Why outsource your IT? That’s a common inquiry in internet searches. Imagine this…. On Monday morning as you walk into your office, you learn that your company has become of victim of ransomware. Therefore, the hackers are now demanding ransom for releasing your data and documents. You are the COO of a mid-size real estate company. Since you have a small IT team or a single IT resource on your staff. What do you think is going to be the impact on your business operations?
Most likely, your IT resources will be consumed trying to restore the affected servers. Meanwhile, the employees in your organization may not get any service or support from your limited IT resources. This is not just a tale, but in fact similar incidents happen all the time. And that’s an example of “why outsource your IT”. Managed IT Service is not just an outsourcing service, but an insurance to mitigate risks against disruption of IT services in any adverse scenario. According to Forbes Technology Council, the need for outside professional expertise is one of the biggest reasons companies outsource.
To Outsource or Not to Outsource…that is the Question!
More and more companies are turning to managed IT service providers. Reasons vary, by the size and nature of each company, as well as their business priorities. Although outsourcing doesn’t always mean offshoring of work, it is a politically loaded term, with an associated moral dilemma.
For smaller real estate companies, outsourcing doesn’t necessarily mean laying off people and taking work overseas. When smaller real estate companies talk about outsourcing, they are thinking about getting IT services from specialized IT firms with expertise in various areas within IT services domain, something for which they don’t have the capacity or skill set to manage internally. Larger organizations outsource the non-value add or repetitive IT tasks or off-hours coverage. This way, the internal IT can focus on the strategic and value add work.
Pros
- Control IT expenditure: Converting fixed IT costs into variable costs, allows you to control your budget. This way, you pay for what you need and when you need it.
- Trained, experienced, qualified, and certified resources: The depth and breadth of experience matters. Therefore, the best MSP have specialists that meet this criteria.
- Quickly implement new technologies: A quality managed IT service organization will have the resources to start new projects sooner. Handling the same project in-house might involve weeks or months.
- IT support can be around the clock: Most internal IT staff works regular business hours, while many IT outsourcing firms have some offshore staff in different time zones.
- Focus on your core business: Outsourcing non-value add services can help your business focus on your core competencies.
- Industry knowledge for risk mitigation and better performance: Industry competition, government regulations, financial conditions, and technologies change very quickly, and thus exposes businesses to inherent risks. Therefore, a real estate industry specialized IT outsourcing company, can assume much of this risk for you.
- Level playing field: Outsourcing can help small companies by providing them access to the similar technology and expertise that large companies may have.
Cons
- Rarity of industrial domain knowledge in managed IT providers: For example, most generic managed IT service organizations do not possess specialized knowledge about the real estate industry. At first glance, it may not matter to you whether the people who are managing your corporate network know much about your industry. However, it can make a huge difference when it comes to IT strategy, IT expenditure, business application project management, and coordination with real estate related application support.
- You can lose some control: Many managed IT service firms tend to service multiple clients at any given time, and if solid SLAs (service level agreements) are not in place, you may not receive the focus you deserve. That lack of focus could be detrimental to your business.
- Hidden costs: Generally, IT outsourcing is considered cheaper, so be careful not to get ripped off. MSPs will often provide lengthy contractual agreements, and they’ll include plenty of fine print. If you don’t read the terms carefully, you could get hit with unexpected costs. Work with a trustworthy company and ask for references.
- IT support staff may be in different time zones: Many IT outsourcing firm have offshore staff. Where in some cases it helps because they can perform preventative maintenance off peak hours, you also need help during your business hours. Make sure that your MSP has coverage for your business hours, and require this included in your service agreement.
- Moral dilemma: Many people experience a moral dilemma when considering outsourcing anything. Some feel they are denying growth opportunities to local or in-house resources, by outsourcing work. However, you may research your MSP to ensure that they have a combination of both competent onshore and offshore resources.
Conclusion of why outsource your IT
Managed services doesn’t have to be a politically loaded term. In many scenarios, it can be a blessing. Most businesses are associated with a specific industry, and it is wise to get managed services from experts of that particular industry. Weigh the pros and cons of IT outsourcing to determine its suitability for your organization. It is important to get the right people on board who comprehend your business and can deliver you a high quality service, so that you can focus on your core business.
How we can help
At CRES Technology, we are the answer to the question “Why outsource your IT”. That’s because, we take pride in our real estate industry knowledge and experience. Our team consists of specialists in each area of information technology. Contact us for a free evaluation of your technology and IT services. This no obligations analysis includes an eight hours pro bono engagement for cover the following topics:
- IT Service Analysis
- Technology Evaluation
- Cyber Security Analysis
- Business Process Management
- Document Management
About Waqar Hussain
CRES Technology -Director IT Services
A technology leader with outstanding knowledge, technical expertise, and a proven track record of leading complex infrastructure projects and managing help desk teams.