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Benefits of Outsourcing IT

Learn how outsourcing your IT services can help save money, increase productivity and stay ahead of the curve.

Technology is constantly evolving and changing how businesses operate. Companies that want to stay competitive need to adapt quickly. However, many small businesses don’t have the necessary IT bandwidth, which is why outsourcing is a great option. Here’s what you need to know.

What is IT Outsourcing?

IT outsourcing is the practice of hiring a third party to manage specific IT functions. There are many reasons why a company chooses to outsource their IT services. For example, it helps save money, creates a more efficient workflow, aids in scaling a business and can provide expertise not available in-house. There are different ways your business can outsource various IT functions and reap its benefits.

Types of Outsourcing

The array of IT outsourcing options available around the world allow you to hire your IT services from anywhere:


Offshore outsourcing involves using a third-party company in a foreign country. This option typically offers lower costs and tax savings.

Near Shore

This process involves working with a company in a country with a connecting border, which makes communications easier.


This involves hiring a third-party company in the same country for easier collaboration.

Health Insurance Portability and Accountability Act (HIPAA)

This federal law requires health organizations to protect patient information and follow best practices in three areas—administrative, physical security and technical security.

Cloud Computing

Companies can also hire an external service provider specifically for cloud services, such as Infrastructure as a Service (IaaS), to help access data and applications from virtually anywhere.

Managed Services

This involves hiring a company to provide network management services, like monitoring and reporting.

Most Commonly Outsourced IT Functions

There are a number of IT services you can outsource:


  • Network installation, management and security
  • Data backup and recovery
  • Email and authentication
  • Cloud computing
  • Backup management
  • Technology rollouts and infrastructure upgrades
  • New user setup and training
Sitting around the table team discussion outsourcing information technology

Top Benefits of Outsourcing IT

There are many reasons companies choose to outsource their IT service, including:

Reduced IT Costs

Installing and maintaining an in-house IT infrastructure is expensive. Outsourcing specific IT services allows you to pay only for what you need. Hiring an outside provider also saves you money on hiring and training new IT staff.

Efficiency and Expertise

Dealing with IT issues interferes with productivity. When you outsource a portion or all of your IT needs to a third-party company, professionals handle technology nuances, allowing your staff to focus on business priorities instead of monotonous break fixes and user requests.

Security and Compliance

In order to safeguard your business and protect your data from malicious cyber-attacks, security measures need to be kept up-to-date. By hiring an outside provider familiar with compliance requirements and network security, you’ll have assurance your company is minimizing the risks associated with handling data, credit card numbers and other sensitive information. Security as a Service (SECaaS) uses leading security technology to create a custom solution protecting your information. In addition, Identity as a Service (IDaaS) ensures secure access to your critical business applications regardless of where your employees are working.

Scale Faster

Technology changes rapidly. Hiring professionals who understand and can implement new technologies quickly helps companies stay competitive. Training your in-house IT staff to do this takes away valuable time and money from other business projects.

Business Continuity and Disaster Recovery

Outsourcing your IT infrastructure protects your IT data and minimizes loss if an emergency event, like a natural disaster or cyber-attack, ever occurs. Cloud services like Backup as Service (BaaS), SD-WAN and Disaster Recovery as a Service (DRaaS) help guarantee your data is automatically saved in the cloud so you can access it from virtually anywhere, even if your on-site location is unavailable.

Issues and Challenges With Outsourcing IT

Depending on the outsourcing model you choose, there are a few challenges that come with it:


  • Time Difference: Depending on where your service provider is located, you could experience delays in communications due to time differences. This is often a challenge with offshoring.
  • Language Barriers: If you choose to outsource your IT services with a company based in another country, you might experience language barriers, resulting in miscommunication.
  • Support Guarantees: It’s important to choose a provider that offers support when you need it. Providers with different work styles may be difficult to manage.
  • Travel Time: If you need to travel to meet with your service provider, remember the expenses and time required add up.

Outsourcing IT With Cox Business

By outsourcing a portion or all of your IT services, you can focus on what matters—growing your business. While it feels overwhelming to handover a critical aspect of your organization to a third-party company, Cox Business helps ease the transition. We offer a range of business IT and cloud solutions to help safeguard your business and maintain productivity.

What can Cox Business Cloud Solutions do for your business?

We provide reliable, innovative and secure services to move your business to the next level of IT productivity and profitability.

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