When you outsource your IT services, you basically hire an external team or service providers to manage the internal IT functions of the business. These functions may involve technical support, cybersecurity, data storage, software development, hosting, data management, and encryption services. As per the data provided by Deloitte’s Global outsourcing survey report, more than 52% of executives prefer outsourcing their business functions.

Of these participants, 76% claimed that they have outsourced their IT functions which are being managed via third-party models. These third-party models enhance the IT processes with improved data insights, better risk visibility, anticipating shifts in demand, and integration of artificial intelligence. Some main reasons for outsourcing are cost reduction, better convenience, and ease of business operations. In this article, we will delve into the benefits of outsourcing IT services.

Cost Savings

By outsourcing IT services, your SME can save significant capital costs. This is made possible by shifting fixed costs into variable costs. Once the functions are outsourced, you won’t have to invest in costly hardware, software, or infrastructure. By saving large expenditures, your business can pump larger capital into the revenue-generating streams. IT-managed service providers like FunctionEight provide affordable services that are a fraction of the cost of hiring an in-house team.

Salary isn’t the only expenditure you bear when you hire a full-time employee. In fact, you’re also responsible for providing benefits like health insurance, retirement, fringe benefits, and vacations. Another factor that may give you an economic advantage is the difference in the currency’s value. If you outsource your IT functions to a service based in a less-valued currency country, you can get the work done at a much lower cost.

Access to Cutting-Edge Technology

Outsourcing your SME’s IT services provides access to a team of skilled professionals with specialized knowledge and expertise. IT outsourcing services often utilize advanced tools and state-of-the-art technology to carry out tasks, and their experience working with diverse businesses over the years is unmatched. This translates into improved quality of IT services and increased productivity for your company.

Additionally, they can troubleshoot any issues with your company’s IT infrastructure as they possess extensive knowledge of the best practices in the IT industry. FunctionEight is a prime example of such a service provider that can have a positive impact on all levels of your business due to their proficiency in IT policies, processes, and procedures.

Minimizes Risk

Outsourcing your SME’s IT processes can minimize the risk of errors or mistakes resulting from a lack of expertise among new staff. IT outsourcing providers are professionals who adhere to industry standards and best practices, ensuring complete protection against data breaches, cyber-attacks, and other online security threats.

They possess knowledge of compliance and regulatory requirements and can help keep your SME up to date with changing regulations and prevent potential legal issues. Additionally, IT-managed service providers like FunctionEight can help organizations develop and implement disaster recovery and business continuity plans, reducing the risk of data loss, system downtime, and other disruptions.

Focus on Core Business

Outsourcing IT services enables SMEs to concentrate on their core business activities without having to worry about managing IT infrastructure and support services. These additional services are not only costly but can also impact the growth of the business in the long run.

By freeing up valuable resources and time, outsourcing enables you to accomplish more in less time. This enhances your SME’s competitiveness within the industry, reducing overall operational costs and improving turnaround times.

Scalability and Flexibility

Outsourcing providers can offer flexible services that can be scaled up or down as per your requirements. You won’t have to worry about hiring employees, training them, and being bound by the 40 hours per week. You will only pay for the work and services you receive.

You can scale up your business more quickly with access to a larger talent pool and resources. Outsourcing your daily IT operations allows the management to focus on other aspects of the business that may benefit the SME in the long run. Constant access to on-demand services and compatible business solutions ensures scalability.

Improved Network Security

Online data security is one of the most important aspects of IT outsourcing services. Particularly SMEs, due to their weak IT infrastructure and inexperienced staff, are highly susceptible to cyberattacks such as phishing and hacking. By outsourcing IT services to a professional provider, SMEs can enhance their data security and minimize the risk of cyber threats.

These experts can help integrate a dependable firewall security solution in your IT network to ensure maximum security and prevent theft or damage to your company’s data. IT outsourcing providers implement access control mechanisms such as authentication, authorization, and encryption to ensure that only authorized users can access the network. Additionally, they can monitor the network and instantly alert the IT teams in case of any suspicious or unusual activity.

Enhances Business Efficiency

Managing the core IT tasks and the additional services may cost your SME more labor and time. You may waste your valuable time instead of focusing on the core functions of your business. Hiring experienced professionals can help SMEs experience streamlined IT functions, allowing them to scale upon their technological capabilities and meet business objectives.

If you intend to upgrade your internal system or transition to a new program, there is no need to assign the task to your internal team. Instead, IT outsourcing companies can handle the implementation and training of the new program. They can also assist your SME in preventing data breaches and other security threats by ensuring that your network complies with the appropriate regulations and standards. These standards may include the following:

  • PCI-DSS- Payment Card Industry Data Security Standard
  • GDPR- General Data Protection Regulation
  • HIPAA- Health Insurance Portability and Accountability Act of 1996


Outsourcing the IT functions of your SME can be beneficial. However, it is imperative that you choose an outsourcing company that is reliable and reputable. With over 20 years of experience providing for businesses’ IT needs, FunctionEight is known for facilitating SMEs to keep their IT-related downtime to a minimum. Get in touch today to learn more about how outsourcing IT functions can help your SME improve its productivity and efficiency.

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