IT outsourcing holds concrete benefits for SMEs

29 Mar 2010

Company size is irrelevant when it comes to unlocking the benefits of IT outsourcing, a new report suggests.

The report, entitled ‘IT Outsourcing – Size Doesn’t Matter. How SMEs Can Realise the True Power of Technology’, by Irish-owned managed services company HiberniaEvros Technology Group, says that technology is now moving so quickly that it is difficult for an internal IT department or individual in an SME to remain on top of trends, including issues such as security, new products, managing mobility and the move to social media.

IT provision in smaller businesses

According to John Kennedy, sales and marketing director with HiberniaEvros, for smaller businesses with either a small or non-existent IT department, the responsibility for IT provision is often assumed by someone who is busy with the day job. “This usually means that the main day-to-day focus is on keeping the existing equipment working – with little or no time for ensuring that the data is safe, the environment stable or how IT can best serve the business in the medium term.”

He added that if there is an internal IT department, just outsourcing some elements of the service provision will free up time to focus on more strategic elements of the business.

“Most of the IT outsourcing deals we hear about have tended to be major projects involving hundreds of staff and millions of euro. But the one sector that can really benefit from outsourcing is SMEs,” Kennedy noted.

An earlier study by HiberniaEvros found that of those SMEs who are already using IT outsourcing, 63pc listed “focus on core business” in the top 2 reasons for doing so. Cost saving was SMEs’ second most popular reason for outsourcing their IT, mentioned in their top 2 choices by 51pc. Meanwhile, “releasing internal IT staff for more strategic work” was highlighted by almost half (47pc).

The IT outsourcing study may be downloaded from the HiberniaEvros website.

Photo: John Kennedy, sales and marketing director with HiberniaEvros

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