Five ROI Benefits of Outsourcing Your IT
Are you getting the desired ROI from your information technology investments? Many small and mid-sized businesses struggle to fully leverage modern technology due to limited expertise, cost concerns and the sheer pace of change. That’s why many organizations choose to outsource their IT to Managed Service Providers (MSPs).
Here are the five ways that outsourcing your IT to a Managed Service Provider can improve your ROI:
- Optimize Technology Initiatives – Have you deployed the right set of IT technologies that will enable your business to best compete and satisfy user and customer requirements? Are you using the latest cloud technologies and SaaS applications? Do you have the right back-up and disaster recovery solutions in place to prevent data loss? Are you adequately mitigating risk from cyber-attacks? Managed Services Providers have the expertise to plan, deploy and manage the IT systems best suited for your organization.
- Control Costs – Outsourcing your IT reduces costs in three major ways. First, your business can control costs by reducing the number of full-time employees. Partnering with a Managed Services Provider enables access to a team with a broader set of skills and experience, rather than relying on one single IT person, for a lower monthly cost. Second, your organization can cut costs by utilizing an MSP’s aggregated buying power for reducing price on equipment and IT procurement. Lastly, you can control costs by having one fixed monthly operational expense for all IT expenditures.
According to a recent study, 46 percent of respondents who currently use managed services cut their annual IT expenditures by 25 percent or more by moving to an MSP, including 13 percent who decreased their annual IT expenditures by 50 percent or more. An additional 50 percent of organizations saved up to 24 percent in annual IT costs.
- Reduce downtime – When your network or applications unexpectedly fail or crash, IT downtime can have a direct impact on your bottom line and ongoing business operations. The costs associated with data loss and downtime can be staggering for small and medium sized businesses. According to a recent study, 80% of small businesses have experienced downtime, with costs ranging from $82,200 to $256,000 for a single event. What does this mean to your business? Every minute counts - to the tune of $137 to $427 per minute. Regardless of the organization’s size, when an unforeseen event takes place and causes day-to-day operations to come to a halt, a company will need to recover as quickly as possible to ensure they’ll continue providing services to clients and customers. Downtime of business-critical systems is never acceptable and can have a serious impact on your bottom line.
- End-user productivity – Technology performs a crucial role in helping your employees improve their productivity. Computers, mobile technology and automated workflows let your business do more with less. Keeping your technology functioning properly and ensuring end users have 24/7 access to the applications they need is paramount. When end-users don’t have access to business-critical systems, or if performance is slow, productivity suffers. For example, what’s the impact to your organization if nurses can’t access patient records, or your accounting team can’t process invoices, or if your sales team can’t send emails to prospects? Businesses can’t afford issues with applications and infrastructure that is mission critical. Ultimately, failures in technology bubble up to poor business performance and customer satisfaction.
- Mitigate security risks - While we read a lot in the media about major companies like Target, eBay, and Yahoo being hacked, small to medium sized companies are equally at risk. According to a recent report, 43 percent of cyberattacks against businesses are targeted at small companies. The average amount demanded from a ransomware attack is $1,077 and 34% of people globally are willing to pay a ransom to get their data back. The impact of a security breach is of significant concern, with 60% of small companies going out of business within six months of an attack.
While most organizations don’t believe they’ll ever become a victim of attack, leadership teams need to consider the detrimental impact of a security breach. How much personal identification information does your company currently possess? Does your business have the resources to recover from a breach if you are attacked? Often, an in-house IT team does not have the experience or bandwidth to prevent these types of attacks from occurring. A Managed Services Provider however, has the resources and expertise to prevent incidents from happening and ensuring your business follows security best practices.
For these reasons, outsourcing your IT is the smart choice for many organizations. If you would like to learn more about outsourcing your IT and whether it's the right option for your business, Logically is here to help. Schedule a call with an expert to learn more today.