Financial Benefits Of Outsourcing IT Support

Every organization has a different staff composition. With information technology (IT) support structures, some companies have dedicated IT staff in their team, while some companies prefer using outsourced services.

IT support outsourcing refers to the use of a third-party service to attend to your business’s or organization’s IT needs. They typically work on a contractual basis. 

Outsourcing Today And Why Businesses Avail Of Them

Outsourcing is getting more popular because the costs of outsourcing are usually more manageable compared to having fixed IT staff employed at a company.

Another factor that affects or determines whether or not a business needs to outsource is its size. Bigger businesses can certainly afford to have dedicated IT staff who are paid considerably higher compared to other employees because IT is in demand. 

However, smaller firms may not have the financial capacity to have dedicated IT staff on their team. To make matters more interesting, if you’re a startup and you’re in a phase of acceleration, your need for IT support staff may double or triple, thus, the need for virtual IT support to meet an organization’s various IT needs.

If you’re aiming for a fast and functional IT system, you may consider hiring a managed IT services company in Cranston RI or wherever your business is located.

IT outsourcing. Abbreviation outsourcing

Practical Financial Advantages of Outsourced IT Support

Are you curious about the myriad of financial benefits of outsourcing your organization’s IT support to a third-party?  Continue reading to learn more. 

  • Save On Personnel Costs 

Outsourcing IT support effectively turns a fixed cost into a variable cost. Variable costs are more manageable compared to fixed costs. This is because if you have internal IT support staff on your payroll, it means that they’re a fixed cost. If you opt to use third party IT Support services, on the one hand, it means that you get to save on the salaries, bonuses, benefits, overtime pay, and paid leave days. 

Also, while there’s nothing wrong with having employees on your payroll, it’s hard to account for productivity in terms of employee salary. This makes fixed costs hard to manage. So, you can opt to use outsourcing because you only use or pay for services when you need them. In addition, you can get managed IT services at a lower price. 

  • Save On Recruitment And Retainment Costs 

The processes of employee recruitment and retainment are often costly endeavors. While company policies differ in terms of their attitude towards outsourcing, it’s quite clear that using outsourcing helps you to avoid recruitment and retainment costs.

Now, recruiting employees is not bad at all. But, as far as getting financial benefits for your business is concerned, outsourcing saves you the money that would otherwise be used in recruiting and keeping employees. Costs associated with retention, such as employee benefits, fringe benefits, and paid sick leave days, are things you won’t have to deal with if you use outsourcing.

  • Regulatory Costs Are Covered 

Some laws require organizations to follow different rules and guidelines. The reason for this is to uphold certain IT security and consumer protection rights. These laws vary between cities and states. 

Most third-party IT service providers cover regulatory costs associated with administering their services. So, that means that’s one less expenditure item to deal with in your income statement. Contractors are obliged to adhere to certain regulatory laws for compliance

Compliance can be a very demanding process and often involves a lot of complicated procedures to attain compliance status, e.g., tax compliance costs will be the IT support’s responsibility, not yours. Such regulatory costs will often be included in IT support service company packages already. This allows you to save more money, thereby improving your bottom line.  

  • Save On IT Equipment

IT may not be the core of a business. For example., your business deals with medical patients, so IT may not be a core focus area. Therefore, you’d be better off outsourcing IT support services from an expert.

They’ll supply their own equipment so you won’t have to worry about acquiring equipment. It means that you won’t have to buy computers and other hardware or software. It’s their responsibility, not yours. Mind you, equipment acquisition tends to be quite costly. Therefore, because outsourced IT support provides equipment at their own cost, you save big as a consequence.

  • You Can Divert Savings To Other Aspects Of Business

Outsourced IT support services are usually relatively more affordable compared to the alternatives. The cost savings that you get can be reinvested into other areas of your business. Outsourcing IT services allows you to bolster technologies, machines, and systems that constitute your core business activities.

Perhaps, these system updates and refinements will improve operational efficiency, which will ultimately improve your business’s bottom line. Therefore, outsourcing IT frees up your financial resources to enable you to pursue development and investment opportunities to improve your business. 

Also, some cost savings will be gained through efficient service delivery from contractors. If your external IT support is good at doing their job to the extent that call backs are non-existent, you’ll save money in the long run.  They’ll ensure that your IT equipment works as it should to avoid call backs because their reputation will be on the line. 



Outsourcing is an excellent way of saving costs in the short and long run. Usually, services that are outsourced or specialists have a reputation to maintain, and that works to your advantage. So, every dollar that you spend on an outsourced service will most likely bring great value to your business, and it’ll save you money, too.