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Why SMBs should make use of IT Outsourcing?

As we emerge from the pandemic, SMBs face an uphill task to get back on track with organizational goals with a mix of old and new operational challenges. The first and foremost among these is the struggle to keep costs down in uncertain market conditions – even as security risk management becomes more insistent than ever with rampant ransomware and cyber attacks. In 2017, the IT expenditure of global SMBs was $574 billion. In 2021, it was expected to reach $684 billion, with the number set to increase even higher in 2022. The pandemic also pushed nearly 70% of SMBs towards an intensified usage of digital technologies as they push for digital transformation at large. Cohesive digital transformation strategies will also need to include elements of leadership and culture, employee engagement, and execution. SMBs will also need to fine-tune and continue accommodating the remote work and hybrid work cultures going forward with adequate security and ease of collaboration for all. SMBs are also finding it increasingly hard to hire (and retain) professionals with the necessary skills for effective IT infrastructure and data management. Small firms have to go toe-to-toe with larger, more well-resourced organizations to compete for staff. 

Given all the operational restraints and complexities currently at play, IT outsourcing is fast becoming a critical necessity for small and medium businesses. It is the stepping stone that enables businesses of any caliber to take off and match pace with much larger companies and enjoy the advantages of economies of scale even without the benefit of massive footprints. Outsourcing IT operations to an experienced third party can enable numerous benefits for SMBs that we will cover in the scope of this article. IT Outsourcing in Houston can help SMBs achieve long-term sustainable growth without overstretching limited IT budgets. 


Top 6 Reasons To Outsource IT For Small Businesses

Risk Reduction

IT outsourcing can reduce the risk of data breaches and other security risks by keeping your systems protected. In addition, it provides a great way to ensure that the right person is hired for your IT position. With an established outsourced team, you won’t have to worry about losing business continuity or experiencing downtime because of a lack of IT support.

Downtime is Expensive

According to a recent report by Gartner, businesses lose an average of $5,600 per minute when their systems are down. That means that if you don’t have a reliable IT partner in place and suffer an hour-long outage, you could lose more than $60,000!

By opting for IT Managed Services Houston, your business can stay up and running 24/7 so that downtime doesn’t even become an issue. In addition to managed services, most reputed MSPs also offer continuous remote monitoring that can alert your teams the moment something goes amiss or a security incident requires human attention. 

Lower and Predictable Costs

Outsourcing can help SMBs stick to their annual budgets. An outsourced IT department has the requisite industry expertise and skills to keep costs down, so you remain protected from expensive surprises. An outsourced IT department also frees up internal resources to focus on business growth and development, rather than having them spend time and money on routine IT tasks.

SMBs often struggle with staffing issues and high employee turnover rates, which can lead to a complete lack of continuity in operations when staff leave or are replaced. Outsourcing provides an effective solution for this problem as well by providing access to fully trained staff who can be engaged to work remotely or on-site as and when your business requires it. IT Support Houston helps you to continue seamless operations regardless of increased demand without sacrificing quality or productivity levels.

Affordable Enterprise-Level Expertise

In-house IT staff at small businesses is often made up of generalists. While they may know a little bit about everything from programming to networking, they may lack niche expertise or experience in handling higher-order issues that arise with your tech or tech strategy.

In contrast, outsourced IT specialists are often experts in one area or another (such as web development or cybersecurity). This lets them provide far greater value than an internal specialist could ever hope for— at a fraction of the cost. Outsourcing your IT services also frees up your staff members so they can focus on what matters most—your business!

Access to Experienced IT Professionals

SMBs often stand to gain more from outsourcing than their larger counterparts. One of the major advantages is that SMBs gain access to experienced professionals in an industry where expertise can be difficult to find locally. As your company grows, this enables you to easily scale up without having to train new employees yourself or, worry about them coming in with a different skill set than what the business needs. If your staff is sick or on vacation, you always have backups who can get things done quickly and effectively to nip downtimes in the bud.

Efficient Tech Upgrades

IT outsourcing companies are already familiar with the ins and outs of technology, so they can bring in strategic expertise to help you prioritize upgrades. They also handle all implementation including regular security patches and updates. More importantly, they can bring in significant cost benefits by leveraging their relationships with software and hardware vendors in order to get you the best deal possible. Companies also get to benefit from economies of scale as they don’t need to pay exorbitant upfront costs for new hardware and software licensing as the outsourcing partner supplies them with the most relevant cutting-edge technology tools. This means companies no longer need to worry about grappling with technical jargon or finding qualified contractors themselves.


Scott Young

Scott Young, is the president of PennComp LLC, an IT Support Houston company. Being a CPA, Six Sigma Master Blackbelt, Change Management Certified and Myers Briggs Qualified, Scott’s expertise is reflected in PennComp as a leading IT company for computer services and network integration. PennComp utilizes Six Sigma methodologies and practices in their service delivery and offers state-of-the-art monitoring and management tools to their clients.