Outsourcing IT to an overseas company can be a power move for any small business in the USA. However, finding and hiring IT professionals is too expensive and there’s a significant period of time that has to pass before you see the results and you can cash in on your investment.
Remember, it’s not just the costs you cut through outsourcing your IT. There are plenty of other benefits for small businesses they need to take into consideration before they sign any deals.
Let’s learn all about small business IT outsourcing and how it can help companies scale up more quickly than initially planned.
Small Business IT Outsourcing: What Does it Entail?
IT outsourcing for small businesses refers to the practice of contracting out various information technology (IT) functions and services to external third-party providers. These providers can be specialized IT companies or consultants who offer their expertise and services to help small businesses manage and maintain their IT infrastructure, software applications, and technical support.
Small businesses often have limited resources and budgets, which can make it challenging to establish and maintain a robust in-house IT department. Outsourcing IT services allows these businesses to access specialized skills, experience, and technology without the need to hire full-time IT staff or invest heavily in infrastructure and equipment.
9 Common IT Services You Can Outsource
An experienced outsourcing team solving a task!
Different companies have different outsourcing needs. For some, this can be the entire IT infrastructure, which means entire remote teams, team leaders, product owners and developers. For others, it’s just a specific area such as AI, for instance.
We’ve listed the most common IT services small companies need help with.
Technical Support
Outsourced technical support services involve providing timely assistance to address hardware and software issues that employees or customers may encounter. This includes troubleshooting problems, offering solutions, and guiding users through technical difficulties.
Outsourcing technical support can be particularly beneficial for small businesses, as they might not have the resources to maintain a dedicated in-house helpdesk team. Outsourced providers can offer various levels of support, such as phone, email, or live chat, to ensure that technical issues are resolved efficiently and users can continue their work without extended interruptions.
Network Management
Network management encompasses the setup, maintenance, and optimization of a business’s network infrastructure. This involves ensuring that all devices are connected, data can flow smoothly, and security measures are in place to protect against unauthorized access and cyber threats.
Outsourced providers can design and configure networks based on the business’s needs, monitor network performance, troubleshoot connectivity issues, and implement security protocols to safeguard sensitive data. Regular maintenance and updates can also be performed remotely, reducing downtime and improving network reliability.
Data Backup and Recovery
Data is a critical asset for businesses, and ensuring its protection is essential. Outsourced IT providers can help small businesses establish data backup and recovery plans to safeguard against data loss due to hardware failures, accidental deletions, or other unforeseen events.
These providers can set up automated backup processes, store data in secure off-site locations, and develop disaster recovery strategies. In case of data loss, they can efficiently restore the backed-up data, minimizing downtime and reducing the potential impact on business operations.
Cloud Services
Cloud computing offers scalability, flexibility, and cost-effectiveness for small businesses, and outsourcing providers can play a pivotal role in leveraging cloud solutions. They can assist in selecting the right cloud platforms and services, migrating existing applications and data to the cloud, and managing cloud resources.
This includes monitoring performance, ensuring security and compliance, and optimizing cloud usage to control costs. Outsourcing cloud management allows small businesses to focus on their core operations while enjoying the benefits of cloud technology.
Cybersecurity
In the digital age, cybersecurity is of paramount importance to protect sensitive business data and intellectual property from cyber threats. Outsourced cybersecurity providers can help small businesses implement robust security measures, including firewalls, intrusion detection systems, and encryption protocols.
They can also conduct vulnerability assessments to identify potential weaknesses in the IT infrastructure and applications.
In the event of a security incident, outsourced experts can respond swiftly to contain the breach, mitigate the damage, and assist in the recovery process.
Software Development
For small businesses with unique software requirements, outsourcing software development can be a cost-effective way to create custom applications or websites.
Outsourced development teams can work closely with the business to understand its needs, design and develop tailored solutions, and provide ongoing maintenance and updates.
Infrastructure Management
Generally, managing physical IT components like servers, hardware, and data centers can be complex and resource-intensive.
Outsourcing infrastructure management allows small businesses to offload these responsibilities to experts who can monitor, maintain, and upgrade the infrastructure as needed. This approach eliminates the need for businesses to invest in expensive hardware and ensures that the IT environment remains up-to-date and efficient.
IT Consultation
IT outsourcing providers can serve as strategic partners for small businesses, offering expert advice on technology solutions that align with their goals and growth plans. They can assess the business’s current IT landscape, identify areas for improvement, and recommend technology upgrades or solutions that enhance efficiency and competitiveness.
This consultation can encompass areas such as software selection, hardware upgrades, process optimization, and digital transformation initiatives.
3 Biggest Problems When Outsourcing IT (And How to Overcome Them)
Coding becomes the least of your problems when you find the wrong IT outsourcing partner!
Choosing Your IT Outsourcing Partner
Finding your outsourcing partner is crucial. With IT, it is a bit specific because not all outsourcing companies have the necessary infrastructure to support you and do the work needed.
Especially if you are looking to scale up. Look into their reputation, experience, client reviews, and case studies. Check if they have worked with businesses of similar size and industry. The best way to set up the right company is to talk to them and see if this is something they will be able to achieve.
Data Security and Privacy
When outsourcing IT services, you’re entrusting sensitive business data and information to a third party. This can be problematic when you outsource software and code in general.
