What Are Outsourced IT Services? – The Ultimate Guide for 2024

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what is outsourced it services

If you are a business owner or manager, you might have heard of outsourced IT services. But what are they exactly, and why are they important for your business?

In this guide, we will explain everything you need to know about outsourced IT services. Starting by how these differ from break/fix services, and even what the best practices you can follow if you decide to outsource your IT needs to maybe, Wingman Solutions!

What Are Outsourced IT Services?

When you outsource your IT services, you hire a third-party expert on Information Technology to streamline your internal systems so you can achieve your business goals, let’s say the 15% increase in leads by optimizing your communication systems.

They noticed you are still using the same old legacy phones from 20 years ago, so they suggest VoIP solutions that will greatly benefit you because they are an all-in-one solution for communication. remember, this is just an example. Like this, there are many other ways in which they can detect gaps in your systems and implement the right solutions.

Outsourced IT services in Toronto can include IT-enabled business process outsourcing, infrastructure solutions, IT strategies, software solutions, and technical support.

For example, if you need help with setting up a network, installing software, managing cloud servers, or securing your data, an outsourcing company is the best fit to handle these tasks for you. This way, you don’t have to worry about hiring, training, or managing an in-house team, or investing in expensive equipment and software.

Are outsourced IT services different from break/fix services?

The answer is, yes. In break/fix services, the external service providers only fix problems when they occur and charge by the hour.

Outsourced IT services, on the other hand, are based on a partnership with a managed service provider (MSP), which monitors your network and provides solutions for a monthly fee.

Outsourced IT services are proactive, preventive, and predictable, meaning that they can prevent issues from happening, fix them before they affect your business, and provide you with a consistent level of service and quality.

Why Do Companies Outsource IT Services?

Cost reductions

There are many reasons why companies choose to outsource their IT services, but the main one is tolower costs.According to a survey by Deloitte, 76% of all surveyed executives indicated their IT services were delivered via third-party models.

By outsourcing your IT needs, you can save money on hiring, training, and retaining IT staff, as well as on hardware, software, and maintenance costs. You can also benefit from economies of scale, as managed service providers can leverage their resources and expertise to provide you with better service at a lower price.

Focus on core business processes

Another reason why companies outsource IT services is to increase flexibility and focus on their core business. Outsourcing IT services allows you to scale up or down your IT needs according to your business demands, you also don’t have to worry about training, onboarding, or offboarding for an internal IT staff.

You can also free up your time and resources to focus on your core business operations, such as product development, marketing, or customer service while you leave the IT tasks to industry experts.

Access to specialized professionals

Outsourcing IT services also gives you access to experts, who can provide you with the latest technology, best practices, and industry standards. Managed services have the knowledge and experience to handle complex and specialized IT projects, such as cloud migration, cybersecurity, or data analytics. They can also provide you with advice and guidance on how to optimize your business strategy and align it with your business goals.

Streamline operations

Counting on an expert provider of outsourced services like Wingman Solutions can also help you streamline your operations and improve your security. We can monitor your network to detect and resolve issues on the spot and provide you with regular reports and feedback. We can also implement security measures, such as firewalls, antivirus, encryption, and backup, to protect your data and systems from accidental deletion, data breaches, or natural disasters.

What Are the Benefits of Outsourcing IT Services?

As you can see, outsourcing IT services can provide you a competitive advantage with many benefits, such as:

We take care of IT procurement so you don’t have to

With IT outsourcing services, you can use the latest and most advanced equipment and software while not worrying about acquiring new licenses for your staff members or renewing annual subscriptions. The MSP takes care of all of this for you.

Increased productivity and focus on the core business

By outsourcing IT services, you can delegate the IT tasks that are not core to your business, such as routine or repetitive tasks, or tasks that require specialized or advanced skills to the MSP. This way, you can free up your time and resources to focus on the operations that will drive actual revenue to your business.

Security and compliance

By outsourcing IT services, you can benefit from the provider’s expertise and experience in implementing security measures, such as firewalls, antivirus, encryption, and backup. MSPs like Wingman Solutions can also help you comply with the relevant laws and regulations, such as PIPEDA that apply to your industry and market.

Efficient communication and phone systems

By outsourcing IT services, you can improve your communication and phone systems, such as VoIP, video conferencing, or unified communications, that can help you communicate and collaborate with your employees, customers, and partners, regardless of their location or device.

