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Home | Blog | Outsourced Technical Support For SMEs Pros And Cons

Outsourced Technical Support For SMEs Pros And Cons

By Magellan Solutions

Updated on June 4, 2024

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These are the pros and cons of outsourced technical support that you should know

In the modern business landscape, outsourced technical support is a necessity. Nowadays, IT outsourcing often involves the following:

  • Software development, 
  • Remote e-commerce processes
  • Data management
  • Application design, development and maintenance
  • Cloud and networks management
  • Overall support services
  • Disaster recovery

The challenge however, is not all businesses have the same capability to access experts, assets and resources. This is where outsourcing technical support for small business comes in. 

In fact, a lot of outsourcing providers cater to startups and SMEs when it comes to their IT outsourcing service. This strategy is often used to fill the gaps in the whole processes involved in information technology.

Technical support services for SMEs allows an enterprise to incorporate services and experts into their operations and infrastructure. This enables you to stay efficient and up to date with cutting edge technology. 

All these while keeping your data and information secure, of course with the right partner.  


Pros and Cons of IT Outsourcing Service

Of course, outsourced tech support is not the “panacea for all” type of thing. It has its own pros and cons that you should be aware of. By knowing this, you will know what to do in order to maximize the pros and minimize the cons.


Pros Cons

Ability to focus on core competencies

Having a remote team ensures competent support to your in-house team. As they no longer have to cover for tasks that they have lack of expertise. 

This in turn will improve their efficiency and will maximize their time to do what they do best for your business. 

Loss of control

This is a valid concern that you can minimize as long as you know what your requirements are. 

Outsourced technical support does not have to involve the most important part of your IT. It can only stay as support and you have the power to set their access to your core data and information.

Access to cutting edge technology

Rapid improvements in technology can make any skills easily obsolete within a span of a few years. 

That is why investing too much for training of a full time staff for a specific technology or system may not be smart in the long run.

Less flexibility

This may be affected by lack of foresight on what you should outsource and what should stay in-house. 

Thus knowing your requirements beforehand is a must. 

Increase flexibility

Companies must have the ability to easily adapt to changing business landscape and market.

Outsourced tech support provides the ability to tap into various resources, skills and capacities.

Questionable savings

It is a fact that you can save 50% on operational costs once you outsource. You can easily do the math here and make a comparison to prove it. 

However, it becomes questionable if you want to get as much as 70% without a deep understanding of how outsourcing really works. 

Cost savings

A lot of businesses opt to restructure and downsize to stay competitive in their market niche. 

For example, IT help desk outsourcing provides them with much leaner overhead structures.

Risk of being held hostage by the third party provider

A reliable outsourcing provider opts to choose for sustainable projects.

Like with Magellan Solutions, we focus on the project’s sustainability, regardless of size and duration of the project.

This means there is growth in the partnership for both parties. SLA and contracts will help ease this con. 

Job security for in-house staff

Outsourced staff have an understanding that they are only employed within a limited time as stated in the SLA between your company and the third-party provider. 

This does not jeopardize your business’ reputation and you don’t have to drop your in-house employees whatever the situation may dictate. 

In fact, it helps them to effectively adjust in demand fluctuations while staying focused on their core responsibilities. 


Top Five Benefits of Short-term Contracts and Long-term Contracts of Technical Support for Small Business

Outsourcing can get flexible however you want. With this in mind, here are the benefits of short-term contracts and long-term contracts. 

Short-term Contracts Long-term Contracts

1. Lower operating costs due to lower cost structure with 9% reduction in cost through this strategy.

1. Improved business focus as it will help you target core issues and improve on them instead of wasting your time on non-core IT functions. This lessens the need to use management resources and experts and just leaves it to outside resources with the right expertise

2. More capital funds as investments are realigned from non-core functions to the most important processes. It also improves financial measurements by elimination of capital investments on non-core activities.

2. Access to world-class experts as extensive and knowledgeable staff can work for you without the recruitment and retention effort that you have to go through.

3. Cash infusion as all equipment, facilities, and licenses in current operation have values and are not stagnant, maximizing all resources.

3. Accelerated benefits as it can help you gain the anticipated benefits of having an outside support augment your IT operations. 

4. Access to new resources as you can expand your operations into a different geographic area. This means the ability to utilize what it can offer such as wide talent pool, tech, and best practices.

4. Shared risks because when you outsource you become more flexible, dynamic, and have a better ability to adapt to changing opportunities and challenges. 

5. Better overall IT management as it can help your outsourced team to focus on areas where you have out-of-control IT function.

5. Free resources for other core purposes that provide greater return to the business and in serving the customers.


Signs that You Need to Outsource Technical Support Services for SMEs

If you are still on the fence about IT outsourcing service. Examine your business if you have the following telling signs that you need this strategy.

  • There is an obvious decrease in your overall efficiency, processes and projects are taking longer than usual, customer services and issues are not resolved, and longer system downtime
  • There is a high frequency of security problems and resolution is at a much lower pace. Also there is difficulty in cybersecurity resolutions that leads to inefficient downtime
  • You don’t have IT staff with the right expertise within your ranks and mismatch of skills such as experts handling irrelevant tasks
  • Substandard customer service resolution that leads to low CSAT scores
  • Lack of monetary resources to invest in sophisticated cybersecurity infrastructure that leads to inefficient performance and processes
  • Recruitment of IT staff and experts becomes time consuming and expensive


Why Choose Magellan Solutions For Your Outsourced Tech Support

We have 18 years in the business and one of the premier BPO companies in the Philippines that provides excellent IT outsourcing service for startups and SMEs. 

Our core advantage is our ability to replicate your required services and processes with the proper training on your business’ best practices.

Magellan Solutions is an ISO 27001-certified and HIPAA-compliant outsourcing provider that continuously caters to various industry verticals. 

Contact us today and let our Business Development Manager create the best solution for you. Fill up the form below!


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        Outsourced Technical Support For SMEs Pros And Cons

        Magellan Solutions

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