Outsourced Technical Support For SMEs Pros And Cons

Ability to focus on core competencies

Having a remote team ensures competent support to your in-house team. As they no longer have to cover for tasks that they have lack of expertise. 

This in turn will improve their efficiency and will maximize their time to do what they do best for your business. 

Loss of control

This is a valid concern that you can minimize as long as you know what your requirements are. 

Outsourced technical support does not have to involve the most important part of your IT. It can only stay as support and you have the power to set their access to your core data and information.

Access to cutting edge technology

Rapid improvements in technology can make any skills easily obsolete within a span of a few years. 

That is why investing too much for training of a full time staff for a specific technology or system may not be smart in the long run.

Less flexibility

This may be affected by lack of foresight on what you should outsource and what should stay in-house. 

Thus knowing your requirements beforehand is a must. 

Increase flexibility

Companies must have the ability to easily adapt to changing business landscape and market.

Outsourced tech support provides the ability to tap into various resources, skills and capacities.

Questionable savings

It is a fact that you can save 50% on operational costs once you outsource. You can easily do the math here and make a comparison to prove it. 

However, it becomes questionable if you want to get as much as 70% without a deep understanding of how outsourcing really works. 

Cost savings

A lot of businesses opt to restructure and downsize to stay competitive in their market niche. 

For example, IT help desk outsourcing provides them with much leaner overhead structures.

Risk of being held hostage by the third party provider

A reliable outsourcing provider opts to choose for sustainable projects.

Like with Magellan Solutions, we focus on the project’s sustainability, regardless of size and duration of the project.

This means there is growth in the partnership for both parties. SLA and contracts will help ease this con. 

Job security for in-house staff

Outsourced staff have an understanding that they are only employed within a limited time as stated in the SLA between your company and the third-party provider. 

This does not jeopardize your business’ reputation and you don’t have to drop your in-house employees whatever the situation may dictate. 

In fact, it helps them to effectively adjust in demand fluctuations while staying focused on their core responsibilities. 

1. Lower operating costs due to lower cost structure with 9% reduction in cost through this strategy.

2. More capital funds as investments are realigned from non-core functions to the most important processes. It also improves financial measurements by elimination of capital investments on non-core activities.

2. Access to world-class experts as extensive and knowledgeable staff can work for you without the recruitment and retention effort that you have to go through.

3. Cash infusion as all equipment, facilities, and licenses in current operation have values and are not stagnant, maximizing all resources.

3. Accelerated benefits as it can help you gain the anticipated benefits of having an outside support augment your IT operations. 

4. Access to new resources as you can expand your operations into a different geographic area. This means the ability to utilize what it can offer such as wide talent pool, tech, and best practices.

4. Shared risks because when you outsource you become more flexible, dynamic, and have a better ability to adapt to changing opportunities and challenges. 

5. Better overall IT management as it can help your outsourced team to focus on areas where you have out-of-control IT function.

5. Free resources for other core purposes that provide greater return to the business and in serving the customers.