IT Outsourcing benefits for the Small Businesses

IT Outsourcing benefits for the Small Businesses

Explore IT Outsourcing for small businesses for two major reasons - Convenience and Ease.

Blog overview: Discover the benefits of IT outsourcing for small businesses with Clarion Technologies. From cost savings to access to expertise, outsourcing IT services enables efficient business growth and global reach. Choose Clarion Technologies for reliable IT outsourcing solutions tailored to your needs.

The efficient operation of small businesses is crucial for their success. Outsourcing IT services presents a practical solution for such businesses, offering cost savings, enhanced IT infrastructure, and access to proficient IT professionals.

This is where the concept of IT services outsourcing becomes invaluable, providing a practical and economical resolution. For small and medium-sized enterprises (SMEs) and startups, the management of IT resources poses significant challenges, given their limited financial means compared to larger corporations. Staying abreast of the latest IT developments can prove overwhelming. However, the advantages of IT outsourcing extend beyond mere infrastructure maintenance; it allows these businesses to collaborate with external providers to oversee their IT requirements. Consequently, they can prioritize their core business functions such as sales, marketing, and customer service, while entrusting IT management to seasoned professionals.

But what precisely entails IT outsourcing, and how might it advantageously impact your small enterprise? Before we explore further, here are some interesting IT outsourcing market statistics:

  • Analysts predict that the size of the worldwide business process outsourcing market will likely hit USD 525.2 billion by 2030, with a projected compound annual growth rate (CAGR) of 9.4% from 2023 to 2030. Source
  • 37% of small firms outsource one or more business processes. Source
  • 70% of firms consider outsourcing as cost-effective due to its ability to cut down on expenses related to hiring internal staff. Source
  • Following the pandemic, 45% of businesses have planned to increase their outsourcing activities, often with a focus on acquiring specialized skills unavailable internally. Source

Before moving forward here is a blog we curated to help our readers understand better. - IT Outsourcing Strategies: The Best Practices for the Companies.

What is IT Outsourcing?

IT outsourcing involves employing external service providers to efficiently deliver IT-enabled business processes, application services, and infrastructure solutions to achieve business objectives.

Additionally, outsourcing encompasses utility services, software as a service, and cloud-enabled outsourcing. It aids clients in devising appropriate sourcing strategies and visions, selecting suitable IT service providers, crafting optimal contracts, and managing deals to establish sustainable and mutually beneficial relationships with external providers.

Outsourcing encompasses various types, including:

  1. Information technology (IT) outsourcing: Firms enlist third parties to handle IT tasks like helpdesk support, application development, maintenance, and infrastructure management.
  2. Customer service outsourcing: Businesses engage third-party professionals to oversee customer-related duties such as call handling, email responses, and timely issue resolution.
  3. Accounting outsourcing: Companies contract third-party firms to manage accounting tasks smoothly, including bookkeeping, payroll processing, and tax obligations.
  4. Legal outsourcing: This form of outsourcing enables companies to secure the services of third-party legal professionals for accurate legal guidance and lawful contract creation.

Top Benefits of IT Outsourcing for small businesses

1. Access to experts and cutting-edge technology

Outsource or offshore software development companies possesses advanced tools and all means to keep and maintain cutting edge technology. So, when a small business opts for IT outsourcing services, they get secure routers, high-speed computers, top-tier hardware and software, servers, and experts too.

Engaging a third-party IT provider grants access to experienced professionals, facilitating efficient business growth. This opportunity is particularly beneficial for small or early-stage businesses operating on limited budgets, allowing them to deliver quality content to consumers with expert assistance.

In a nutshell, with IT Outsourcing services, any small business can get a smooth access to better equipment, and resources and that too without buying for any of that. 

2. Minimizes capital cost

Cutting the capital cost is one of the biggest benefits of IT outsourcing services. And how does it happen? Well, IT outsourcing services shifts the fixed costs into variable cost. It helps you to be free of large expenditure in the initial stages itself, and releases capital for investment in your business. IT Outsourcing for small businesses works in a way of making your firm more alluring. The reason behind this is; with IT Outsourcing services any business can pump higher capital that too into the revenue generating streams.

Outsourcing IT services offers cost savings for small businesses by eliminating the need to invest in expensive software and infrastructure maintenance. This is one of the most crucial benefits of outsourcing as it reduces workload allocation and enables the company to focus more on areas needing improvement. The saved funds, originally allocated for IT staff salaries and benefits, can be redirected to reward other employees, fostering financial motivation.

3. Enhances business efficiency

We all have heard of the phrase – ‘time is money’. And it has become more relevant in this ever-evolving business world. Approximately 27% of the small businesses opt to outsource in order to enhance the efficiency. The interesting fact is, this data is quite same in 2021 and 2022 too.

