Article

Drive a competitive advantage for your business services firm through IT outsourcing

Sep 10, 2022

Key takeaways

IT outsourcing can be the key to creating a dynamic environment where talented people do their best work.

The bench strength and breadth of services that outsourcing solutions provide are often beyond what many business services companies may have in-house.

IT Outsourcing allows firms to scale to their needs, giving them improved flexibility and resources when they need them.

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Managed IT services Business services Managed services Managed technology services

How to drive a competitive advantage for your business services firm through IT outsourcing

It’s about finding the right people. The war for talent, the tight labor market, the future of work—all of it comes down to attracting, developing, and retaining high-quality professionals in a world where it seems like everybody is leaving one job for another.

For many organizations, the IT department is one of the toughest areas in which to maintain reliable support. But for business services companies like workforce solutions firms, environmental and facility service companies, and marketing firms, IT outsourcing can be the key to creating a dynamic environment where talented people do their best work. Here are just a few of the ways in which outsourcing can benefit business service companies:

Improved scalability and coverage

The outsourcing model is highly flexible and adaptable. If more IT resources are needed at a busy time of year, it is relatively easy to add more professionals. If a project falls through, it takes little effort to scale back down. Such quick changes are not possible with fixed in-house staff.

The bench strength and breadth of services that many outsourcing solutions provide are often beyond what your organization may currently have in-house. For example, it may be challenging for a firm to provide 24/7 help desk coverage. But an outsourcing provider or managed service provider can. Or perhaps an organization needs to update its enterprise resource planning system, which can be a massive undertaking. The company can draw from a large pool of outsourced professionals to handle the job in such situations.

Outsourcing allows firms to scale to their needs, giving them improved flexibility and resources when they need them.

Improved efficiency and productivity

Business service companies don’t always have the resources to focus on IT innovations or best-in-class technology solutions that can improve efficiency and productivity. Outsourcing such functions allows organizations to eliminate the time and stress that comes with managing duties outside of their core mission.

For example, in today’s environment companies face serious challenges in employee retention within their IT function. Perhaps the organization cannot offer enough technical challenges to keep the IT staff interested. Or conversely, the company’s demands overwhelm the few IT people who struggle to find long-term careers in the organization. Or an IT consulting firm will simply swoop in and hire them away. Attempting to keep IT support in-house can cause more retention challenges than it solves. IT outsourcing can provide significant advantages to organizations, addressing resource shortages and skill gaps, and keeping pace with technology advancements.

Business services companies become more efficient and productive when they focus on their business—and people are their business. Outsourcing allows organizations to allocate their limited resources to people and functions that directly impact their bottom line.

Access to enhanced capabilities

Automation and data analytics are creating competitive advantages in the business services sector. But many firms do not have the resources to tackle innovative solutions, even if the solutions could improve the company’s efficiency.

Outsourcing providers frequently offer cutting-edge technologies and access to the most advanced tools. The latest developments in digital services, data analytics, and analytics platforms are often available through outsourcing providers. In this way, firms can gain access to world-class capabilities that would otherwise be beyond their reach.

Enhanced cybersecurity

When a firm needs help from an IT security expert on protection from increased cybersecurity threats, it can partner with a managed security service provider (MSSP). But potential improvements to a firm’s cybersecurity go beyond just bringing in extra help.

A good MSSP will create a robust security platform that relies on the latest protections. In this way, outsourcing can minimize the chances that a security breach or data disaster will happen. And MSSPs are typically better suited to keeping a company’s technology up to date.

The MSSP will run tests, verify backups and undertake the dozens of measures that are necessary to establish strong cybersecurity protocols. Many business service firms don’t have the depth of resources to accomplish this. Outsourcing can help to improve an organization’s overall security posture. Starting with a security assessment and gap analysis to identify vulnerabilities, an outsourcing provider can start to fill gaps, protect the perimeter and establish appropriate security protocols to maintain business continuity.

Access to industry expertise

Business service firms understand that clients hire them for their expertise in a specific area. Similarly, these firms can benefit by tapping into the knowledge base of their outsourcing provider. For example, outsourced professionals in IT are likely to know all the latest high-tech breakthroughs, as well as offer solutions that they have developed with other clients.

Outsourcing is a powerful way for a firm to expand its team. The collective knowledge and expertise that outsourcing provides can help companies make more effective business decisions.

Summary

Outsourcing can be an enormous benefit to business service companies. Working with an outsourcing provider can help firms improve efficiency and productivity and increase their flexibility and coverage capabilities. Firms can gain greater access to both industry expertise and high-tech innovations, as well as strengthen their cybersecurity efforts. Outsourcing also allows business service firms to keep their in-house staff focused. And when this happens, the entire organization benefits.

RSM contributors

  • Drew Faries
    Principal
  • Chris Philpott
    Director