When should you outsource your IT?

There’s not many business owners who are geeks at heart. Usually they are big-picture visionaries who are looking to build and grow an amazing company.

Technology in today’s business environment plays a bigger role than ever before in driving that growth. IT is now a critical function in any business. Not many of us could function without phones, the internet and computers. Outsourcing the management of your IT to an external company can make a lot of sense.

What does ‘best practice look like’ when it comes to IT management?

Regardless of whether you hire an internal IT manager, team or outsource, your IT should be managed so that:

  • clear, documented processes and frameworks around how your IT is managed instil discipline and efficiency
  • proper documentation is kept up to date and constantly reviewed to ensure it is relevant
  • IT performance management systems are in place to proactively monitor and maintain your IT environment
  • IT management has the relevant knowledge and awareness of IT options available so that they consolidate systems where possible to reduce operating costs
  • cloud or hybrid computing models are used where possible to enable flexibility and agility
  • IT assets are managed for optimum usage of software and hardware
  • a disaster recovery plan is in place and routinely tested

Why would you outsource?

Many business owners feel it makes more sense to have your own IT manager versus outsourcing. That way you have someone fully dedicated to just your IT. While that may be the case, there’s lots of reasons why outsourcing would provide you with better outcomes.

Maintain focus on your business objectives

A good outsourced IT partner will be monitoring your network, updating software, managing storage and backups. Your IT runs smoothly whilst you focus on achieving your business goals and managing your team.

Stay up to date and receive advice on the latest technology

It would be impossible for a single resource to be fully trained, accredited and up to date in the latest technology. An outsourced IT partner will have an entire team of skilled engineers with qualifications across all the major IT vendors. They should be able to provide you with a lot more experience and knowledge around the various IT options.

Round-the-clock monitoring and management

No IT manager would be able to be across your IT operations and network 24/7, 365 days per year. A good IT services partner will have systems to monitor your network round the clock, every day of the year and have support available to deal with any problems should they arise regardless of whether it’s during normal business hours.

Reduced risk

When you outsource your IT you are reducing risks. You will have your network and IT operations fully documented and managed by an entire team, reducing the risks associated with having all of the knowledge and capabilities resting with a single team member.

Reduced costs

Say an internal employee costs $100,000. Add recruitment costs, annual leave, sick leave, public holidays, superannuation, training costs, insurance, payroll tax and equipment (e.g. phone, PC, car) and the costs can grow to $195,000 per year. An outsourced IT company can provide full management, monitoring and support for considerably less.

What to look for in an outsourced IT company

Credentials

A good IT partner should be accredited and have partnership status and be fully certified with leading IT vendors. The more accreditations they have, the more skills, experience and advice they can bring to your business.

Fixed-cost pricing

Your IT partner should be able to offer you cost certainty by providing a contract with agreed service levels for a fixed monthly fee.

Flexibility

Your IT partner should be able to provide extra services or reduce services based on your needs.

Proactivity

Your IT partner should have a system in place to ensure they are regularly discussing your overall IT objectives and options.

Accountability

Your IT partner should be able to report on all aspects of their service, how well they are responding to support issues and the work performed on a daily, weekly, monthly or annual basis.

Centrix Solutions