Top 15 Outsourced IT Services For Small Business That You Need To Know

In today’s digital era, small businesses are increasingly leveraging outsourced IT services to gain a competitive edge, streamline operations, and drive innovation. According to a report from Gartner, Gartner Forecasts Worldwide IT Spending to Grow 8% in 2024, highlighting the growing reliance of businesses on these services.

In this article, we provide a comprehensive look at the top 15 IT services that small businesses can outsource, from mobile app development to artificial intelligence and machine learning solutions. Outsourcing these services can help businesses access high-quality IT talent, reduce costs, and focus on their core operations. Whether you’re a startup looking to build a robust IT infrastructure or a growing business seeking to upgrade your IT capabilities, knowing what to outsource can be a game-changer.

Don’t hesitate! Dive in now to discover the outsourced IT services that can propel your business to new heights.

Understanding IT Outsourcing

IT outsourcing refers to the practice of hiring external service providers to handle certain information technology functions. These functions can range from infrastructure and software development to service management and data center operations.

TLDR about IT Outsourcing:

• Definition: IT outsourcing is a business strategy that involves delegating certain IT functions or services to third-party companies, known as service providers or vendors. These third-party companies may be located in the same country (onshore), nearby countries (nearshore), or far-off countries (offshore).

• Types of IT Outsourcing: There are several types of IT outsourcing, including cloud-based and managed services, project-based outsourcing, and offshore software development services. The choice of which type to use depends on the specific needs and goals of the business.

• Why it Matters: IT outsourcing can provide businesses with cost-effective access to specialized expertise and high-tech infrastructure without the need for significant capital investment. This can be particularly advantageous for small businesses that may not have the resources to fully support an in-house IT department.

Benefits of IT Services for Small Businesses:

• Cost Savings: Outsourcing can help reduce costs by eliminating the need for investment in infrastructure, hiring full-time staff, and ongoing training.

• Access to Experts: Outsourcing providers usually have a team of experts in various areas of IT. This means that small businesses can have access to top-notch IT expertise that they might not be able to afford otherwise.

• Focus on Core Business: By outsourcing their IT functions, small businesses can focus on their core operations and strategic initiatives, leaving the IT tasks to the experts.

• Improved Efficiency and Competitiveness: IT Services for small businesses can improve their efficiency and competitiveness by adopting new technologies, improving service delivery, and speeding up product development.

• Risk Management: IT outsourcing companies often have strong security measures and disaster recovery plans. Therefore, they can help small businesses manage and mitigate IT risks.

Understanding IT outsourcing and its benefits is the first step towards leveraging this strategy for business growth and success. In the following sections, we’ll delve into specific IT services that small businesses can consider outsourcing.

Top 15 Outsourced IT Services For Small Business

As we navigate through the digital age, the role of IT in business operations has become more critical than ever before. However, maintaining an in-house IT department that can handle every aspect of a business’s IT needs can be challenging, especially for small businesses with limited resources. This is where IT outsourcing comes into play.

By leveraging third-party expertise and resources, businesses can ensure they have access to the latest technologies and the most skilled professionals in the IT industry, all while focusing on their core competencies. Here’s a closer look at the top 15 IT services that small businesses can outsource to stay competitive in today’s dynamic marketplace:

1. Mobile App Development:

Outsourcing mobile app development can be a game-changer for small businesses. It’s a strategic move that provides:

• Access to a team of experts with diverse skills and experience in app development.
• High-quality output without the cumbersome process of hiring and training in-house developers.
• Faster time to market, which is key in the ever-evolving app market.

2. Business Website Development:

Outsourcing website development can greatly benefit small businesses. Professional web development agencies can offer:

• A visually appealing, user-friendly, SEO-optimized, and responsive website.
• Savings on costs and resources by avoiding the need for an in-house web development team.
• More time for the business to focus on its core operations.

