The useful advantages and benefits of Software-as-a-Service solutions have led to increased interest in Infrastructure-as-a-Service solutions. The conventional approach required firms, irrespective of its size, to invest in basic IT infrastructure, which could then be supplemented with SaaS contracts.
With increased availability of high-speed Internet and cloud computing services, many firms are considering the pros and cons of outsourcing their entire IT infrastructure as a whole. Read ahead for a look at six useful benefits of such an outsourcing decision.
1. Freedom from the IT Refresh Cycle
IT technologies need to be refreshed and upgraded every five years. In a span of five years, cloud computing has rendered conventional computing obsolete. With emphasis on virtual reality and wearable technologies, any company investing in cloud computing today may be required to spend more on upgrades in the next five to seven years.
Outsourcing IT infrastructure transfers this responsibility to the service provider. The firm can simply focus on utilizing the latest technologies to maximize productivity and efficiency.
2. Reduced Capital Expenditure
Your decision to outsource IT will free you from the responsibility of incurring capital expenditure to setup your IT infrastructure from scratch. Instead, you simply need to incur operational expenditure towards the cost of utilizing the services of the third party service provider.
For a small firm with limited access to capital, this can be a huge advantage that allows the firm to compete with the biggest enterprises on an equal footing.
While in-house IT infrastructure may offer limited scalability of specific programs and services, firms never have the option of scaling the usage of the IT infrastructure itself. Infrastructure outsourcing offers this very significant advantage at a very affordable cost.
Increasing or reducing the scale of usage of IT infrastructure will involve nothing more than a variation in the cost of the services. It is for the service provider to worry about the technical aspects of improving or reducing infrastructure capacity.
4. Significant Cost Savings
An infrastructure outsource decision can lead to significant cost savings. From freeing up office space that would have been used for computer equipment to reducing the cost of manning the department, the outsourcing decision will result in significant cost savings for the organization.
Further, the switch will ensure a significant reduction in recurring expenses, which will provide financial savings even after considering the cost of the outsourcing contract.
5. Greater Flexibility
Infrastructure outsourcing services give firms the freedom to shift to the latest technologies by simply renegotiating or switching contracts. A decision that would have otherwise required a lot of planning can be taken quickly without any risk of adverse consequences. If the shift does not work, then the firm can quickly revert to their previous strategy without having to worry about loss of the investment.
6. Improved Employee and Customer Experience
The right outsourcing firm can have a huge positive impact on the overall quality of service offered to customers and other stakeholders. From improved accounting and bookkeeping, faster customer support, to smarter HR policies—effective IT infrastructure can help a firm overcome all limitations and challenges to enjoy sustained growth and profits.
From a decision that merely offers cost savings to a move that offers strategic and functional value to the organization, the implications of opting for outsourced IT infrastructure has changed over the years. However, there is no doubt that such a move offers significant long-term financial and strategic benefits to the organization.
Click here for more details on Infrastructure Outsourcing.