IT Outsourcing: Saving Costs and Boosting Efficiency 

The UK’s IT outsourcing industry has grown substantially in recent years, with businesses increasingly turning to external providers for critical IT support services. In 2023, the UK's IT services market was valued at over £30 billion, and outsourcing played a key role in this growth.  

Many companies opt for outsourcing to fully manage their internal IT services, access senior IT expertise and reduce operational costs. In fact, up to 70% of B2B decision-makers say their companies outsource some aspect of their business, with IT support being the most frequently outsourced function. 

Why are so many businesses shifting to IT outsourcing and consultancy? Quite simply, substantial cost savings and efficiency. Not only does it streamline processes by having a digital partner with senior IT expertise (which you need when navigating through complex digital transformations), but it also stops continually being under the financial pressure that comes with an overscaled and full-time internal IT team.  

5 IT Outsourcing statistics you need to know 

• 92% of G2000 companies use IT Outsourcing. 
• IT Outsourcing saw a growth of 38% between 2019-2024. 
• 81% of businesses outsource cybersecurity to external service providers. 
• 57% outsource for cost reduction 
• 27% outsource to enhance efficiency and fill talent gaps with senior roles. 

Key IT roles that can be outsourced to streamline your business.

IT Director 

An IT Director ensures that a company’s technology systems are secure, up-to-date and aligned with business goals. This role involves overseeing technical projects and managing the company’s tech strategy. 

However, many SMEs cannot justify the cost of a full-time IT Director. That’s where outsourcing comes in. PSP offers experienced IT Directors who can work full or part-time and provide strategic guidance as needed. 

Cost Benefits: 

• Optimises IT spending 
• Selects cost-effective technology solutions 
• Reduces risk of cyber threats 
• No overhead costs (training, benefits, bonuses) 
• Delivers immediate strategic value

Software Tester

Outsourcing software testing helps businesses ensure the quality and reliability of their software, applications and websites without the overhead of a full-time hire. External testers can join on a part-time basis or for specific projects, providing the flexibility and expertise that many companies need. 

PSP’s Software Testers: 

Manual Testers: Simulate real-world usage to verify functionality, identify defects and ensure the solution meets system requirements. 

Automated Testers: Use scripts and tools to perform repetitive tests quickly and efficiently, which is ideal for large projects. 

Regression Testers: Regression testing is a critical part of the software development process, ensuring that new code changes don’t break existing functionality.

Cost Benefits: 

• Flexible pricing models (pay for services as needed) 
• Lower staffing costs 
• Fewer bugs and errors reduce costly fixes thanks to a large in-house team
• Automated testing boosts efficiency and operates 24/7 

Software Developer 

Outsourcing software development provides access to a diverse pool of technical skills and expertise, enabling businesses to build robust software solutions without the cost of an in-house team. 

Cost Benefits: 

• Flexible service models 
• Reduced staffing expenses 
• Higher-quality development decreases long-term maintenance costs 
• Automated testing reduces repetitive tasks and errors 

Save up to 70% on IT costs by outsourcing to PSP

Business Analyst 

A business analyst ensures that IT projects align with business goals by translating requirements into technical specifications. They optimise processes, identify inefficiencies and recommend improvements, making IT projects more effective and cost-efficient. 

Cost Benefits: 

• Streamlined processes lower operational costs 
• Accurate requirements gathering reduces rework 
• Enhanced resource allocation improves productivity 
• Effective solutions minimise costly project revisions 

IT Project Manager 

An IT Project Manager oversees project planning, resource allocation and risk management, ensuring successful project delivery. They act as the bridge between stakeholders and technical teams, keeping everyone aligned on project goals. 

Cost Benefits: 

• Flexible contracts based on project needs 
• Reduces risk of project overruns or budget issues 
• Expertise accelerates project timelines, cutting costs 
• Proactive scope creep management avoids costly disruptions 

Cyber Security Officer 

A Cyber Security Officer protects your business from digital threats, ensuring data confidentiality, integrity and compliance with regulations. They manage security policies, conduct risk assessments and implement strategies to reduce cyber attack risks. 

Cost Benefits: 

• Minimises risk of costly cyber incidents 
• Ensures compliance and avoids penalties 
• No HR or additional staffing expenses 
• Access to specialised skills and expertise 

How can I start saving money on IT costs?

For 16 years, PSP has delivered cost-effective IT support services to businesses, professional bodies and chartered institutes. Our team of 34 in-house IT experts collaborates closely with clients to optimise their IT practices, improve business processes and help them achieve their strategic objectives, so if you're ready to transform your IT operations, let's talk.