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Home | Blog | Pros & Cons: Outsourced IT Services

Pros & Cons: Outsourced IT Services

By Lorraine O.

Updated on April 30, 2024

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Technology has become integral to business operations, enabling companies to expand their teams, reach broader customer bases, and streamline processes. However, managing IT systems can overwhelm business owners, particularly those without dedicated in-house IT departments, and this is where outsourced IT services come into play.

According to industry statistics, 54% of businesses face difficulties hiring qualified employees due to a shortage of specialized IT personnel, budget limitations, or a tight job market. This challenge makes outsourcing IT services a feasible alternative.

Pros of Outsourced IT Services

Here are some reasons to outsource IT services in your business to a third-party company that knows what they’re doing:

1. Freedom to Focus on Your Core Business

Need more help during busy times or for a project? No problem! Instead of going through the lengthy and costly process of recruiting and training new employees, you can simply work with your outsourcing partner. This will quickly bring additional skilled IT professionals to support your increased workload. 

When the busy period is over, you can quickly scale back down without being left with excess staff on your payroll. Outsourcing allows you to pay only for the IT support you need when you need it, avoiding the ongoing costs of maintaining a larger full-time IT team.

2. Cost Savings on Software and Infrastructure 

Making custom software and managing tech in-house needs expensive gear, software licenses, and skilled workers. Outsourcing skips these costs—you just pay for what you use.

While change is hard, outsourcing software work can boost your business. You get enterprise-level resources at a fraction of the cost, reduce risks, and can fully focus on growing.

3. Better Security, Data Management, and Compliance 

Outsourcing IT processes to a managed service provider helps businesses maintain data security, efficient data management, and compliance with data regulations without the hassle of handling these tasks internally.

Fred Chua, CEO of Magellan Solutions, emphasizes, “As an ISO 27001-certified company, we strictly adhere to the highest data protection standards. We treat all client information with utmost confidentiality and secure it through advanced cloud-based platforms and rigorous agent protocols, including non-disclosure agreements.”

A business must find an outsourcing provider that values data security and compliance. 

4. 24/7 Support and Monitoring

Businesses need their computer systems and networks to work properly all the time. However, it can be difficult to have IT staff available 24 hours a day, seven days a week, to fix any problems. 

IT outsourcing companies provide around-the-clock support and monitoring services. They have teams of IT experts working at all hours to watch for issues and quickly resolve them. This ensures your IT systems keep running smoothly without interruptions.

5. Access to Latest Technologies

New computer hardware, software, and ways of providing IT services are constantly being created. It takes a lot of time and money for a business to research all these new technologies, train staff, and update their systems. 

IT outsourcing companies make it their job to stay up-to-date on all the latest IT advancements. They attend training events, partner with top technology companies, and make sure their clients can benefit from using the newest, most efficient IT solutions.


outsource IT

Cons of Outsourced IT Services

While IT outsourcing offers benefits, consider these drawbacks before handing over your IT processes;

1. Less Control Over Processes

By outsourcing IT operations, companies hand over control of critical systems and processes to an external provider. This can make it challenging to maintain direct oversight and ensure that the provider adheres to the company’s specific protocols, standards, and business requirements. 

Since businesses have limited visibility into the provider’s operations, decision-making processes, and resource allocation, it may lead to misalignments or delays in addressing issues or implementing changes.

2. Communication Barriers

Outsourcing IT services often involves working with teams or individuals in different locations or time zones, which can lead to communication challenges. Language barriers, cultural differences, and differing communication styles can result in misunderstandings, delays in addressing issues, or ineffective collaboration. 

Research shows that communication and coordination challenges are roadblocks in offshore outsourcing. 

To resolve this, establishing clear communication protocols, designated points of contact, and regular meetings or check-ins is crucial to mitigate these barriers and ensure effective collaboration between the company and the outsourcing provider.

3. Dependence on the Provider

Outsourcing IT services means your business will depend greatly on the third-party company you hire. This dependency can be risky. To avoid problems, carefully choose the right partner and work closely with them. 

Having an open relationship, setting clear rules, and making backup plans can help reduce significant challenges in transitioning to a new provider or rebuilding its in-house IT capabilities if your business experiences financial difficulties, disruptions in its operations, or decides to terminate the contract.

4. Quality Concerns

While reputable outsourcing providers strive to deliver high-quality services, there’s always a risk of inconsistent quality or a mismatch between the provider’s capabilities and the company’s specific requirements. 

Drawing from Fred Chua’s insights into ensuring that service quality is of the least concern when outsourcing to Magellan Solutions, “Monitoring and quantifying KPIs and metrics are essential in any BPO operation, but we go beyond simply validating their performance in removing non-performers, as we ensure first that we’ve done whatever we can to make sure they succeed in their different roles.”

To evaluate the third-party provider’s expertise, in addition to certifications and track records, service level agreements (SLAs) and performance metrics are measured to ensure the services meet their quality standards. These measures help ensure the services meet the client’s quality standards and expectations.

Elevate Your IT Operations—Partner with Magellan Solutions!

Outsourcing your IT services is a strategic decision that either moves your business forward or holds you back. 

With 18 years of proven excellence, Magellan Solutions is the trusted choice for SMEs seeking to improve their IT operations.

Our team of experts specializes in delivering tailored IT solutions that align with your unique business needs, ensuring seamless integration, enhanced security, and maximum efficiency. Through our outsourced IT services, you gain access to cutting-edge technologies, round-the-clock support, and support from industry experts while freeing up your resources to focus on your core competencies.

Contact us now and see how your IT services improve your business operations.

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      Pros & Cons: Outsourced IT Services

      Lorraine O.

      Lorraine, the creative force behind Magellan Solutions' content, is a seasoned writer with years of experience in the outsourcing industry. She stays up-to-date on new global outsourcing trends and ideas, bringing a fresh perspective to her writing. As a strategic collaborator, she enjoys turning complex outsourcing topics into clear, engaging stories that are easy to understand.

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