Reason #1 - Cost Reduction

An in-house IT staff of one or more can consume a significant percentage of the operating budget of any Small to Medium Sized Business. The same services can often be delivered on an outsourced basis for normally a fraction of the cost. Initially, it may seem expensive to outsource because of a consulting firms hourly rate. However, the truth is that over time outsourcing is a very economical decision. True, outsourcing usually involves an up front expense. However, those costs are generally less in the long run than hiring and maintaining and internal salaried staff. Beyond salaries, you have to consider the ongoing costs of training and insurance as well as the time and money required to hire in-house staff in the first place.

Reason #2 - Expertise and Broader Experiance

This is an often overlooked benefit of outsourcing. Internal full time IT staff expecially for a smaller company are using "generalists". Working with a consulting firm gives companies access to specific expertise and broader experience accross many companies and industries. Solutions are implemented by specialists in a fraction of the time with less downtime and frustration.

Reason #3 - Fewer Internal Disctractions

Small and medium-sized businesses without dedicated IT personnel who internally manage their computing resources are consuming valuable human resources simply managing and maintaining common business tools: computers. By outsourcing IT services, a business owner liberates employees from low-value computer maintenance tasks and allows them to focus on higher-value tasks more closely related to their professional expertise and core business functions.

Reason #4 - Business Continuity

Very few small- to medium-sized businesses have a comprehensive and clear disaster recovery strategy, and yet many surveys have shown that as high as 90% of small businesses who suffer a catastrophic loss of data are out of business within a year.

Reason #5 - Projects, Projects, Projects...

Outsourcing allows you to expand and contract your IT Staff without the constant cycle layoffs, rehiring and retraining. A small idea that can improve user productivity may add months to your IT schedule. Projects pile up and hiring full time employess with Salary and Benefits is prohibitive. Outsourcing projects to a firm allows you to control the cost and ease the load of your internal staff.