Addressing Outsourcing Myths
The IT Services industry is booming and showing no signs of slowing down. It’s one of the fastest growing segments within the overarching IT industry, and in 2020 spending is expected to reach a record $1.1 trillion. To put this figure into perspective, it is equal to the combined GDPs of Thailand and Poland. The numbers aren’t forecast to drop anytime soon, either, with the industry expected to grow by another $110 billion in 2021. This forecast was made pre Covid-19 and despite the fact that exact numbers may change, the rapid growth of our industry is predicted to continue.
Across industries and sectors, outsourcing has been widely adopted for two core reasons. One is as a cost saver, it is entirely possible that another business can use their quantity of scale to provide something for cheaper than you can deliver. The other is to allow you to focus on core business goals and planning.
As demonstrated by the pie chart above, IT services are continuing to grow within the outsourcing sector and it is expected to build upon the strong growth seen to date. Despite its obvious ability to aid business growth and service delivery, many are put off by pre-conceptual outsourcing myths.
The Loch Ness Monster, Bigfoot, the earth being flat – people often believe things that aren’t true. In a similar vein, many organisations believe myths around outsourcing that make them question whether they should try it – Will I lose control of my business? Will it be viewed as a cost cutting option? Will it result in poor service, and will it affect our security and privacy?
We’ve debunked the aforementioned myths below to give some more clarity.
Outsourcing Myths: Will I lose control?
Outsourcing does not mean relinquishing control of your MSP or any core functions, in fact it actually brings a number of positives to your business. It’s there to assist you – not take control, think of it as an extra pair of hands. It can help enhance specific, in-demand functions of your business and free up the time you need to push your MSP forward and bring the most value.
For many MSP owners, the thought of losing control is enough to immediately cease any notion of the concept. However, it couldn’t be further from the truth. Outsourcing to a Master MSP only works with small segments of your business. Of course, if required you can gain assistance in other areas, but the fundamental departments remain in your control, and for the area you outsource you can remain as connected as you like.
By allowing someone to assist you with business as usual items such as Helpdesk, you won’t be losing anything, in fact you will be gaining something money can’t buy – time. The time that you gain will allow you to put focus “on” your business rather than “in” it. Time and effort can be targeted on the areas that bring most value to your company.
Outsourcing Myths: Will outsourcing diminish our value and lower customer experience?
So what is one of the biggest advantages of outsourcing freeing up more of your time? It means you have the opportunity to nurture and build relationships – just imagine having 50% more time to focus on your client.
Here’s an example:
In a typical MSP, providing a good helpdesk is key to success, but the time and oversight required from management can often lead to Account Management neglect. If you didn’t have to focus on helpdesk anymore, what could you do instead? Take that VIP customer for lunch? Provide vCIO services?
Human instinct dictates that we should be concerned and diligent in considering the decisions we make for our business and outsourcing can, at times, seem particularly risky from a client satisfaction point of view. Looking at things in a different way can help, and actually enhance the value potential and existing clients hold in your business, consider re-positioning your value proposition when selling to clients:
“We are specialists in this area and our additional (outsourced) function allows us to deliver better value for money then hiring internally, a cost saving transferred directly to you.” Is something an MSP Sales Team could lead with, making the decision to outsource positive for the client.
Outsourcing Myths: Will outsourcing compromise my security?
Security is paramount in the 21st century and will no doubt continue to grow in importance throughout the next decade. When it comes to outsourcing, many may wonder if using an outsourced provider will compromise security. The simple answer is no it won’t, providing you are using the right partner who ticks all the boxes.
In order to ensure security remains at levels you would expect, you must ensure you have the right partner. Questions you can focus on could include what toolset do they use? What certifications do they hold as a business? Developing a check list to go through and compare service providers is always a good idea and helps you to ensure you are comparing ‘apples with apples’.
Remember, security runs through the veins of a business’ culture and not just through the tooling, so spending time getting to know the business, the team and the policies before making a decision is also advisory.
Outsourcing Myths: Is outsourcing just a cost cutting exercise?
Cost cutting might be one of the reasons an organisation wants to engage a third party, I mean who doesn’t want to save money? However, this should not be the primary driver for using an outsourcing vendor. Cost cutting is not always economical and can send the wrong message out to employees within a business.
If cost cutting is the only reason you are contemplating an outsourced vendor, then make sure you familiarise yourself with the other benefits they can bring to the table. A relationship built solely on cost cutting can be detrimental to both parties, so instead ensure you are focusing on value for that cost and the benefits that your clientele will experience.