The provider can ensure that your communication and phone systems are reliable, secure, and cost-effective, and provide you with support and assistance when needed.

Access to global resources

By outsourcing IT services, you can access global resources, such as talent, technology, or markets, that the provider can offer. MSPs provide you with skilled and experienced IT professionals, who can handle complex and specialized IT projects and provide you with advice and guidance.

What IT Solutions Can You Outsource?

There are many IT solutions that you can outsource, depending on your business requirements and budget.

Managed IT services

With managed IT services, you outsource the entire management and maintenance of your IT infrastructure, such as servers, networks, devices, and applications, to an MSP. The MSP takes care of everything, from installation, configuration, monitoring, and troubleshooting, to updating and upgrading your IT systems.

You pay a fixed monthly fee for the service, and the MSP guarantees a certain level of performance, availability, and security.

These are metrics that both you and the MSP agree on in the service level agreement when you are hiring the service. That way you get clear expectations and clear metrics that will help you measure or qualify in a way, the service that you will get. This is the most comprehensive and convenient type of IT outsourcing, as it allows you to focus on your core business, while the MSP handles all your IT needs.

Network management and server management

This is when you outsource the management and maintenance of your network and server infrastructure, such as routers, switches, firewalls, VPNs, and servers, to an MSP. The MSP ensures that your network and servers are running smoothly, securely, and efficiently, and provides you with support and assistance when needed.

This type of IT outsourcing is suitable for businesses that have complex and critical network and server infrastructure, and need expert help to manage and optimize it.

Cloud computing

This is when you outsource the storage, processing, and delivery of your data and applications to a cloud service provider (CSP), such as Amazon Web Services, Microsoft Azure, or Google Cloud Platform.

The CSP provides you with access to various cloud services, such as infrastructure as a service (IaaS), platform as a service (PaaS), or software as a service (SaaS), which you can use to host, run, and access your data and applications over the internet.

High productivity

This is when you outsource the development and delivery of your software applications to a software development company or a software engineer. The software development company or the software engineer provides you with custom software solutions, such as web applications, mobile applications, database development, or desktop applications, that meet your specific business needs and preferences. You pay a fee based on the scope, complexity, and duration of the project.

Applications and cloud management

This is when you outsource the management and maintenance of your software applications and cloud services to an MSP, for example, Cloud Hosted Sage or QuickBooks.

The MSP ensures that your software applications and cloud services are running smoothly, securely, and efficiently, and provides you with support and assistance when needed. You pay a monthly fee for the service, and the MSP guarantees a certain level of performance, availability, and security.

Best Practices for IT Outsourcing

Outsourcing IT services can be a great way to cut costs and improve your business performance, but it also requires careful planning and execution. Here are some best sourcing strategies that can help you achieve the best results:

Choose a provider you can trust

The most important factor in IT outsourcing is the relationship between you and the provider. You need to choose a provider that you can trust, communicate, and collaborate with. You also need to establish clear and realistic expectations, goals, and metrics, and monitor and evaluate the provider’s performance and quality regularly.

Determine the right project

Not all IT projects are suitable for outsourcing. You need to determine which IT projects are core to your business, and which ones are non-core or peripheral.

You should outsource the non-core or peripheral IT projects, such as routine or repetitive tasks, or projects that require specialized or advanced skills, and keep the core IT projects in-house, such as strategic or innovative tasks, or projects that involve sensitive or confidential data.

Don’t base your decision just on the price

While cost reduction is one of the main benefits of IT outsourcing, it should not be the only criterion for choosing a provider.

You should also consider the value, quality, and reliability of the IT solutions that the provider can offer, and how they can help you achieve your business objectives. You should also factor in the hidden costs of IT outsourcing, such as transition, integration, or training costs, and compare them with the potential savings.

Summing Up

Outsourced managed IT services can be a great way to improve your business performance, but they also require careful planning and execution.

By following the best practices for IT outsourcing, such as choosing the right IT service providers you can trust, determining the right project, and not basing your decision just on price, you can ensure that you get the most out of your IT outsourcing partnership.

If you are ready to take the next step, don’t hesitate to contact us for a 15-minute discovery call. Tell us which IT issues are bothering you, and we will prepare a tailored strategy to fix it for good.

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