When an organization does everything from research to development to marketing they are bound to spend more than the budget. On the other hand, when we hire offshore development team, its them that does everything, giving us a competitive advantage.

Outsourcing IT enhances business efficiency by freeing up resources to concentrate on other areas and benefiting from economies of scale. It enables businesses to redirect IT staff to strategic tasks by outsourcing mundane activities like phone support and technical issue resolution.

4. Scalability: 

Outsourcing IT services facilitates scalable business growth without the burden of infrastructure investment or managing an in-house IT team. It allows businesses to expand their service offerings while maintaining focus on management and decision-making.

5. Higher Security

Protecting the sensitive data of an organization is still a concern for many businesses. In addition to that is also a challenge of disaster recovery. Well-designed IT outsourcing services is answer to these problems. As the technology advances, cyber-security continues to evolve tackling phishing and hacking attacks.

But hiring an offshore development team can help you get the best of the security services. You can opt IT outsourcing services for personal information and to protect financial data.

Reputable IT outsourcing companies prioritize data security, mitigating the risk of data breaches and cyberattacks. They ensure customer data remains secure, providing peace of mind to businesses and their clients.

We insist on security because any breach in it can cause you the loss of customers and their faith.

6. Better IT Management

When you hire an offshore development team they can tackle your business and fulfill your business needs in the greater scheme. Besides with their technological strength and industry knowledge, professional IT services provider can offer greater insights that you might miss.

So apart from cost-effectiveness, better time management, top quality services, offshore IT services team streamline your process and boost your services and effectiveness.

7. Minimizes risk

Every time you hire a resource, can you ensure that they will be aware of the latest IT practices and trends? We don’t think anyone can. Therefore, we feel that hiring an offshoring partner is a much better option. Organizations that hire an offshore development team have all the required knowledge. It is because a lot of money and time is spent on resources training. Hence, such resources are well-aware and expert in tackling new tools and technologies.

The best thing is if any resource finds it difficult to solve any problem; they can always approach the seniors in their firm and get it done for you.

Outsourcing IT minimizes project failure risks by transferring responsibility to the third-party provider. This reduces the potential losses associated with infrastructure investments and salaries in the event of failure by an in-house team.

8. Added Flexibility

They say, when you hire a full-time outsourcing development team, you are not typically bounded by the 40 hours per week concept. You can bill the resources as per their time invested in your company. In a nutshell, you only pay for the work done and nothing more. Isn’t this interesting. 

A few years back, there were very trim options that could have helped you to grow your business. However, this is not the case now! With an outsourcing partner, you can hire an onshore development team that can take your business to the next level. Therefore, it is the wisest choice to hire an experienced and qualified partner who can understand your needs and are competent to fulfill them. 

Imagine having your project gets done and not having to assign any internal members or worry about the deadlines or capability of your resources. Just get the work done seamlessly and efficiently. 

9. Higher Compliance:

Quality IT outsourcing providers ensure adherence to modern enterprise regulations, saving time and money while preventing penalties for non-compliance.

10. Global reach:

Engaging in IT outsourcing allows businesses to collaborate with professionals worldwide, ensuring access to top talent and supporting customers across different regions.

Guidelines to consider before starting IT outsourcing:

  • Conduct thorough research: Prior to selecting an outsourced company, meticulously evaluate the available options, weighing the advantages and disadvantages while assessing their market presence and reputation. This proactive approach helps mitigate potential delays or issues arising from subpar work.
  • Written documentation: Ensure all agreements are documented comprehensively and signed by both parties, outlining specific needs, timelines, and deliverables. This safeguards against misunderstandings and establishes clarity regarding the scope of work.
  • Establish clear communication channels: Facilitate effective communication by establishing transparent channels between your business and the outsourced company. Clear communication mitigates misunderstandings and ensures alignment throughout the outsourcing process.
  • Monitor progress closely: Regularly monitor the progress of outsourced teams to ensure adherence to company requirements and predetermined benchmarks. This proactive monitoring helps maintain accountability and ensures that work is completed satisfactorily.


To enjoy the maximum benefits of outsourcing every small business must start with finding a trustworthy and reputable outsourcing partner. Another reason to opt for outsourcing for small business is that it can also help you with an accounting and financing software. All of these will extend you greater support.

If you are looking for a trusted partner, contact us now


Dilip Kachot, a seasoned Technical Architect with over 7 years of experience in the Mobility domain, excels in driving successful delivery of cutting-edge solutions. His expertise lies in architecting and implementing innovative mobility solutions that align with the evolving technological landscape.

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