The New Priorities for IT Outsourcing [CHART]
The IT services market is changing rapidly as technology continues to play an instrumental role in everyday business operations. This has caused small and medium-sized businesses (SMBs) to outsource many of their IT needs in order to cut costs and gain access to expertise they wouldn’t otherwise have. Instead of spending their time and budget managing everything in-house, SMBs are leveraging the IT skills and resources that managed services providers (MSPs) can offer. But what are the main priorities that most businesses are focusing on when outsourcing IT?
According to KPMG, we are entering a “radical new world of outsourcing.” As IT is increasingly being seen as a business enabler, SMBs are quickly recognizing the value of outsourcing their needs to an MSP.
Outsourcing is growing in its popularity and adoption, according to KPMG’s IT Outsourcing Service Provider Performance & Satisfaction Study, and businesses are choosing to pursue IT outsourcing.
According to Continuum Managed Services, cost savings remains a top driver of IT outsourcing, but the trend is that the new priorities are geared more around quality improvement and access to skills. This changes the value proposition for outsourcing—shifting the emphasis toward delivering value-adding services and innovations in addition to cutting costs.
As the SMB tries to find the right service provider, Continuum says the decision makers are carefully thinking about how they can focus on core business objectives without worrying about their IT needs. In outsourcing to an MSP, they can experience more growth with proactive, predictable and preventative IT services.
- First, the SMB can cut costs because they won’t have to onboard new employees through a costly training process, pay for their benefits, prevent turnover or worry about managing them properly.
- Second, they can experience a much better remediation process when they have a team of engineers ready to respond to service requests, rather than only having a few in-house resources supporting the entire company’s staff.