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At Concept, we don't just provide amazing IT Support and IT Services to businesses in the North East of England, we also like to share some of our knowledge and experience whilst providing guidance & insight.  Here you will find the latest information, advice and news from Concept.  If there are any topics you would like us to cover, please get in touch.  

18 May 2015
Risks and Rewards for Outsourcing IT Functions

Many entrepreneurs have considered outsourcing some aspects of their business. The merits of outsourcing are rather obvious, especially since experts across different industries tout outsourcing as the answer to reducing costs on various business functions, ranging from accounting and marketing to human resources and information technology.

It seems possible to run your business with as few employees as possible, but why do many companies opt for IT support in Middlesbrough, and what are the possible ramifications for other aspects of the business?

Why Consider IT Support in Middlesbrough?

Some of the reasons to consider getting professional IT support include:

1. To reduce and maintain better control of operating costs. Using external IT services eliminates costs associated with having in-house employees, including training, taxes, management oversight, and health insurance, among others.
2. Improve organisation focus. Outsourcing allows your employees to focus on your business’s core competences while another firm addresses your other needs.
3. Access to great capabilities. Outsourcing your IT needs to a company that specialises in the areas you require gives you a much better return on investment. Instead of relying on the knowledge and expertise of a single, in-house employee, you can benefit from the varied and collective experience of a team of IT experts.
4. Lack of internal resources. If you are starting a business and don’t have anyone who can manage your IT needs while handling other critical operational functions, and hiring many employees is not a viable option, outsourcing offers a viable alternative for both interim and long-term.
5. Optimise restructuring benefits. Businesses need to restructure to improve quality, service, speed, and costs. However, focusing on the primary operations can cause you to neglect the non-core business functions that still need handling. Outsourcing allows you to restructure without compromising on the non-core business needs.
6. Reduce risk. With technology constantly changing, it can be both expensive and time-consuming to keep up with new developments necessary to make your business processes most efficient. Professionals must keep up on industry best practises, and working with an IT support company will reduce both costs and obsolete applications.

Despite the benefits of working with an external IT support company, there are always risks associated with giving someone else responsibility for a component of your business. Common concerns include:

• Wondering whether you hired the right firm to manage your IT.
• Whether they will do whatever is necessary to keep things in good order, and in a timely manner.
• How well the professionals will get along with your existing employees or departments.

In this regard, there are certain risks that business owners should consider when outsourcing IT, including:

1. Challenges in outsourcing some IT functions. Information technology affects all aspects of your organisation, from everyday tasks to complex automated functions, so you need a qualified vendor to ensure good flow.
2. Loss of control. Some critics argue that there are concerns of data confidentiality and disaster recovery when working with external firms.
3. Negative impact on employee morale. This is a particularly major concern if you have to lay off some employees and outsource their duties, causing the employees who remain to worry that their jobs may also be at risk.

Many of these risks can be mitigated by conducting proper research before hiring an IT support company in Middlesbrough or wherever you are located. Even so, there are many rewards for outsourcing your IT functions, including access to the latest in technology, access to high quality staff, cost savings, flexibility, and better access to resources.

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