Capterra Logo
Helping businesses choose better software since 1999

Capterra Glossary

IT Outsourcing

IT outsourcing is when SMBs give IT-related tasks to an external company. These tasks might include:

  • Server management

  • Cloud computing

  • Networking

  • Cybersecurity

  • Infrastructure management

  • Data governance

  • Administrative tasks

  • Software management (Software-as-a-Service or SaaS)

Outsourcing helps to free up the resources required to manage and maintain IT processes or equipment such as servers, networks and data centers. Businesses negotiate contracts with external providers, resulting in service-level agreements (SLAs) that detail the requirements for outsourced tasks. 

What Small and Midsize Businesses Need to Know About IT Outsourcing

IT outsourcing benefits businesses without the resources, time, or money to carry out IT tasks on their own. By outsourcing these duties to a third-party company, an organization can improve productivity among their teams. It will also help businesses reduce labor costs, identify cost savings, and grow their company.

Related Terms