When To Outsource IT Services? (10 Reasons To Know)

IT Outsourcing

Most companies outsource their IT needs as it has many benefits like faster tech integration, giving you more time to deal with critical tech problems. Around 92% of G2000 companies use IT outsourcing to grow their business and make things work faster.

Technology is always changing, so you need to stay updated to keep your business running. Updating yourself with the latest tech stacks could take up much of your time and high tech skills.

In such cases, you may think of outsourcing IT services. But, the question is when to outsource IT services? What is the right time? And, most importantly, when to not outsource IT services?

Well, the answer may depend from company to company, but generally speaking, you can outsource IT services when you don’t have enough in-house expertise, when you have other important matters to focus on, or when your company is growing too fast, that’s high time for you to outsource IT services.

In this article, we will be diving deeper into this topic, what is IT outsourcing, when you should outsource IT services, and why you should outsource IT services.

Without any further delay, let’s begin our exploration.

What Is IT Outsourcing?

Let’s understand IT outsourcing with an example:

Let’s say your company needs help with a particular tech task and your IT team is already overwhelmed with all the other tasks at hand, or there are more critical things you need to focus on. In a situation like this, what you can do is hire a company or an organization that is professional in this field and let them handle the entire IT requirements.

IT outsourcing is not just helpful and time-saving, but it is also cost-effective for you and your company.

So, you understand what IT outsourcing is?

Simply put, IT Outsourcing is a process where a company or an organization contracts out their IT needs to a third-party service provider.

Once you have selected a third-party service provider, you create a contract, in which you will discuss the work they have to handle, time, cost, and other important things.

The service provider is responsible for completing the tasks as agreed upon in the contract.

10 Reasons When You Should Outsource IT services

I’m sure you have got an idea of how these Outsourcing IT services work and the benefits of outsourcing IT services.

Now, let’s see when is the right time to outsource your IT services:

When The IT Spent Is High

One of the top benefits of outsourcing IT services is that they are cost-effective, and you don’t have to worry about spending extra on the outsourcing IT service staff, pay for IT infrastructure, or the support staff.

In short, you will only be paying for the services that they will carry out on your behalf. It is often expensive when you invest too much to maintain an in-house team, but outsourcing helps you save money.

Another great thing about outsourcing IT services is you don’t have to worry about the cost of hiring and providing training to them. It also improves the productivity of your in-house team, allowing them to focus on more important matters at hand, for example, bringing sales to the company.

Outsourcing IT is an affordable option and you won’t even have to worry about breaking your bank on it.

When You Don’t Have Great Resources

Outsourcing IT is the best option for those companies who lack proper resources or whose IT team doesn’t have enough funding to hire a team that has expertise in IT.

There are times when you don’t have all the resources you need for your business and it’s hard to keep yourself updated with the latest tech trends and solutions.

At some point, it gets difficult to fix those problems if you don’t have an IT expert in your company. With no proper resources and knowledge, it gets challenging for your in-house team to fix problems.

That’s when you should outsource business IT, they are already well-equipped with all the necessary tools and knowledge.

When You Can’t Manage Your IT Department

Handling a whole company is not a simple task, it takes lots of patience and hard work to keep a company standing on its feet.

There are lots of different departments working in the same company and you have to manage all of them at the same time.

Things get more hectic when your company is rapidly growing, it also gets hectic for your IT team too.

Most of the tech agencies have experienced staff and high performing infrastructure, you just need to tell them your requirements and they will get the job done for you.

Taking most of the burden off your shoulders. When you outsource your IT needs, you get access to a team of experts, who help in reducing the workload and improving the efficiency of your company’s IT needs.

You Have Frequent IT Problems

When the business grows, the responsibilities and the workload grows as well. When your in-house IT department is overwhelmed with frequent IT problems, you may have to hire dedicated developers for those frequent problems.

Unfortunately, for some companies, it can be difficult to hire a large team of IT experts, maybe due to lack of expertise or budget.

Outsourcing IT helps reduce the workload of the IT department and allows them to focus on more important things. If you are facing IT problems frequently then it’s best to outsource your IT needs to a team of experts who have more experience and expertise.

You Need 24/7 IT Support

Just as your business grows, so does your IT needs, and technical issues like your server crashing, errors in system updates, and problems with network synchronization are quite common while running a business.

If your organization needs round-the-clock IT support, then outsourcing your IT needs is the best decision for you and your business.

Outsourcing IT service providers have access to good technology and better resources that are up-to-date with technology trends. Outsourcing IT services makes sure to provide 24/7 IT services like help desk support, system maintenance, and network monitoring support to your company.

IT Distracting You From The Main Goal

Outsourcing can help you save more time to focus on your primary goals and core business activities. You can outsource your IT needs to a third party, and focus more on improving your business’s strategies and strengths.

By outsourcing your IT needs to the service providers, you can make your in-house staff focus on other business areas that need to be handled.

