Blog | Sep 15, 2014

Debunking 9 Misconceptions about Outsourcing IT

Debunking 9 Misconceptions about Outsourcing IT

Staff up or outsource? This is the question facing many IT organizations both large and small as they try to keep up with rapidly changing businesses and advances in technology. It’s difficult to step back from managing day to day operations to evolve the IT infrastructure and it can put undue stress on the organization. One of the best solutions you have at your disposal is to outsource IT however many organizations may have some preconceived beliefs about outsourcing and are unsure of the outcome. Here are nine misconceptions about outsourcing IT that can help you with your due diligence.

1. It is more expensive
With the adoption of cloud computing, costs now shift from capital expenses to operational expenses. Managed service providers (MSPs) package their infrastructure, application, and support services into a predictable monthly fee.  In fact, the single most important tactical reason for outsourcing IT management is to reduce and control operating costs. Due to specialization and economy of scale, companies that try to do everything in-house may incur 25 to 30% higher direct and indirect costs of internal, dedicated resources in addition to increasing capital costs to maintain an up-to-date infrastructure.

2. It is less secure
MSPs are experts at mitigating risk. As security threats grow in quantity and complexity, your organization needs expert help identifying the most important threats and effectively preventing them. With outsourcing, you don't have to be a security expert or even employ one. MSPs are experts at security, business continuity and disaster recovery. Today’s infrastructure is better than ever but sometimes it fails.  This translates into downtime, higher cost and lost data.  MSPs help mitigate this risk through 24x7 monitoring, maintenance, multiple geographically dispersed data centers and expert consultation.

3. People will lose their jobs
MSPs often set up their business to work as an extension to their client’s team. MSPs essentially fill in the gaps of a business’s IT, or take the existing load off of an overworked IT team. The best way to think of outsourcing your IT is that it won’t cause a loss in jobs, but instead will help IT organizations refocus their efforts on the business, not technology. 

4. Only big companies outsource IT
Nothing could be further from the truth. Technology is the great equalizer between the titans of industry and SMBs. SMBs can gain a great advantage by implementing newer technologies to help them scale rapidly and be agile in competitive markets without incurring the costs of hiring and retaining high priced talent that isn’t needed full time. MSPs are constantly training their teams on the latest and greatest technology advancements and SMBs can get access to these highly qualified resources without making the upfront labor investment.

The next five points will be discussed in the second part of the series...

To read Part 11, Click Here

More About TriCore Solutions
TriCore Solutions, the application management experts, provides a full suite of scalable and reliable managed application, cloud, infrastructure hosting, and consulting services to enterprise organizations. The company delivers its services and the TriCore Trusted Promise to more than 250 companies worldwide to reduce costs, raise service levels, improve customer experience, increase business agility, and accelerate innovation, unlocking the business value from their IT investments. TriCore Solutions is headquartered in Boston, MA, with offices in India and throughout North America.