Report: Outsourcing IT Department has “Significant Productivity Benefits”

outsourcing it supportThe decision to outsource your IT department or hire an IT team independently is an important decision, even if it may not seem so at first. Although your business could probably side with either choice for now, consider where your business will be 5 years down the road. In the long run, outsourcing its IT department has proven to be the smart choice for businesses.

A recent study titled “The Productivity Benefits of IT Outsourcing” written by Christopher R. Knittel and Victor Stango for Progress Software Corporation focused on the pros and cons of IT outsourcing. In an impartial study based on the cost factors and productivity levels, the two researchers summed up their findings by saying that in the end, IT outsourcing certainly beneficial:

Our main empirical finding is that IT outsourcing has significant productivity benefits–benefits that change in character over the sample period. At the outset, outsourcing is not much more productive than CU-developed computerized IT. But by the end of the sample, outsourcing either via a VOL or VIH system is much more productive than CU-developed IT.

The study focused on the productivity levels of credit unions as an example, but the benefits of outsourcing an IT department remain constant in every industry. Such benefits of outsourcing a business’ IT department include:

  • Cost Savings
  • Increased Efficiency, Attention on Core Business Operations
  • Risk Management
  • Flexible Plans
  • Reliable Counseling

The most important aspect of outsourcing an IT department is that it gives your business more time to do what its best at. Your business wasn’t designed with the end goal of dealing with IT issues, and therefore your business is probably not efficient in dealing with such issues. Outsourcing your IT department lets your business get back to what it does best, whether that’s serving clients, manufacturing products, or designing services. Leave the IT issues to experts who can fix them with ease, ultimately saving your business time and money.

If you’re interested in outsourcing your IT department, contact us.

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