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The Top 5 Reasons Small Businesses Should Consider IT Outsourcing

Small businesses often face a multitude of challenges when it comes to managing their IT infrastructure. From limited budgets to a lack of expertise, it can be difficult to keep up with the ever-evolving technological landscape. This is where IT outsourcing can come in as a game changer.  


By entrusting the management of their IT needs to a third-party service provider, small businesses can focus on their core competencies and improve their overall productivity. In this article, we will explore the top five reasons why small businesses should consider IT outsourcing. From cost savings to gaining access to the latest technology, we’ll take a deep dive into the benefits of outsourcing IT services and how they can help small businesses thrive in today’s competitive marketplace. So, whether you’re a startup or an established small business owner, read on to find out why IT outsourcing could be the right choice for you.  


The Top 5 Reasons Small Businesses Should Consider IT OutsourcingBenefits of IT outsourcing for small businesses  

1. Cost savings  

One of the most significant benefits of IT outsourcing is cost savings. Small businesses often have limited budgets, and IT infrastructure can be a significant expense. By outsourcing IT services, businesses can reduce their overhead expenses and only pay for the services they need. Outsourcing also eliminates the need to hire in-house IT staff, which can be a significant cost savings. Additionally, outsourcing providers can leverage their economies of scale to provide IT services at a lower cost than businesses could achieve on their own.  


2. Improved efficiency and productivity  

Small businesses often struggle to keep up with the latest technology trends and advancements. By outsourcing IT services, businesses can access the latest and most advanced technology without the need to purchase and maintain it themselves. IT outsourcing providers also have specialized expertise in managing IT infrastructure, which can lead to improved efficiency and productivity. This allows small businesses to focus on their core competencies and improve overall performance.  


3. Access to specialized expertise  

Small businesses often lack the in-house expertise required to manage complex IT infrastructure. By outsourcing IT services, businesses can access a team of highly skilled professionals with specialized expertise in various areas of IT. This includes areas such as cybersecurity, cloud computing, and data analytics. Outsourcing providers can also provide ongoing training to ensure businesses stay up-to-date with the latest technology trends.  


4. Focus on core business functions  

Small businesses often struggle to balance their IT needs with their core business functions. By outsourcing IT services, businesses can focus on their core competencies and leave IT management to the experts. This allows businesses to allocate resources more efficiently and focus on growth and expansion.  


5. Enhanced security and risk management  

In today’s digital landscape, cybersecurity threats are a significant concern for small businesses. IT outsourcing provides access to dedicated professionals who specialize in cybersecurity measures and can help implement robust security protocols. These experts stay abreast of the latest security threats and can proactively safeguard the business’s sensitive data and valuable information. Moreover, outsourcing IT tasks also helps mitigate risks associated with technology obsolescence, compliance issues, and data breaches.  


There is no question about it ー small businesses will gain a lot of benefits from IT outsourcing, and in fact, many companies are already enjoying its advantages.  


As recent data has shown, it’s a business practice that’s growing in popularity, and from it, several trends have emerged showing the industry’s good health.  



IT outsourcing trends and statistics  

1. Increasing adoption  

The COVID-19 pandemic accelerated digital adoption by several years, forcing many companies to turn to new technologies for convenience and to continue building connections with their customer base. As such, IT outsourcing thrived and expanded in this new, innovation-minded environment  


According to a report by Statista, the worldwide revenue for this year (2023) is projected to reach $430.50 billion and is expected to grow at an annual rate of 8.07% from 2023-2027. This highlights the increasing adoption of IT outsourcing by businesses worldwide.  


2. Cloud computing and managed services  

The adoption of cloud computing and managed services has become a prominent trend in IT outsourcing. Businesses are leveraging cloud infrastructure and platforms provided by outsourcing partners to enhance scalability, flexibility, and cost-effectiveness. A survey conducted by Deloitte found that 93% of organizations are considering or are already adopting cloud services.  


3. Focus on security  

With the rise of cyber threats and data breaches, businesses are increasingly concerned about security. In fact, in a 2021 report done by Syntax, 83% of IT managers are looking to outsource their companies’ IT security needs. In addition, Deloitte’s global outsourcing survey in 2022, identifies cybersecurity and data analytics as the primary functions outsourced by companies. Outsourcing providers are addressing this by investing in robust security measures and specialized talent.  


4. Nearshore and onshore outsourcing  

While offshore outsourcing remains popular, there is a growing trend towards nearshore and onshore outsourcing. Nearshore outsourcing refers to outsourcing IT services to countries in close geographic proximity, while onshore outsourcing involves partnering with local service providers. This shift is driven by the desire for better collaboration, cultural affinity, and reduced time zone differences.  



How to choose the right IT outsourcing provider for your small business  

Choosing the right IT outsourcing provider is critical for small businesses. When selecting a provider, businesses should consider factors such as expertise, experience, and cost. It’s also essential to choose a provider that aligns with the business’s goals and values. The provider should be able to provide customized solutions that meet the business’s specific needs. It’s also important to check the provider’s track record and reputation to ensure they have a history of delivering high-quality services.  




IT outsourcing can offer significant benefits for small businesses.  

There are several ways outsourcing can provide advantages to small business around the world: by reducing costs, improving efficiency and productivity, and providing access to specialized expertise. However, businesses should carefully consider the risks and ensure they choose the right outsourcing provider. By doing so, small businesses can focus on their core competencies and thrive in today’s competitive marketplace.  

Connext Global Solutions helps companies build custom, dedicated support teams in the Philippines. Learn more about outsourcing IT to Connext Global Solutions

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Expand your outsourcing know-how beyond IT. Visit our blog to explore the dos and don’ts of outsourcing marketing for small businesses, offering valuable insights to complement the top reasons for considering IT outsourcing in your business strategy.