT projects” as required
Expertise and Specialization
Access to a broader range of skills and technologies that might be too expensive or impractical to develop in-house.
- Varied areas of specialization
- Combined experience, variety of situations
- Industry specific expertise
Focus on Core Business
- Leadership can focus on their competencies and strategic initiatives
- Day to day operations continue to run smoothly
- Avoid the bleeding edge (trying new, experimental and untested technologies that can leave you wounded)
Models of Outsourced IT
"As Requested" Services
When you need assistance, you reach out to your IT provider on a "break-fix" basis, receiving support as issues arise. At Northrock, we refer to this as Casual Support. It gives you control over your budget, allows you to leverage internal resources, and provides the flexibility to address IT needs as they occur.
Project-Based Outsourcing
If you have internal coverage for day-to-day, but have occasional one-off projects or migrations, you can engage IT companies for specific, pre-scoped work. An example of this might be transitioning from Google to Microsoft 365.
Managed IT Services
Ongoing management and monitoring of IT systems for a fixed fee. This is a more proactive approach. While Managed Services often have a higher price tag, the return on investment can be significant. Managed Services are typically complimented with periodic reviews to streamline your operations and scale appropriately.
Co-Managed IT Services
Another approach is a hybrid solution where you have internal resources covering a subset of your IT needs while outsourcing other aspects. While this can seem to be a "best-of-both-worlds" solution, it does require very well-defined agreements.
"Is Outsourced IT Right for Us?"
Below are some indicators that it might be worth evaluating a outsourced providers.
Growth
If you are growing, or plan to grow soon, outsourced IT can bring you the benefit of scalability. Keep your costs predictable and in line with your trajectory. External consultants have a better understanding of the field of technologies that could support your growth. For examples your accounting package that works today might need to be replaced to meet your goals.
Risk Management
If you are concerned that your organization is at risk for compromise, loss of data, or other business interruptions, it is worth engaging with external IT as vendors are more up to date on current threats, mitigations and best practices.
Operational Efficiency
If your team is looking for ways to optimize processes and increase productivity, the consultancy that a modern IT provider offers can help you achieve those goals.
Working with an Outsourced IT Provider
While outsourcing your I.T. provides several advantages, you cannot just set it and forget it. To get the most out of your relationship, it is best to treat your provider as a trusted partner or advisor, and vice versa.
Trust
Your IT provider will have access to sensitive information such as your operations methods and proprietary information, naturally it is very important to trust them and feel comfortable working with them. Changing providers is expensive, but if trust is lost then it is a necessary step.
Communication
Ensure there are clear expectations and barrier-free lines of communication with key stakeholders. Keeping open lines of communication builds trust and enhances collaboration, but most importantly it prevents misunderstandings.
Regular Reviews
Scheduled, regular meetings are an important part of the process. Make sure your provider is committed to them, and you make the time as well. These reviews should include:
- performance evaluation
- alignment
- security reporting
- future planning
Moving on from Outsourced Support
Outsourced IT support may have worked for your company for a period of time, but there may come a time where bringing it back in-house could make more sense. In our experience, we typically see organizations switch back to in-house support when they grow to a size where they can staff a team of in-house professionals. This is typically over 100-200 supported users, though this can vary.
Factors that would impact moving in-house might include:
A need for highly customized IT solutions
The strategic importance of IT - the higher the impact on strategy, the sooner you would move in-house
Complexity of operations - the more complex and unique your IT needs are, the sooner you may need to rely on support that is heavily involved in day-to-day needs.
This doesn't have to be an all-or-nothing decision. Your organization might find it beneficial to hire in-house staff to manage specific, specialized tasks while continuing to rely on an outsourced vendor for more general support. Alternatively, you could maintain an in-house team for day-to-day operations and leverage the expertise of an external vendor for high-level consulting and strategic initiatives.
Conclusion
Outsourced IT support can greatly benefit organizations seeking to grow through better technology use, but it's not a one-size-fits-all solution. This article has highlighted key factors to help you determine the best IT support strategy for your evolving business.
Since 2016, we've guided clients in finding the right balance—whether outsourcing, in-house support, or a hybrid approach—ensuring their IT infrastructure grows with their needs.
If you would like to know more about how Northrock's approach to Outsourced IT can help you, please reach out, we are happy to have a quick conversation!
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