Ensure that the vendor has strong data security measures in place, including encryption, access controls, and compliance with relevant data protection regulations (e.g., GDPR, HIPAA). Clearly define how your data will be handled, stored, and protected and ensure that all of the people follow such rules.
Hidden Costs and Extra Fees
While outsourcing can save costs compared to maintaining an in-house IT department, it’s important to understand the full scope of costs. Some vendors might offer a low initial rate but charge additional fees for certain services or unexpected issues. Clarify pricing structures and inquire about potential extra charges upfront.
A large number of outsourcing companies that specialize in IT come from Europe, but also Asia. Keep in mind that laws in some countries where the companies are established aren’t as strict, so you need to be 100% sure who you are sending money to. The best way to find an outsourcing company is through a US-based business who needs similar service and see who they work with and if they can recommend a company.
Don’t be afraid to shop around until you find an outsourcing partner that will satisfy your needs.
Spend Extra Time Researching Outsourcing Companies
All these problems come up when you don’t find a reliable outsourcing company. As you’re running a small business, you probably don’t have any money to waste. Therefore, make sure you find a company that is reliable and trustworthy. Never rush finding a partner and if there’s something fishy, take a step back and think about the offer.
We make it seem as if outsourcing businesses are shady. That’s definitely not the case. Luckily, a large majority of businesses who provide IT outsourcing services are legitimate, but there’s always that small percent of either scammers, but more poorly-organized companies and incompetent businesses that offer outsourcing services.
And we want you to be 100% sure before you make a decision. Trust your gut, schedule one or more calls and ask questions to get the idea of an outsourcing business you will be partnering with.
13 Questions to Ask Your Outsourcing Partner Before You Agree to a Deal
We’ve highlighted the importance of finding a good IT outsourcing company to handle all of the necessary tasks. To help you out in your search, we’ve come up with a list of 13 questions that will help you understand which company you should work with.
Keep in mind that you can adjust these questions to fit your needs and the company’s background you will do a research of before you get to an interview.
Best questions to ask an outsourcing company:
- How long have you been providing IT outsourcing services?
- Can you provide examples of similar projects you’ve handled?
- What specific IT services do you offer for small businesses?
- How do you ensure the security of our data and information?
- What is your average response time for resolving IT issues?
- What is your pricing structure? Are there hidden costs?
- How well can your services accommodate our business growth?
- How do you communicate updates and issues with clients?
- How do you handle the transition to your services and onboarding?
- Will we retain ownership of our data and systems?
- Why did you use this technology to solve these problems?
- How did it help your customer save time and cost?
- What is the best technology practice in this industry?
Don’t Forget to Check for Certifications
Companies who educate their employees are good outsourcing IT partners.
Interestingly enough, companies get different certificates to illustrate their expertise and attract clients this way, by presenting themselves as leaders in their field. Certification is never a bad sign, but not all companies focus on this. It is a nice extra feature that can help you weigh in.
For software development, look for:
Capability Maturity Model Integration (CMMI)
Firstly, Capability Maturity Model Integration is a recognized framework that assesses and improves the process maturity and quality of software development. Companies with CMMI certification demonstrate their commitment to delivering high-quality software through well-defined processes and continuous improvement.
Microsoft Certified Solutions Developer (MCSD)
Secondly, the MCSD certification validates expertise in designing, building, and deploying software applications using Microsoft technologies. Companies with MCSD certification are well-versed in creating innovative and efficient software solutions tailored to specific business needs.
Certified Information Security Manager (CISM)
Then, CISM certification focuses on information security management. For software development, CISM businesses can ensure that the software being developed adheres to security best practices and safeguards sensitive data from potential threats and vulnerabilities.
For IT help desk and networking, look for:
Microsoft Certified IT Professional (MCITP)
Also, we have MCITP certification that validates skills in designing, implementing, and managing Microsoft technologies. IT experts with MCITP certification are proficient in managing networks, servers, and troubleshooting various IT issues.
CompTIA Network+
Moreover, CompTIA Network+ certification is a foundational credential for networking professionals. It covers essential networking concepts, protocols, and troubleshooting skills, ensuring that IT help desk and networking professionals can effectively manage and maintain network infrastructure.
Cisco Certified Network Associate (CCNA)
CCNA certification is highly regarded in the networking industry. It signifies expertise in Cisco networking technologies and is a valuable qualification for IT experts responsible for configuring, managing, and troubleshooting network devices.
VMWare Certified Technical Associate – Network Virtualization (VCTA-NV)
Next, we have the VCTA-NV certification that focuses on network virtualization and is particularly relevant in modern IT environments where virtualization plays a critical role. Certified businesses or individuals possess skills in designing, implementing, and managing virtualized network environments.
Always Look for Case Studies
Lastly, the best illustration of which company you should work with when you outsource IT as a small business is to ask for case studies.
Did they work with companies of similar size? Did they handle projects similar to yours? Generally, the companies will be more than happy to share their cases with you and display their knowledge through concrete work.
Keep in mind that they might not be able to share all of the details due to data confidentiality and agreements with the client. However, some key takeaways and processes they used is something you can ask any outsourcing company.
Final Words
Outsourcing IT as a small business is never easy. Stick with it and you will reduce costs and let someone else maintain what is usually an expensive team. Feel free to contact morph if you need any help with outsourcing.
