The IT Outsourcing Landscape in 2024

Posted on Friday, May 31, 2024

Businesses are turning to outsourcing as a strategic solution to plug gaps in their processes and operations. 

IT support, in particular, is the most commonly outsourced business activity, with over 35% of businesses tapping into external IT expertise.

By partnering with specialised IT service providers, savvy businesses streamline operations to maximise efficiency, cut costs, and gain access to the talent and infrastructure they need to grow while mitigating risks. 

Read on to learn more about the state of IT outsourcing and how your business can benefit. 

The Unstoppable Rise of IT Outsourcing 

The country’s appetite for IT outsourcing services has been on an unstoppable upward trajectory. 

According to Statista, the UK IT outsourcing market is projected to reach a staggering £28.7 billion ($39.99 billion) in 2024. This growth is fueled by a compound annual growth rate (CAGR) of 9.53%, reflecting increased investment in IT services to support business functions.

So, what’s the driving force behind this trend? We can attribute it to several key factors. 

  • First, businesses are looking to access cutting-edge technological expertise and innovation, often unavailable in-house without substantial investment in recruitment and training. 
  • Second, outsourcing IT functions allows businesses to tap into advanced technologies and skills, driving efficiency and allowing them to focus on their core business.
  • Third, the rise in outsourcing is fueled by the need to achieve cost efficiency and manage operational risks more effectively. 
  • Finally, companies are leveraging outsourcing to reduce their spending on IT infrastructure, slash costs, and improve the quality of their products and services. 

One of the key points here is that outsourcing is a force multiplier for modern businesses. 

It’s about leveraging external expertise to stimulate growth and save money so you can focus on what you do best: running your business and strengthening core products and operations. 

The Benefits of IT Outsourcing: A Pathway to Success

Now, let’s explore some of the many benefits of outsourcing IT operations and services:

1. Cost Optimisation

One of the leading benefits of IT outsourcing is saving money. In fact, some 59% of businesses worldwide outsource primarily to reduce hiring, operations, and training expenses. 

By partnering with external service providers, companies swerve the overhead costs of maintaining in-house IT departments, including salaries, training, and infrastructure.

2. Access to Specialised Expertise and Cutting-Edge Technologies 

Businesses choose to outsource to tap into diverse skills and expertise, which may often be scarce or expensive to acquire and maintain in-house. 

An astonishing 93% of businesses report experiencing an IT skills gap, and hiring professionals internally is extremely competitive. 

IT outsourcing helps businesses beat talent shortages, enabling businesses to tap into highly skilled professionals without the associated costs of internally recruiting and retaining IT talent.

3. Scalability and Agility

IT outsourcing offers companies the flexibility to quickly adapt to changing market opportunities without the constraints of building and maintaining in-house IT infrastructures.

As businesses grow, their IT needs evolve, ramping up their demand for additional resources and infrastructure. 

By outsourcing, companies can seamlessly scale their IT capabilities up or down, eliminating the need for costly and time-consuming in-house expansions. 

4. Focus on Core Competencies and Strategic Initiatives

By outsourcing IT functions, businesses can redirect their internal resources towards core competencies and strategic initiatives that drive revenue and growth. 

Strategically reallocating resources boosts your business’s productivity, innovation, and overall operational efficiency. 

It enables companies to concentrate on activities that directly contribute to their competitive advantage.

Moreover, IT outsourcing frees businesses from managing complex, time-consuming IT operations, enabling them to focus on their core business objectives without the challenges of maintaining in-house IT infrastructure.

5. Robust Cybersecurity and Data Protection 

With over 50% of businesses expected to face security breaches in 2024, cybersecurity and data protection have become paramount concerns for businesses of all sizes and industries. 

IT outsourcing offers access to robust cybersecurity measures, including 24/7 monitoring, regular security updates, and adherence to industry best practices.

Exceptional levels of security would be challenging and costly to achieve with in-house resources alone, making IT outsourcing a strategic choice for businesses seeking to bolster their security. 

6. Business Continuity and Disaster Recovery 

Remarkably few businesses have robust business disaster recovery plans in place. 

IT outsourcing providers like us at Mustard IT offer comprehensive backup and recovery solutions, ensuring businesses can quickly restore their IT systems and data, minimising the impact on operations and customer service.

Understanding the Challenges and Risks of IT Outsourcing

While the benefits of IT outsourcing are evident, there are some pitfalls to avoid. 

Managing remote teams across different cultures and time zones can pose communication and coordination obstacles. 

Additionally, ensuring data security and compliance with industry regulations is paramount when entrusting sensitive information to third-party service providers.

To mitigate these risks, look for partners like Mustard IT that offer:

  • Clear service level agreements (SLAs)
  • Comprehensive security protocols
  • Effective communication channels
  • Rigorous vendor evaluation and selection processes
  • Ongoing monitoring and performance evaluation

Partnering with Mustard IT: Your Trusted IT Outsourcing Provider

Looking to scale and support your IT operations with outsourced services? Mustard IT offers a wide range of IT services, including:

  • IT Support: Tailored IT support services, including unlimited remote support for your IT teams and infrastructure.
  • Cloud Solutions: Robust cloud solutions, including hybrid capabilities and integration with major cloud platforms like Microsoft Cloud and Amazon Web Services (AWS).
  • Network Design and Infrastructure Management: Secure network solutions, infrastructure planning, and management of IT roadmaps, budget planning, and performance reviews.
  • Hardware, Servers, and Storage: Comprehensive hardware solutions, including file servers, storage arrays, workstations, and network cabling.
  • Remote Work Solutions and Training: Solutions and training to support remote work environments, ensuring businesses can operate efficiently in a distributed workforce.
  • Consultancy and Compliance: A range of consultancy services, including disaster recovery planning, network services, IT relocation, and GDPR compliance services, to ensure businesses meet regulatory requirements.

By partnering with Mustard IT, businesses can confidently navigate the complexities of the digital age, leveraging cutting-edge technologies and best practices to drive efficiency, security, and innovation.

Contact us today to embark on a journey toward streamlined operations, reduced costs, and unparalleled access to the latest technologies and expertise.