Why Benefits & Advantages of Outsourcing Information Technology IT

Information Technology (IT) is a critical part of the business process that can require technical competence beyond the scope of the current management. In this case, a third party should manage the IT function.

Here are some of the reasons why outsourcing is a better choice for managing the IT department, rather than maintaining IT internally:

	Advantages
		IT costs become more visible as all billable hours must be accounted for
		Outsourced services are utilized as needed, and organizations pay only for what services are actually used
		An outsourced IT department can reduce costs by utilizing its extensive knowledge base of various IT specialists, as opposed to an organization maintaining a comprehensive in-house staff
	Outsourcing Benefits
		Outsourced companies make performance reports and measurements available to their clients
		Communications between business functions improve at all levels and ensure that IT resources are not being misused
		Outsourced companies can provide 24x7 support at a fraction of the cost
		Outsource staff tend to drive planning and budgeting improvements
		Service Level Agreements (SLAs) can be established
	Staffing Benefits
		Staffing levels can be adapted quickly to client requirements, thereby avoiding gaps due to attrition, business growth or economic downturns
		IT consultants are fully trained on the latest technologies
		Retention of technically qualified in-house personnel is more difficult when external job opportunities are rapidly changing
		Continuous IT support coverage without having to rely on only one or two key people
	Advantages Outsourcing
		Outsourced services use established standards for equipment and software requirements, saving time and money
		Outsourced services use approved lists of reliable vendors, which improves the quality of goods and services received
		Client management can concentrate on core competencies and revenue generating activities, while leaving technology management to IT professionals
		Management of non-essential core functions is transferred to the outsourcer