3. Dedicated Development Team:

Outsourcing a dedicated development team provides a high level of control and flexibility. This model allows businesses to:

• Extend their team with highly skilled professionals without the hassle of hiring and training new employees.
• Have a team that understands its culture, values, and objectives, enabling the delivery of high-quality, customized solutions.
• Save on costs as businesses only pay for the work done, with no overhead costs associated with maintaining an in-house team.

4. Blockchain Services:

Outsourcing blockchain services can offer a multitude of benefits for small businesses. By working with a specialized provider, businesses can:

• Access expertise in blockchain technology, ensuring effective and secure solutions.
• Save on costs associated with hiring and training an in-house team.
• Increase focus on core business functions while leaving the complex blockchain tasks to experts.

5. IT Consulting:

IT consulting can be a game-changer for businesses looking to optimize their IT operations. By outsourcing IT consulting services, businesses can:

• Gain insights from industry experts to streamline IT processes and improve efficiency.
• Save on costs by avoiding the need for a permanent in-house IT consulting team.
• Stay updated with the latest technologies and IT trends to maintain a competitive edge.

6. Software Solution Development:

Outsourcing software solution development can offer a myriad of benefits for small businesses, including:

• Access to a team of experienced professionals who can deliver customized software solutions.
• Cost savings from not having to maintain an in-house software development team.
• More time to focus on core business functions while the outsourced team handles software development.

7. Cloud Services:

Outsourcing cloud services can greatly benefit businesses. With an outsourced provider, businesses can:

• Utilize the expertise of professionals in managing and optimizing cloud solutions.
• Avoid the costs and complexities associated with maintaining an in-house cloud team.
• Ensure data security and compliance with the help of cloud experts.

8. Cybersecurity Services:

Cybersecurity is paramount in today’s digital world. Outsourcing cybersecurity services offers businesses:

• Access to skilled security professionals who can protect the business against cyber threats.
• Cost savings from avoiding the need for an in-house cybersecurity team.
• Peace of mind knowing that cybersecurity is being handled by experts.

9. Data Analysis:

Data analysis is crucial for strategic decision making. By outsourcing data analysis, businesses can:

• Leverage the expertise of data analysts for accurate and insightful data analysis.
• Save on the costs associated with maintaining a full-time data analysis team.
• Spend more time focusing on core business tasks while data analysis is handled by experts.

10. Customer Support Services:

Customer support is essential for maintaining customer satisfaction. Outsourcing customer support services provides:

• Access to trained customer service professionals who can provide high-quality support to customers.
• Significant cost savings by avoiding the hiring and training of an in-house team.
• More time to focus on core business operations while customer support is managed by experts.

11. IT Infrastructure Management:

Managing IT infrastructure is a complex task. By outsourcing this service, businesses can:

• Gain the help of experts in managing and optimizing IT infrastructure.
• Save on costs and resources associated with maintaining an in-house IT management team.
• Focus more on core business operations knowing that IT infrastructure is managed by professionals.

12. E-commerce Solutions:

Outsourcing e-commerce solutions can be beneficial for small businesses. By doing so, businesses can:

• Access a team of professionals who specialize in developing and managing e-commerce solutions.
• Save on costs associated with hiring and training an in-house team.
• Free up more time to focus on other areas of the business while e-commerce operations are handled by experts.

13. Digital Transformation Services:

Digital transformation involves the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. By outsourcing digital transformation services, businesses can:

• Access a team of experts who can guide the digital transformation journey, ensuring effective and seamless changes.
• Save on costs associated with hiring and training an in-house team for the digital transformation process.
• Focus more on core business functions while the digital transformation tasks are expertly managed.

14. Artificial Intelligence and Machine Learning Solutions:

AI and ML are transforming the way businesses operate. By outsourcing these solutions, businesses can:

• Leverage the knowledge and experience of AI and ML experts.
• Save on costs associated with hiring and training an in-house team.
• Focus more on core business functions while AI and ML tasks are handled by professionals.

