Outsourcing has gained popularity over the last few years as companies around the globe have turned to outside experts to deploy sound technology strategies.
Once reserved for larger companies, outsourcing is now viewed as a cost effective alternative to in house solutions for companies of all sizes.
As the trend toward outsourcing moves into the SMB market, small companies are learning to leverage technology to streamline business operations and automate their business processes to create bigger efficiencies.
One of the main reasons that SMBs are increasing their use of outsourcing services is to help lift the burden from already taxed IT staff. According to The Yankee Group.
One of the fastest growing segments of SMB outsourcing is that of Web hosting. A growing percentage of companies are turning to outsourced Web hosting solutions to ensure that their Web site is secure, reliable.
The SMB market is an important market segment in today ís economy and is expected to grow significantly over the next three to five years.
The demand for more complex Web site functionality, ever escalating costs and greater outsourcing benefits will further spur outsourced hosting among SMBs.
The bottom line As SMBs evaluate the shift to an outsourced Web hosting model, Total Cost of Ownership (TCO) is often viewed as a major benefit of outsourcing. For SMBs, establishing their own hosting capabilities internally often is a larger investment than outsourcing.
The TCO of self-managing a Web site is generally higher due to the costs of an in-house IT staff whose primary responsibility is to manage the Web site. In addition, TCO also factors in the equipment, software, and initial set up costs, as well as the periodic upgrading of equipment, 24/7 help desk services and around-the clock monitoring and management.
A reduction in capital expenditures is a key consideration for any business. By leveraging a Web hosting providerís data center infrastructure, network and expertise, companies can expect a 25 to 80 percent cost savings over in house solutions.