What is IT Outsourcing?
What is IT Outsourcing?

Outsourcing Managed IT Services Enhances Productivity

In today’s ever-changing technological environment in which businesses must operate, knowing exactly what IT resources should be utilized and how to best implement those resources can be daunting. Most large organizations will have an IT department within the company who focuses solely on these questions, but this type of focus is not always available to companies for a variety of reasons. These situations are where IT outsourcing comes in.

What exactly is IT outsourcing?

IT outsourcing refers to the use of external service providers for a business’s IT needs. By outsourcing services, organizations are able to ensure that their business processes, application services, and infrastructure solutions are working efficiently.

When outsourcing IT, or utilizing managed IT services, the common methods of seeking outsourced services is by subcontracting an independent third-party company (or even an individual) who is an expert in the IT space. You might also hear the term ‘virtual’ applied to outsourcing services—such as using virtual staff for IT services. Such virtual staff can be located anywhere in the world in order to provide managed IT services.

The specific outsourcing services commonly available vary by organization and need, but they typically include the following:

  • Web development and hosting
  • Software or application development
  • Infrastructure selection and installation
  • Database development and management
  • Maintenance and support for IT products; and
  • General telecommunications.

Who should consider outsourcing services?

When utilizing managed IT services, companies are able to efficiently identify the right solutions and strategies for their enterprise without needing to have a full-time IT professional in house. Particularly for small businesses and/or organizations with limited budget and resources, IT outsourcing enables the most effective running of their IT needs by reducing costs, accelerating the delivery of their needs, and taking advantage of external expertise that’s already waiting out on the market.

IT outsourcing even allows companies to increase their flexibility by increasing virtual staffing during periods of increased demand (new infrastructure installations, seasonal demands, etc.) and releasing them when the demand drops, a prospect not as feasible with an in-house IT management department.

The key point is that there are certain enterprises for which IT outsourcing with a third party would be significantly cheaper and more effective than building an in-house IT management team. Examples of organizations who commonly utilize outsourced services for such savings include new and young startup companies, non-profit organizations who need to maximize the portion of their budget going to their missions rather than overhead, or simply smaller companies who have inherently limited budgets for hiring additional employees.

Make no mistake, though– large companies, too, have reason to use managed IT services. Specifically, these larger companies might have an IT department but still find it prudent to outsource its data storage needs in order to avoid buying and maintaining storage devices on its own. In fact, most large companies tend to outsource a portion of their IT functions. So, regardless of whether it’s necessary to outsource part of IT functions or the entirety of IT management, outsourcing services are a critical tool for companies to streamline their solutions and maximize internal efficiency.

How to implement IT outsourcing

For any number of reasons, you might find your company can benefit from complete IT outsourcing or farming out specific managed IT services. Several online resources exist that can help you find independent individuals for managed IT services, but oftentimes it’s more useful to contract with a third-party company whose entire purpose is to put their experts to work for you. These IT outsourcing organizations have expertise across all sorts of potential solutions and programs, whereas an individual can be limited in their experience and knowledge.

If IT outsourcing seems like it could benefit your organization, VanTech is an expert in effectively and efficiently applying the solutions that will most benefit you. Please reach out to VanTech today at (973) 744-1660.