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The ROI of IT Outsourcing in a Challenging Economy

true roi of outsourcing it

Tired of IT headaches – and the costs that come with them? You’re not alone. With slowing economic growth, rising inflation, geopolitical tensions, and new U.S. tariffs driving costs higher, businesses face increasing pressure to cut expenses while maintaining operational efficiency and security.

But here’s the thing: handling IT in-house can be a major drain on time, money, and resources.

That’s why more organizations are turning to outsourced or managed IT services. Done right, outsourcing IT doesn’t just save you money – it delivers a real, measurable return on investment (ROI).

1. Controlling Direct IT Labor Costs

Hiring and retaining in-house IT staff is expensive. For instance, today’s average annual salary for an in-house IT manager ranges from $133,877 to $162,087. Factor in benefits, training and miscellaneous personnel expenses – not to mention a difficult labor market that may have you looking to replace said employee in a few short years – and your financial burden can become overwhelming.

Conversely, outsourcing IT to a qualified managed service provider (MSP) can reduce your monthly IT spend while giving you access to an entire organization’s worth of resources and expertise. You’re not saddled with recruiting, training or rehiring and have 24×7 support for a fraction of the price of hiring a single or multiple individuals directly.

2. Increasing Employee Productivity

When your internal IT team spends most of their time fixing printers and resetting passwords, there’s little room for strategic work. Studies show that internal IT teams can spend as much as 30-40% of their time on low-level, repetitive tasks.

Outsourcing this day-to-day troubleshooting gives your team the breathing room it needs to concentrate on business-critical initiatives, saving your business time and money. Meanwhile, your outsourced MSP can keep a watchful eye on your networks via 24×7 monitoring, helping to minimize disruptions and keeping your workforce productive and focused.

3. 24×7 IT Support = Less Downtime + More Savings

When systems go down, your business loses money – plain and simple. The average cost of an unplanned IT outage is a staggering $14,056 per minute, with large enterprises facing costs as high as $23,750 per minute. An outsourced IT provider delivers round-the-clock monitoring and rapid response to keep you running smoothly, saving you from high operational, compliance and reputational costs associated with unexpected downtime.

omega customer testimonial“Omega Systems seamlessly helped us migrate from locally-based to fully web-based tools, transitioning our internal support to external without losing responsiveness. Since partnering with them, our per device spend on purchase, install, and support has dropped significantly, response times for open tickets have improved, and overall satisfaction has increased. What truly sets Omega apart is their ability to adapt to major changes—whether it’s our growth, the challenges of COVID, evolving operating systems and tools, or even hacking attempts by foreign entities.”

—Michael Schreiber, COO, Robert F. Kennedy Human Rights

4. Saving on Technology Systems & Toolsets

Staying on the leading edge of technology isn’t cheap. New hardware, advanced security tools, and constant upgrades can crush your budget.

IT outsourcing lets you tap into the latest innovations without footing the bill for direct ownership. Managed IT service providers have long-standing relationships with IT distributors and vendors and can pass on hardware and software cost-savings to customers who would otherwise have to pay full price. Access to enterprise-grade cloud environments, next-gen firewall security, and advanced threat prevention tools like MDR and EDR can stretch your IT budget and save you significant dollars over the course of an IT lifecycle.

5. IT Security: Spend Now (Proactive) vs. Spend Later (Reactive)

Data breaches are expensive – and getting worse. The most recent IBM Cost of a Data Breach Report pegs the global average at $4.88 million – a record high. Unfortunately, too many businesses balk at the notion of adopting proactive cybersecurity measures like Managed Detection and Response (MDR) and EDR with Automated Moving Target Defense (AMTD), despite evidence showing these advanced tools can actually save you money in the long run.

omega insight Consider the long-term impact of implementing a basic control such as multi-factor authentication (MFA) for $5/user/month versus the hundreds of billable hours that will be required by security analysts, lawyers, cyber insurance providers, and others to remediate and recover from a cybersecurity incident when it’s already too late.

6. On-Demand Cybersecurity Advisory

Beyond addressing immediate challenges, the right MSP should assist in future-proofing your business. Virtual Chief Information Security Officer (vCISO) services offer expert guidance on technology investments, cybersecurity strategies, compliance requirements, and digital transformation – without the expense of full-time executives.

Key benefits of vCISO services include:

  • Cost Savings: With the average U.S. CISO salary at $341,265, virtual services offer comparable expertise at a fraction of the cost.
  • Access to Expertise: vCISOs ensure your technology strategy aligns with business goals while strengthening cybersecurity defenses.
  • Scalability & Flexibility: Virtual services adapt to your business needs, providing executive-level leadership without long-term commitments.

THE BOTTOM LINE: OUTSOURCING IT – WHEN DONE RIGHT – PAYS OFF

In a challenging economy, outsourcing IT isn’t just a cost-cutting move – it’s a smart investment. From reducing expenses and increasing efficiency to strengthening security and providing strategic direction, the ROI of managed IT services is clear.

Partnering with the right IT service provider gives you access to advanced technology, expert support, and strategic guidance – without the cost and complexity of managing everything in-house. Whether you need outsourced IT support or specialized services like vCISO consulting, a trusted partner can help you stay agile and competitive.

Ready to see how the right MSP can transform your business?

Explore Omega’s proven solutions today

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