Manufacturers have become increasingly reliant on their technology to compete. The manufacturing industry faces numerous IT and security challenges, such as integrating legacy systems, maintaining 100% uptime, supply chain logistics, and ransomware. As such, manufacturing companies must ensure they have the right systems and technologies in place if they want to keep their business running like a well-oiled machine!
One way manufacturing companies can address their IT and security needs is by outsourcing these services to a third-party provider. Outsourcing can bring numerous benefits, but it also comes with its drawbacks. In this blog post, we will explore the pros and cons of outsourcing IT and security for manufacturing companies.
Pros of Outsourcing IT and Security:
More Value
Outsourcing IT and security can save manufacturing companies significant amounts of money. By outsourcing, the company does not have to invest in expensive hardware, software, and skilled personnel necessary to build their own IT team. Outsourcing providers can provide services at a lower cost due to their economies of scale.
Outsourcing brings more value, but it may not necessarily be cheaper than what you’re doing today. You may be under investing in technology and security today, so stepping up your IT may require increasing your spend. You get what you pay for, and the value of a professional IT team is more than worth it.
Expertise
Outsourcing providers specialize in IT and security and have access to the latest technologies and best practices. By outsourcing, manufacturing companies can leverage the provider’s expertise to ensure their systems are secure and up to date.
Providers can also offer guidance and support to help manufacturing companies develop and implement IT and security policies that are tailored to their specific needs and requirements. This can be particularly valuable for companies that may not have the internal resources or expertise to develop and maintain these policies themselves.
Focus on Core Business
Manufacturing companies can focus on their core competencies and leave IT and security to the experts. Outsourcing frees up time and resources to concentrate on what the company does best instead of fighting their own technology.
Scalability
Outsourcing IT and security can be very flexible, as providers can scale up or down services as per the company’s needs. This means the company can adapt quickly to changes in demand or technology without incurring additional costs.
Cons of Outsourcing IT and Security:
Less Control
Outsourcing IT and security means handing over control of sensitive data and systems to a third-party provider. This can lead to concerns about data privacy and security breaches.
To mitigate these risks, it is important for companies to carefully evaluate potential outsourcing providers before signing on. This may involve conducting thorough due diligence to assess the provider’s track record, security practices, and data privacy policies. Companies should also ensure that they have a clear understanding of their own responsibilities when it comes to data privacy and security and should work with their outsourcing provider to establish clear protocols and procedures for managing and protecting sensitive data.
Communication Challenges
Outsourcing providers may not be available when needed or may not fully understand the manufacturing company’s business processes, leading to communication issues. Since the provider is a third-party organization, there may be gaps in understanding of the manufacturing company’s business processes, which can lead to miscommunication or confusion about requirements and expectations.
These risks can be mitigated through careful planning, clear communication, and a strong working relationship between the manufacturing company and the outsourcing provider.
Dependency
Outsourcing providers may become a critical dependency for the manufacturing company. This can be a risk if the provider experiences financial difficulties, technical issues, or other problems.
Outsourcing IT and security can provide significant benefits to manufacturing companies. However, it is essential to weigh these benefits against the drawbacks carefully. By understanding the pros and cons of outsourcing, manufacturing executives can make an informed decision that aligns with the company’s goals and objectives. So, manufacturing bigwigs, take heed: understand the potential benefits and drawbacks of outsourcing, and you’ll be in a much better position to steer your company towards success.
Looking to outsource your IT?
Check out our IT Outsourcing service to see if we’re a good fit for your business!