15. Managed IT Services:

Managed IT services can help businesses streamline their IT operations. Outsourcing these services can:

• Provide access to a team of IT professionals who can manage all aspects of IT operations.
• Save on costs associated with maintaining an in-house IT team.
• Allow businesses to focus more on their core areas while IT operations are managed by experts.

What Is Outsourcing IT Services?

IT Service Outsourcing refers to the practice of engaging external service providers to efficiently provide IT-enabled solutions for business processes, application services, and infrastructure, with the aim of achieving favorable business outcomes.

What Are The Three Types Of IT Outsourcing?

Various approaches to IT outsourcing exist, categorized into three main types: onshoring, nearshoring, and offshoring.

1. Onshore Outsourcing: In this model, organizations delegate IT services to a service provider within the same country.

2. Offshore Outsourcing: Offshore outsourcing involves partnering with a service provider located in a different country.

3. Nearshore Outsourcing: Nearshore outsourcing entails collaborating with a service provider in a neighboring or nearby country. 

4. Cloud-based Outsourcing: Leveraging cloud computing, organizations can outsource IT functions to service providers delivering services over the internet.

What Are The Benefits Of Outsourcing IT Services?

Key benefits of IT outsourcing encompass scalability, enhanced disaster recovery capabilities, streamlined access to subject matter experts, cost-effectiveness, and the ability to concentrate resources on core business development.

Benefits of IT Outsourcing Service:

• Reduce Costs
• Ensure Flexibility and Agility In The Processes
• Have A Dedicated Team
• Look For Service Quality and Efficiency
• Increase Productivity and Focus On The Core Business
• Security and Accountability
• Access To Global Resources

What Are The Reasons Why Companies Should Use Outsourcing?

1. Acquire Specialized Expertise: Outsourcing enables companies to engage staff with specific expertise, ensuring that tasks are handled by professionals with the requisite skills and knowledge.
2. Swift and Cost-Effective Staffing Solution: The outsourcing process offers a rapid and cost-effective remedy to staffing challenges, allowing organizations to fill skill gaps efficiently without the lengthy process of recruitment.
3. Resource Optimization: By outsourcing certain functions, companies can free up their in-house personnel to concentrate on other essential tasks, optimizing the utilization of their workforce.
4. Efficient Handling of Workload Fluctuations: Outsourcing proves invaluable during seasonal peaks and troughs in workload. Companies can scale their outsourcing efforts to match demand, maintaining operational efficiency.
5. Enhanced Business Continuity: Should the need arise, outsourcing contributes to business continuity. By distributing tasks to external providers, companies can ensure the uninterrupted flow of operations even in challenging circumstances.

How Much Does IT Outsourcing Cost?

The cost of IT outsourcing can vary significantly based on the scope of work, the expertise required, and the pricing model adopted. Two common pricing models include team-based pricing and fixed-cost pricing. Regarding IT outsourcing models and project estimation:

• Dedicated Team Model: A long-term partnership where the outsourcing company provides a dedicated team to work exclusively on your projects. This model is beneficial for large projects with evolving requirements.
• Fixed Price Model: The project scope and timeline are well-defined, and the outsourcing company delivers the project for a fixed price. This model is suitable for small-to-midsize projects with clear specifications.
• Time and Material Model: This model provides the greatest flexibility, as you pay for actual work hours spent on the project. This model is ideal for projects where requirements may change frequently.

Project estimation in outsourcing involves determining the time and resources required for the project. It includes assessing the project size, complexity, and potential risks. Accurate project estimation is crucial for setting realistic deadlines and budgets.

Outsourcing Or In-house? Which One Is Better For You?

Choosing between outsourcing and in-house teams depends on several factors:

• Budget: If budget is tight, outsourcing can be more cost-effective.
• Expertise: Need specific expertise not in your team? Outsourcing may be better.
• Control: Want direct control over staff? In-house could be preferable.
• Scalability: For rapid scaling, outsourcing often provides faster solutions.
• Project Nature: Routine tasks can be outsourced while core functions often stay in-house.