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Outsourcing IT Services

Outsourcing IT Services: Data-driven Cost-effectiveness

Outsourcing IT Services: Data-driven Cost-Effectiveness

Business leaders are constantly developing new strategies to add to their cost-savings such as outsourcing IT services. 

According to procurement expert Daniel Usifoh, outsourcing was a reaction to the 1970s emphasis on the core competency of a business. As a result of the industrial revolution in the 1980s, business owners relied on external providers for non-core functions with the aim of saving money and optimizing profit. That was over 40 years ago. 

With the development of technology-driven outsourcing, virtual employees are now able to improve your bottom line and more. Read on to find out how outsourcing really boosts your business’s cost savings.

Reduced Costs

According to a 2016 Deloitte survey, outsourcing IT functions can result in up to 40% cost savings. This is far from the expense when hiring in-house talent. There are two ways that outsourcing produces these results.

First, outsourcing allows for lower labor costs, especially if you hire virtual employees from countries with lower costs of living such as the Philippines. You can pay your employees a fraction of the price any local IT expert expects while still providing advantageous wages.

An advantage of outsourcing through MOVE is the added operational efficiency that comes with partnering with an outsourcing partner. Outsourcing providers’ sole focus on one function can boost efficiency in this area. What follows is expert IT service delivery, application of industry best practices, and standardized processes. In turn, you can expect faster rates of project completion and thus cost optimization.

Reduced Risks

IT services are an integral part of the way a business operates which means any threats can have a massive effect on productivity. One of the advantages of outsourcing is that it can reduce risks in technology management. For MOVE, we outsource IT employees who are experts in their field. You can have the confidence that our virtual employees follow industry regulations, compliance requirements, and security protocols. 

This is backed up by a study by Computer Economics which revealed that 59% of organizations that outsource their IT functions see an improvement in their security and compliance. Furthermore, the redundancies created by outsourcing IT services can ensure your team an extra hand in case any emergencies arise.

Efficiency from Expertise

IT services encapsulate a wide range of functions including cloud services, email services, information reporting, and more. One of the outsourcing benefits is that you can hire experts in each of these specialized areas, increasing the efficiency of your services. This is proven by a Statista survey that 62% of those who outsource IT functions use these specialized skills and knowledge.


There will always be busy seasons for a business and this applies to its IT department as well. Outsourcing service providers allow you to scale your labor force, allocating resources wisely. You will not be caught red-handed overprovisioning or underutilization. Deloitte reports that the majority of organizations that took the 2016 survey report cite scalability as one of the main reasons for IT outsourcing.

The Bottom Line on Outsourcing IT Services: Data-driven Cost-Effectiveness

When you MOVE insource your IT functions you will see more cost-effective operations driven by data. If you want to get started on your outsourcing journey, look no further than MOVE or Managed Outsourced Virtual Employees. We can connect you with talented IT experts to support your growing business.

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