When should you outsource IT services?
With technology continuing to create competitive edge, the pressure’s on to innovate, grow, and adapt quickly. But as tech evolves at lightning speed, in-house teams can struggle to deliver innovation whilst also keeping the lights on. That’s why many companies turn to outsourcing their IT operations. The big question is: when’s the right time to make the move?
When scaling the business
As businesses grow, so do their IT demands. Scaling operations typically requires more resources, more robust infrastructure, and a broader range of technological expertise. If a company is experiencing rapid growth, the in-house IT team may struggle to keep up with the increased workload. Outsourcing IT operations during this phase allows businesses to quickly scale their infrastructure, support services, and technical needs without the delay of hiring and training new staff.
Key Indicators
- Business expansion (e.g. new locations, increased user base.).
- The need for around-the-clock IT support.
- Rapid growth that puts pressure on current systems and networks.
When technology becomes more complex
Technology is evolving at an unprecedented pace, with new software, tools, and cybersecurity threats emerging regularly. Outsourcing IT services allows businesses tap into the expertise of specialists who are up-to-date with the latest innovations and compliance requirements, ensuring seamless adoption of new technologies.
Key Indicators
- The need for advanced expertise (e.g. virtualisation, cybersecurity).
- Difficulty in keeping up with software updates, integrations, and security measures.
- Transitioning from legacy systems to more modern technology solutions.
When costs need to be optimised
Cost efficiency is a primary driver for outsourcing. Managing an in-house IT department comes with significant overheads – from salaries and benefits to infrastructure investments and ongoing training. When businesses are looking to optimise costs without sacrificing quality, outsourcing provides a flexible, scalable solution. Companies can convert fixed IT costs into variable ones, paying only for what they need, when they need it.
Key Indicators
- Increasing internal IT costs.
- Budget constraints that limit internal hiring and upskilling.
When cybersecurity becomes a growing concern
If a business is struggling to maintain robust cybersecurity measures or has experienced a breach, outsourcing IT operations to specialists can significantly reduce risk. Third-party providers often offer comprehensive security services, including proactive monitoring, threat detection, and incident response, ensuring higher levels of protection.
Key Indicators
- Increasing volume and complexity of cyber threats.
- Limited internal expertise in cybersecurity.
- Security compliance requirements (e.g., critical national infrastructure resilience, Cyber Essential).
When internal IT talent is lacking
Finding and retaining IT talent is a challenge in many industries. The demand for experienced professionals often outpaces supply. If your organization is facing talent gaps or struggling to attract the right people, outsourcing can provide immediate access to a deep pool of expertise without the recruitment and retention headaches.
Key Indicators
- Difficulty hiring or retaining qualified IT staff.
- Gaps in expertise needed for current and future IT projects.
When IT operations are distracting from core business
For many organisations, IT is not their core business function but is critical for supporting day-to-day operations. When IT becomes a distraction or pulls attention away from core competencies, it can slow down innovation and growth. Outsourcing allows businesses to focus on their strengths while leaving IT operations in the hands of dedicated professionals.
Key Indicators
- IT management is taking time away from strategic business initiatives.
- Slow decision-making due to IT bottlenecks.
- Core business functions are being neglected due to IT demands.
When business continuity and disaster recovery plans need strengthening
Disruptions like cyberattacks, natural disasters, or system failures can devastate a business. An experienced IT outsourcing provider can implement and manage robust disaster recovery and business continuity plans, minimising downtime and ensuring that operations can quickly recover from unforeseen events. If your company lacks a solid recovery plan or the resources to implement one, it may be time to consider suitable alternatives.
Key Indicators
- Outdated strategies or no formal disaster recovery plan..
- Limited resources to ensure business continuity in a crisis.
- Concerns about the reliability of current infrastructure during critical incidents.
For businesses at any stage, understanding the timing of this decision ensures that they are better prepared to leverage technology, drive innovation, and remain competitive. Whether it’s to scale rapidly, stay ahead in technology, protect against cybersecurity threats, or refocus on core competencies, the right timing can make all the difference. By carefully assessing your company’s current needs and challenges, you can determine when outsourcing will provide the greatest value and desired successes.
Eileen O’Mahony
General Manager, WM Promus