Outsourcing your IT vs Hiring another IT Manager: which is best?

Today’s society is dominated by the online marketplace and most of us are guilty of utilising comparison websites when purchasing services. However when it comes to business are we really saving money by scouring the web for the lowest price and by refusing to replace out of date hardware?

In the UK alone, downtime costs SMBs £2bn each year in lost revenue. To put that into context that is £138,000 per hour that UK small and medium businesses are losing.

The true cost of downtime

The number one reason for downtime is hardware failure and number two is human error. The concerning fact about this statistic is that the cost of hardware has fallen substantially over the last ten years, yet during this same period staff salaries and cost of employment have risen drastically. This is where business owners need to look at IT as a commercial investment and utilise the Cost versus Value modelling tool.

In most SMBs, the IT department is the first line of defence against spending. Where possible they patch up damaged hardware and spend more time checking that they are getting the best possible price when it comes to purchasing new IT services or equipment. 

The question is: do your IT staff understand the commercial value of their time as an individual and the cost of downtime to your organisation? Is it really worth them spending two hours to save £5; does fixing an old PC really add value to your business? If one machine in your organisation is down for five hours then the cost to your business is often much more than the cost of a new machine.

The rise in Outsourced IT

The increase in outsourced IT has been driven by the needs of the business to have a partner who understands the commercial and technical element of your IT infrastructure. In the not-too-distant future having an IT supplier will be a thing of the past: with technology being at the forefront of the business, it is important that you choose the right partner to deliver your business needs.

IT Managers need Outsourced IT too

This is not to say that by outsourcing IT you have to make the role of the IT Manager redundant – it is important to understand there can be a need for both in order to maximise time and resource. The IT Manager can work with an outsourced technology partner to develop strategy and to deliver commercial improvements for your business thus increasing productivity and efficiency.

The number one reason for not outsourcing IT is that companies believe they cannot afford to do so. With the rapid increase in Cyber Crime and with the changes in The Data Protection Regulations - can you really afford not to?

A technology partner should be an investment and a way to improve the overall function of technology within your business, improving the efficiency of both the infrastructure and your employees. The decision you make on which partner you choose will define whether this is a cost to your business or a value.

If you would like any more information on Outsourced IT or the new Data Protection laws (GDPR), please contact AAG on 0114 303 0249.