News & Views

Why now is a good time to start outsourcing IT

by John Lane - Jun 27, 2017

With outsourced IT systems, it’s possible to add or remove hardware as the needs of your business dictate.

Networking technology has come a long way from the crowded server rooms and never-ending network cables of a few decades ago. With today’s widespread broadband and fibre internet infrastructures and web services, online businesses no longer need to rely on costly in-house systems to get up and running. Start-ups and small businesses today aren’t as heavily weighed down by capital expenditure as before, and more established companies are faced with unprecedented options for increasing efficiency.

In this blog, we’ll take a look at how Infrastructure-as-a-Service (IaaS), cloud servers and outsourcing your systems can shift your IT budget from Capital (CapEx) to Operating Expenditure (OpEx).

Outsourcing IT systems helps minimise capital expenditure

Today’s increasingly technology-driven markets favour operations that are mobile, agile, and don’t require immediate ownership of assets. As we move into a predominantly cloud-based business environment, capital and risk are becoming less of a hurdle for new businesses. The barrier to entry has dropped dramatically, and with that comes an entirely new set of rules.

As a result, many businesses are trading in the long-term value of capital ownership for the purely operational expenses of outsourcing their IT systems. And, as we enter the age of ‘Everything-as-a-Service’ (XaaS), it’s becoming possible to convert the entirety of your  IT requirements, from end to end, into operational expenses. This enables new businesses, in particular, to deliver a competitive service without requiring expensive IT assets, and provides greater opportunity for innovation with reduced risk.

Should you consider switching from in-house to outsourced IT?

The obvious advantage to outsourcing IT systems is the marginal, ongoing cost as opposed to the high capital expenses required for keeping systems in-house – not to mention the ongoing costs of maintaining them. Small and mid-sized businesses, particularly those with fluctuating monthly demands, find managed solutions most suitable, due to the economies of scale offered by Managed Service Providers (MSPs). With outsourced IT systems, it’s possible to add or remove hardware as the needs of your business dictate, and any upgrades or alterations to your infrastructure can be done on the provider’s side, meaning you can continue providing your service uninterrupted. Plus, MSPs can provide you with around-the-clock access to expert IT staff who might otherwise be out of your budget.

Businesses in the past may have seen IT solutions as nothing more than a utility to facilitate their communications and streamline workflow, but progressive business owners today are realising their potential to support key business objectives, reduce costs and drive efficiency throughout their organisations. Knowing when to outsource your IT systems starts with understanding the state of your systems today. Download our free IT health check below to find out more.


TAGS: it strategy