Outsourcing IT Services: Why do Businesses Love It?


Outsourcing IT Services: Why do Businesses Love It?

Saving money is a significant motivation for outsourcing IT services. More than 4 out of 10 companies that are outsourcing their services say that their outsourced IT projects are meant to save money.

The digital world can see how evident the popularity of outsourcing is today. It isn’t only for startups but even for scaling businesses. Every industry has a task to outsource: be it accounting, software and development, finance, and almost all types of services that can be done by a third party.

Let’s take a look at how outsourcing IT services can benefit your business.

Outsourcing IT Services

More than 75% of businesses all over the world are happy about their outsourcing partners..

meeting using laptop - Outsourcing
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One of the most popular services to outsource is IT services. There’s no doubt about it as outsourcing makes fixed IT expenses become variable costs. This allows you to manage your IT funds efficiently based on your priorities. 

What are the Financial Impacts of Outsourcing IT Services?

Among the many benefits, the positive financial impact of outsourcing is the most significant reason for most businesses.

Recruitment Costs

we are hiring sign - Outsourcing
Photo by Eric Prouzet on Unsplash

From advertising open positions to sorting top applicants and choosing the right person for your IT team. The recruitment process is time-consuming and can get complicated and expensive. Typically, working with an outsourcing company can remove all these tasks from your plate. 

More than 45% of outsourcing companies say that they get access to skill sets that are not easily available in-house.

Retainer Costs

Businesses face the same issue year after year, after year: their budget. Keeping people at your company can be a struggle and expensive. However, partnering with an outsource company lessens or eliminates budget complications because you only pay for the services you need. Not to mention that you can avoid the expensive business overhead costs. Outsourcing services rather than hiring employees is an efficient way to manage your staffing requirements.

Employee benefits

The amount you spend on your in-house IT team doesn’t only include salaries. Often, it is only a small amount of the costs involved with employing staff. Your business needs to pay for parking costs, life, and health insurance, and so much more. You also need to shoulder their pay for the holiday, maternity, and sick leaves. Typically, only the work hours on your IT functions are billed when outsourcing.


cable and equipment - Outsourcing
Photo by Thomas Jensen on Unsplash

Never worry about directly covering the internet, electricity, software, or even espresso machines that your in-house IT team needs. In many cases, these are covered by your outsourcing partner. 

Manageable Costs

Given that you only need to pay for services you ordered, outsourcing makes it much easier for you to plan your budget. Forget about your additional tasks and expenses brought by annual appraisal and employee evaluation.

Scale on Demand

With an in-house team, you have a limited number of people working for you. If your workload increases, so does the cost of hiring more employees or adding more hours to existing ones. 

With an outsourced team instead, you get to scale up or down depending on your needs at any given time without having to worry about hiring new employees. Whether there’s an increase in workload or less work available than expected, you don’t need to worry about adding to or laying off existing ones.

Final thoughts

In conclusion, there are many reasons why a company might choose to outsource its IT services, but whichever one it might be, it is always important for them to consider the relevant costs and liabilities that could result. 

These are only 5 out of the many positive financial impacts of outsourcing IT services for businesses. Hence:

The global IT outsourcing industry is expected to grow by more than $98 billion from 2022 to 2024.

In conclusion, there are many reasons why a company might choose to outsource its IT services, but whichever one it might be, it is always important for them to consider the relevant costs and liabilities that could result.

As we have briefly covered above, there are several factors involved in outsourcing services, including personnel and equipment. These can have a huge impact on your bottom line if managed improperly.

The good news is that outsourcing companies take care of all of these aspects for you. This leaves you with more time to focus on creating a competitive edge instead of maintaining it. Schedule a call with us today to know how you can enjoy these financial impacts for your organization as well.