11 Jan 2024

The Cost Benefits of IT Outsourcing for your Business

In today's competitive landscape, UK businesses are increasingly turning to IT outsourcing as a strategic move to reduce costs and enhance operational efficiency. According to Deloitte’s Global Outsourcing Survey 2022, companies can save up to <b>30%</b> on operational costs by outsourcing various functions, including IT support. This savings comes from lower labor costs, increased efficiency, and access to specialized skills and technology. For instance, the average cost of maintaining an in-house IT team can be substantial. Businesses with <b>1-10 employees</b> spend approximately <b>£23 per hour</b> on IT support, while larger firms with over <b>100 employees</b> may incur costs of around <b>£32 per hour</b> <br /><br /> In contrast, outsourced IT services typically offer a fixed monthly fee that covers a range of services—from network management to cybersecurity—often amounting to less than the annual salary of a single in-house IT professional. Moreover, outsourcing eliminates hidden costs associated with hiring full-time staff, such as health benefits and ongoing training. For example, a mid-sized company with an in-house IT team might spend about <b>£200,000 annually</b> on salaries and benefits. By switching to an outsourced model costing around <b>£60,000 per year</b>, businesses not only save money but also gain access to a broader range of expertise and advanced technologies. <br /><br /> In summary, outsourcing IT support can significantly reduce costs while providing businesses with the flexibility and scalability needed to thrive in a rapidly changing environment. Companies should consider this approach as a viable option for enhancing their operational efficiency and overall performance. <br /><br /> Learn More about how Bitshift can effectively handle your IT operations while reducing your operational cost substantially