By ProServeIT on July 05, 2022

Outsourcing IT Keeps Costs Down |Transportation Industry Success Story

Every business invests in technology to grow its brand and achieve success. Multiple resources and tools are available for communication and collaboration within your organization. With so many options on the market, it can be overwhelming to choose which tools to use and to find tools that fall within your budget.  

In this blog you will find:

Why is keeping costs down important for your organization?

How can you control your organization's costs?

How a transportation company grew their IT environment!

3 key benefits achieved from outsourcing their IT services

When is it appropriate to outsource to an MS provider?

A salary for a Technical Support Specialist alone can range between $30,000 and $70,000 CAD, depending on their level of expertise and where you’re located. Now think about having to hire two or more people to make sure that you have enough in-house expertise, knowledge, and bandwidth… those costs add up!  

This is the third of a 5-part managed services blog series on how outsourcing IT functions can increase the value per dollar spent on your business. In this blog, we’ll look at how you can save money in your organization and how a transportation company used this strategy to align their technology to their business objectives. 

Have you read? 

Mining Company Success Story: Outsourcing IT Frees up Management Time

Commercial Fleet Success Story: Outsourcing IT Keeps Technology Updated

Why is keeping costs down important for your organization? 

Outsourcing your IT enables your company to enjoy the benefits of a full IT team without the overhead costs and demands on management. You can secure this for a fraction of what an in-house team would require. For example, with an outsourced IT team, you may not need to buy hardware — and the upgrades it periodically demands. You also wouldn’t pay for sick leave, bonuses and other benefits that a full-time in-house team would require. 

An outsourcing company gives your business a ready-to-respond IT team and a secure operation at a lower cost. This lowered cost of operation means you can offer competitive prices to your customers and increase your competitive advantage. 

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How can you control your organization's costs? 

Any successful company or organization knows the value of setting a budget and making prudent financial decisions. Although you presumably spend money on things like marketing and research and development for your company, if there is a way to save money while still getting the same results, you'll probably choose that option.  

Partnering with a Microsoft Provider offers you the IT support and assistance you need, at a fraction of the cost of having to replicate those same services in-house – no salaries, no benefits, just one flat monthly or annual fee. This fixed fee is a shift from capital expenditures with volatility and risk, to an accurately calculated operational expense. The quality of your IT operations will also likely improve. Most managed services (MS) Providers offer proactive management and monitoring of your network and IT environment 24 X 7, which is often not feasible with in-house IT teams. This leads to better cost savings by reducing unexpected costs. Talk about efficient cost management for your organization!  

Here are 3 ways outsourcing your IT can save your business money:

1. Improved Efficiency⚙️
Access to a wealth of technical knowledge is one of the main benefits. If you are employing IT professionals internally, you might only be able to afford a few or even one staff. No one individual can know everything about technology because it is such a vast and complicated field. Because of this, outsourced IT specialists will have more time to provide your company solutions and value and require less time to conduct research. More effectiveness equals greater value for your money. 

2. Ability to Scale Up or Down Easily⏱️
You can alter your hours from month to month, which is another reason that outsourcing IT operations saves your company money. Consider the scenario where your company is seasonal, and you require more assistance during the summer than the winter. With an MSP, this is simple to alter. More hours during the months you need them is the solution. Or perhaps you need to work fewer hours for a month or two to save money because your cash flow has decreased. This is one of the benefits of outsourcing: you can decide how many hours your company needs. 

3. No Hiring, Onboarding, or Training Costs🧑🏼‍🤝‍🧑🏼
From hiring to providing benefits, training and more, it costs a lot of money to bring someone in-house. By outsourcing your IT (or any other) needs, you’ll be saving on all these costs. You don’t have to worry about HR costs, bonuses, or insurance. You also don’t have to worry about managing that employee. 

How a transportation company grew their IT environment!

A transportation company with 500+ employees was looking for ways to better understand and assess the current technology that they had deployed. They were looking for opportunities to optimize their technology on an ongoing, monthly support basis to ensure that they were getting the most from their investment.  

By leveraging the available Cloud technologies, the transportation company was able to achieve the following key objectives 

💰 Better cost optimization  

💰 Flat monthly or annual fee 

💰 Ensuring predictable monthly and annual costs 

By adopting the cost-effective, consistent, and measurable support model of an MS Provider, the transportation company is now able to utilize their internal IT staff to focus on bigger picture, more strategic activities relating to the company’s overall goals and objectives. Being able to leave their server and Citrix support to a third-party vendor and fully utilize their internal IT team has enabled the organization to better control their costs and take full advantage of the valuable IT resources they have at their disposal. 

outsourcing it ebook

3 key benefits achieved from outsourcing their IT services  

Managed IT Services enables you to ensure that your company has the appropriate technology, infrastructure, and degree of support at a cost that is affordable. 

💻Full utilization of valuable in-house IT resources 
🎯Internal IT staff can focus more on overall goals and objectives
💵Better cost control 

Along with outsourcing its IT operations, the organization is also receiving ongoing, regularly scheduled strategic consultations that help them to align its business objectives with the appropriate technology initiatives. 

When is it appropriate to outsource to an MS provider?   

MS Providers are experts at knowing what's fresh and exciting in the market, as well as when new technology will be released. Outsourcing the management and maintenance of your technologies and IT-related requirements (all or a portion of them) is known as utilizing Managed IT Services. Most businesses have operational IT and strategic IT to manage. They can outsource either one or both these activities.    

⚙️ Operational IT includes support activities such as password resets, email support, software and hardware support, remote desktop support, root cause analysis coordination, and report generation.   

📍 Strategic IT, on the other hand, includes resources such as a proactive security strategy to help mitigate threats, licensing support and guidance, and cost optimization support to guarantee that you are only paying for what you need and getting the maximum ROI (return on investment).   

If your company requires support in any of these areas, consider outsourcing your IT. Having a team of IT experts deliver high-quality managed IT services can free up your management's time while also improving your technology to keep you up to date and on top of the ever-changing technological landscape. 

Learn more or get an estimate to see how we can help you make your IT operations more efficient. 

This content is part of "5 Ways that Outsourcing IT helps Increase ROI on your IT Spend." Download the eBook to learn more! 

Edited by: Tristan Strawbridge and Betty Quon 

Published by ProServeIT July 5, 2022