The 7 Biggest Risks for Businesses Without Managed IT Services
Small IT teams are up against a lack of resources and expertise to handle IT issues effectively. In turn, they turn to external support to fill in the gaps.
However, short-term IT help isn’t always the wisest choice for addressing the biggest IT risks businesses face today.
Let’s explore the IT risks companies struggle with due to constrained in-house teams or labor shortages and why ongoing partnerships are better than piecemeal approaches to solving these problems.
What is the greatest IT risk facing most companies?
The greatest IT risk in companies centers around not having the resources or expertise to prevent issues before they happen and fix problems after they occur.
Unsurprisingly, the Institute of Internal Auditors (IIA) identified cybersecurity, human capital, and business continuity as the most concerning categories for underprepared and understaffed businesses. These are priority concerns due to their potential to severely impact a company’s operations, reputation, and financial stability.
Below, we’ll unpack these risks and explore how managed IT services play a vital role in balancing the limitations of in-house teams.
1. Single point of failure
Depending solely on a single employee for IT knowledge and system management poses a significant risk for businesses.
This approach creates a single point of failure, where the absence or departure of one individual can lead to major disruptions in the entire IT infrastructure. It’s particularly problematic for businesses in growth phases, as scaling up the IT infrastructure becomes difficult without the presence or guidance of this key person.
Constrained teams must diversify their approach to IT management. Managed IT partnerships break down data siloes and offset the knowledge and skills gaps for companies without the resources to navigate staffing in such a high-demand field.
2. Inadequate IT support
Inadequate IT support becomes a critical issue as a company grows. This problem arises when IT demands outpace the capabilities of a small team or an individual.
When a small IT team is overwhelmed by an increasing and fluctuating volume of requests, some days face a surge, and others experience a lull. This inconsistency challenges the team’s ability to provide stable and efficient IT support, creating opportunities for system inefficiencies or failures.
Outsourcing IT through an experienced managed IT service partner addresses these challenges by providing scalable and flexible IT solutions that adapt to a company’s evolving needs.
3. Cybersecurity vulnerabilities
Companies with limited IT resources and expertise face an increased risk of cybersecurity threats. Gaps in cybersecurity expose companies to overwhelming financial risk.
According to IBM, the average data breach costs $2.98 million for businesses with fewer than 500 employees. Inexperienced staff doesn’t have the training to combat costly cybersecurity issues.
When in-house teams are undertrained, overworked, and understaffed, it leads to piecemeal IT solutions from contractors or consultants. This type of short-term support treats symptoms rather than proactively preventing issues.
4. Poor recovery for disasters, loss, theft, or damage
Small IT teams face significant challenges in recovering from disasters, loss, theft, or damage.
The limited capacity of in-house teams makes it challenging to respond swiftly and effectively to such incidents. Outsourcing tasks to contractors often isn’t feasible due to the urgent and complex nature of these situations.
To complicate matters further, many companies don’t have detailed incident response plans, making it impossible to manage and recover from IT crises efficiently.
This situation underscores the importance of a partnership that provides ongoing support with guaranteed rapid responses instead of help after you have a problem.
5. Compliance and regulatory risks
Compliance and regulatory risks are significant when small teams oversee a company’s data protection and industry regulations. This risk is heightened due to the complex and ever-evolving nature of regulatory requirements.
The requirement to use Multi-Factor Authentication (MFA) is a common compliance issue businesses are scrambling to fix. Not adhering to such regulations not only risks security but can also lead to legal and financial consequences. Failure to implement it can leave a business vulnerable to data breaches and non-compliance penalties.
Navigating company-wide IT compliance demands a more thorough understanding than one-off contractors can offer.
6. What is shadow IT and why is it so risky?
Shadow IT is risky because it involves using systems and solutions that an IT department has not approved or is not aware of.
For instance, when employees don’t get permission to use anything from their own email or cloud storage to personal messaging apps and other software solutions used for work purposes without IT department approval. IBM reports nearly 7 in 10 organizations are compromised by shadow IT, highlighting the widespread scope of the issue.
Managed IT partners can mitigate these risks by ensuring all IT resources align with organizational standards. This approach reduces the need for unauthorized tools in the first place.
7. Budget mismanagement
Mismanagement of IT budgets can have several adverse effects on a business, including the risk of falling behind in technological advancements and cybersecurity.
On the one hand, inadequate budgeting leads to underfunding in key areas such as cybersecurity, exposing the company to data breaches and security risks.
On the other hand, overspending on non-essential technologies due to poor budget management can waste resources and hinder the company’s ability to invest in necessary upgrades or services.
The absence of strategic budget analysis and advisory can affect the company’s ability to quickly adapt to market changes and maintain its competitive edge.
Conclusion
The predominant IT risks for companies are rooted in a lack of sufficient resources and expertise to plan for and resolve IT-related problems effectively. Cybersecurity, human capital, and business continuity challenges significantly impact a company’s operational integrity, reputation, and financial health.
Managed IT services emerge as a vital solution, offering a holistic and scalable approach to these issues. By leveraging structured and comprehensive IT management, businesses can effectively mitigate these risks, steering clear of the pitfalls of ad-hoc or contract-based IT solutions.
Contact Chortek’s managed IT professionals to learn more about transforming your approach to IT.