The service providers will do the required tasks on your behalf, managing your network, and keeping your system up-to-date, they will perform all the technical tasks.

When You Need Latest Technology

Nowadays staying updated with the latest technology trends needs time and you can’t do that while running a business as there are many other crucial things that you need to focus on.

Outsourcing IT services already have access to up-to-date technology and expertise, keeping your system and equipment running at peak performance.

You don’t have to worry about spending extra expenses on your IT staff and the infrastructure, as outsourcing allows you to save costs on hiring. Outsourcing gives you access to the latest tools and technology and helps you make the most out of your IT investment.

You Want More Flexibility 

Outsourcing your IT needs is a big advantage for those who face lots of fluctuations in their business. IT provides you and your business with more flexibility and productivity in IT management.

Outsourcing takes the work of managing your IT infrastructure and all the work is handled by professional people with a great years of experience.

If fluctuations in your business are frequent, then you can just outsource your IT needs according to your requirements without spending your money on hiring a full-time IT team, or on high-technology. By outsourcing IT services from a third party, you can easily and quickly adjust your IT needs as your company evolves.

When You Can’t Meet Tech Deadlines

When you feel like your IT department is overwhelmed with the workload, and they are unable to meet the deadlines, that means it’s time to make some changes.

Most businesses rely on technology, it helps in improving productivity, efficiency, agility, and flexibility. Problems like constant server crashes, or bugs, should be solved as soon as possible.

Outsourcing IT services is a good option when your team is unable to meet the tech deadlines. It can happen when your business is growing rapidly, and you need someone who has a great expertise.

Since third-party organizations already have all the required tools and expertise, they can complete the tasks and projects within the given timeline.

You Have a High Turnover

If the turnover rate is high in your company, then it’s best to outsource your needs before having full-time staff working in your company.

Outsourcing is cost-effective and helps make sure that your projects are done on time, contributing to business productivity and improving efficiency.

Since the outsourced team already has the required tools and resources you need for your business, you don’t have to spend extra expenses on high technology.

They all are well-equipped with everything and ready to support and assist you with your IT needs. You can outsource IT services until you are at that point where you can easily hire a team of full-time IT experts for your company.

How Much Does It Cost To Outsource IT Services?

Before you hire outsourced IT services for your business, there are a few things you should clear what IT needs you want to outsource. The cost of outsourcing IT services may vary depending on what the work is, the duration of the outsourcing contract, the location, hourly rates, and the level of expertise, advice, and support needed.

When you are selecting an IT agency, the first thing you should do is compare the pricing and the quality of work they have to offer. Once this is done, you can continue with the agreement which will involve what work and tasks they have to complete and the due date of completing those tasks.

In Eastern Europe and Latin America, countries like Ukraine, Romania, Bulgaria, Hungary, Czech Republic, Columbia, Peru, Brazil, and Mexico, the average cost of outsourcing IT services ranges from $125-$255 per computer-using employee per month.

Whereas in Asia, which is known for its variety of IT professionals, the cost of outsourcing IT ranges from $25 to $40 per computer-using employee per month.

It’s important to note that the price may vary a lot depending on the requirements and IT needs. The best way to figure out is actually reaching them personally.

When you should not outsource IT needs?

Outsourcing can be very beneficial for your business, as they are always ready to offer the services that you need. But trusting your business process to a third party isn’t always risk-free.

You have to ask questions and be clear on what your requirements are, what are your expectations, and whether their services align with your requirements, the pricing also varies depending on what your IT needs are.

So you have to think carefully before outsourcing IT services.

However, there are times when you are left wondering whether you should opt for outsourcing IT services or not. Here are some cases in which you should consider before outsourcing IT services:

  • Budget Restrictions: When you are on a tight budget, outsourcing IT services may not be beneficial for your business.
  • When to handle sensitive data: Outsourcing IT services may not be a wise idea when your organization deals with highly sensitive data such as personal details, financial records, property data, etc, since there’s a risk of data leaking involved.
  • Strategic Alignment: IT plays a crucial role in running your business. Outsourcing IT services is good but they are only for short-term. Most of the organization’s strategies and objectives rely on IT. Outsourcing may not align with your long-term goals. It’s better to have an in-house IT team that understands your long-term goals and fosters innovations that meet your company’s needs.


Outsourcing IT services is beneficial when you need constant IT support, don’t have a dedicated IT staff, and you can’t manage your IT requirements.

The third party will make sure to do everything on your behalf, while you can just sit back and focus on other important business issues.

Outsourcing IT services gives you access to cutting-edge technology and you get advice and support from professional experts who make sure that all your deadlines are met on time.

You also need to look for the value that the provider brings to your company and the profit they can help you generate

After everything is discussed, you can seal the deal by signing a contract with them which involves what their work will be, and how long they will be working with your organisation, the deadlines of projects and tasks they have to complete, and so on.

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