Outsourcing IT as a Cost Saving Method

Every business owner, large or small, wants to increase productivity and reduce expenses. It is for this reason business executives are looking to implement strategies to upscale and lower costs. As we are all stepping out of a dreadful pandemic, more than ever, businesses want to cut down expenses and should consider outsourcing their IT department as an option.

Some of these measures typically involve making use of free tools online, buying used equipment, slicing down monthly subscriptions, and so on. Managing these expenses can help propel a company through even the worst downturns. However, the problem of mounting expenses persists.

If you are looking to maximize profits for your business, have you considered outsourcing your IT to professionals? Most business owners who have heard about the term are not open to the idea.

The rationale behind this is that no one likes the idea of ‘losing creative control’ on one aspect of the business. But is that really the case?

Outsourcing is new normal in a world of virtual assistants, freelancers, and remote workers. According to Deloitte, 64% of businesses consider cost-saving as a huge factor in making them outsource. It is safe to assume that the quicker you start outsourcing your business IT, the more efficient you become in saving costs.

If you are wondering how outsourcing IT can improve your profits, we have you covered.

What is Outsourcing?

It is always important to always start from the beginning, to what outsourcing really means. This is the process of handing over tasks and responsibilities to vendors or outside contractors. These tasks can be handled on the business premises or remotely. And not just by anybody.

When it comes to outsourcing, professionals are in charge of the assigned tasks. So, in the case of outsourcing IT, experts in the field will handle it.

Why Should Businesses Outsource IT?

If you have not outsourced any part of your operations before, you may be wondering how it is relevant. Why not hire full-time employees to handle it in-house?

Outsourcing your IT allows you to gain access to premium services at a low cost. This is a cost-saving method that is regularly used in a world that is now digitized. Most IT services do not fit into the profile of employees. You would need to outsource to a professional that will handle the task efficiently.

What are those areas you will save costs on when you outsource your IT?

Interview Costs

Outsourcing your IT to a professional contractor saves you a lot of funds from interview expenses. Most business execs are not paying attention to this.

According to Glassdoor, the average company in the US spends $4,000 to recruit and hire a single employee with around 42 days to fill up that position. Imagine hiring more than one employee to work in your IT department!

Again, you have to consider the cost of posting job ads on the internet and on local newspapers. You can clearly see that you may be spending too much on getting a new employee for your business.

These funds could be channeled into strategies that might improve your bottom line.

Training Costs

When you recruit someone new, you would need to take them through the onboarding process. This often means that you will train them to get more familiar with the task at hand. This involves funds, especially if you would involve an outside tutor to train your new employee.

This will definitely take a chunk of your budget for that month.

You also have to consider that during the period of the training session, the new hire will be unproductive. This means you are losing on both sides.

Outsourcing your IT saves you from this financial impediment.

Salaries and Taxes

When you outsource your IT, you reduce costs from salaries, taxes, and other benefit packages including healthcare insurance and paid leave.

Hiring a new employee comes with a lot of expenses, some of which may be too much to handle at this moment.

Outsourcing this aspect for a period of time saves you from paying these expenses every month.

Technological Costs

IT is a crucial department in any company. It is not out of place to see execs approving funds to buy new equipment for their IT department to work with.

Imagine not having to spend money frequently for these types of expenses. This is possible through contract IT professionals.

They have been in the business for a long time. Thus, they already have the best tools for the job. You do not need to spend much to keep your IT running.


Your full-time IT employees may not be as productive as an experienced contractor. Unproductive workers are bound to experience more turnovers which threaten the growth of your business.

You need to outsource to a competent contractor to handle your IT. This will go a long way in mitigating risks while fostering efficiency.

Outsourcing your IT is one of the best cost-effective decisions you can take for your business. When you review these benefits, you can easily see why.

Reach out to us to discuss further how outsourcing your IT department can be used as a cost saving measure.

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Marc Freedman

To help you achieve your company's financial growth goals, Marc serves as our Chief Cost Advisor, providing advice to client management teams. He is highly regarded as an expert in his field, and he frequently collaborates with and contributes to other spend consultants to develop and implement cutting-edge strategies for their respective clients.

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