It's a tough world out there for modern businesses. If it wasn’t enough having to manage cash flow while hitting those monthly targets, you additionally have to worry about the ever-changing technical landscape and how it affects your internal processes and consumer behaviour. And it’s not like you can simply stick your head in the sand and hope for the best – doing so will only give your tech-savvy competitors everything they need to deliver your business its coup de grace.
It’s in this cutthroat environment that the benefits of outsourcing key processes – like IT – truly come to light. Many business owners and financial advisors looking to cut costs assume that outsourcing is a luxury, and that it’s cheaper to either do it themselves or hire dedicated in-house staff. But this simply isn’t the case. In their seminal paper The Productivity Benefits of IT Outsourcing, Christopher Knittel and Victor Stango demonstrate that outsourcing can actually lower overall costs while showing a healthy ROI, as well as boosting productivity. They focused on data from the United States credit-union industry between 1992 and 2005. Over that time period, switching from internal IT to outsourced IT reduced operating costs by approximately 30%, ultimately saving the industry as much as 6 million USD every year.
While that might seem fairly grandiose and removed from the needs of a startup or small business, the benefits ofoutsourcing IT processes to a capable Managed Service Provider (MPS) like PowerNET are evident for all business types.
Here are five key ways that PowerNET can help your company reduce overheads while maximising productivity:
1. Your professionals can focus on their core business activities
By outsourcing processes that are necessary, but also time-consuming and don’t directly contribute to the growth of your business, your company’s professionals will be free to focus on areas of the business that generate income and drive growth. The cost of outsourcing will be massively offset by this increase in productivity, as you’re no longer paying your skilled employees for time-consuming grunt work.
2. Improved scalability and flexibility
By outsourcing IT processes, you’re not bound by limitations like equipment, network infrastructure and server capacity. This means that as your business grows, you don’t need to drastically increase your IT expenditure. You’re also more flexible as you can hire specific experts as you need them, without having to grow your own internal team.
3. Instant access to IT professionals
If you don't know IT, how would you even know what to ask if you were interviewing your own IT manager? This is a crucial consideration, because the world of IT demands a high level of technical know-how. By outsourcing IT with an MSP like PowerNET, you can rest assured that you’re only dealing with the best IT professionals.
4. Save costs on employee benefits
Outsourcing IT to a high-quality MSP also brings considerable savings as a result of requiring fewer in-house staff. The savings go further than payroll taxes, health insurance and paid vacation time, as you’ll also need less office space and save on office equipment and related maintenance.
5. Decreased downtime
An MSP like PowerNET is available 24 hours a day, seven days a week to ensure that your IT infrastructure is up and running. This will reduce downtime considerably, which directly leads to higher levels of staff productivity and increased employee satisfaction – downtime is a key cause of worker frustration and low productivity.
PowerNET can provide efficient IT services to eliminate unnecessary costs and increase productivity – allowing your business to be flexible as it grows. Contact us to learn more.
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