How IT Outsourcing Helps Your Manufacturing Company Reduce Downtime and Costs

IT outsourcing can help a manufacturing company reduce downtime, clarify responsibilities for systems, and gain access to expertise that would be difficult to expect from a single person. You’ll see the greatest benefit when an external team is responsible for a clearly defined scope, operates according to established response times, and understands the importance of each system to production.

Our goal is to help you determine whether this model makes sense for your business, what should be included in the contract, and how to compare providers without basing your decision solely on the subscription price.

IT outsourcing for businesses involves transferring some or all IT tasks to an external team. The scope may include, among other things:

This isn’t a service you call only when your computer stops working. Ongoing IT support should also help reduce the number of outages, streamline access to systems, and give you a clear picture of the risks.

In a manufacturing facility, it is worth distinguishing between three areas:

A vendor that provides good support for laptops and user accounts does not necessarily need to have the expertise to work with industrial automation. The scope of responsibility should be clearly defined.

Each of these areas can affect plant operations. When the network, the ERP system, or access to machinery fails, production, warehousing, and logistics are quickly impacted.

Below you’ll find the key benefits of using IT outsourcing in your manufacturing operations.

In manufacturing, a system failure rarely results in nothing more than the cost of repairs. A shutdown can mean idle operator time, reduced output, shipping delays, quality issues, and additional work required to restart the process.

Well-organized outsourcing reduces the time between identifying a problem and taking action. Monitoring, documentation, a defined escalation process, and access to several specialists all contribute to this.

According to an ENISA report covering publicly reported incidents from July 2023 to June 2024, the manufacturing sector accounted for 17% of the ransomware incidents included in the analysis. This was the highest share among the sectors identified. The data pertains to the European market and does not indicate the risk to a specific facility, but it confirms that the continuity of production systems requires constant monitoring.

It’s rare for a single person to be equally knowledgeable about networks, servers, backups, the cloud, security, end devices, and industrial systems. An external team gives you access to the expertise you lack when you need it.

This does not mean that outsourcing will always be cheaper, because the price depends on the scope, the number of users, support hours, the required response time, and the level of responsibility. When comparing models, it’s worth calculating the total cost:

The best source of data for such a calculation is the management accounting department, which should take into account lost profit margins, unused labor hours, and the cost of restarting the process. General averages from random reports cannot replace data from your own facility.

You can expect certain risks when knowledge of the environment resides solely in the mind of a single administrator. Vacation, sick leave, or resignation can then make even a simple configuration change extremely difficult.

An external team mitigates this dependency, provided it maintains up-to-date documentation that includes, among other things:

Before signing the contract, check how many of the provider’s employees are familiar with your environment, who will handle support requests when your assigned support representative is unavailable, and whether you will receive complete documentation upon termination of the contract. Interchangeability is only valuable when knowledge about the systems has been documented and is accessible to more than one person.

Monitoring can detect a disk that is running out of space, a backup error, a server that is not responding, an expiring certificate, or a service overload.

Just having the tool isn’t enough; you still need to determine:

For a facility operating on two or three shifts, a help desk that is open only from 8:00 a.m. to 4:00 p.m. may not meet your needs.

A significant number of malfunctions can be diagnosed and resolved without having to visit the facility. Remote access facilitates quick assistance, but it must be monitored, especially when it involves the production network.

CISA notes that remote management tools are commonly used by IT service providers but can also be exploited by attackers. In industrial environments, it is therefore recommended, among other measures, to control accounts, restrict access from the Internet, and monitor connections from third-party providers.

The contract or procedures should include:

The general term “comprehensive IT support” won’t tell you much when an incident occurs. It’s your responsibility to determine in advance who will restore the server, contact the ERP vendor, decide whether to isolate part of the network, and notify management.

NIST recommends defining roles between the organization and its vendors, incorporating security requirements into contracts, and including external partners in response and recovery plans.

The more precise the division of responsibilities, the less time you’ll waste trying to determine who’s responsible when a failure occurs.

The monthly report should include the following:

This data helps you determine whether the costs are due to worn-out equipment, a poor network, incorrect configuration, or a lack of user knowledge. Without reporting, management will mainly see the invoice amount, making it harder to assess the quality of service and the impact of IT activities on the facility’s operations.

You can resolve many issues remotely, but damage to a switch, server, cabling, or equipment on the shop floor may require a specialist to be on site.

When choosing an IT outsourcing company in Katowice, be sure to check:

A local office does not automatically guarantee a quick response, as this is determined by a specific provision in the contract.

Answer yes or no to the following:

No single response identifies an area that needs to be addressed, and a larger number of gaps may warrant an audit or a change in the service model.

Full outsourcing is a good fit for companies that do not have their own IT department and want to outsource day-to-day operations to an external team.

The hybrid model is suitable for organizations where the in-house administrator has a thorough understanding of the processes and systems, while an external partner handles security, monitoring, backup, or more complex tasks.

Outsourcing IT staff is a good solution when you need specialized expertise for a project or to temporarily strengthen your team. The responsibility for organizing that person’s work typically falls more on the client than it does in a managed service.

Before selecting a vendor, conduct an audit covering devices, the network, systems, the OT environment, backups, privileged accounts, licenses, and dependencies on machine manufacturers.

If a service provider gains access to personal data, the rules governing its processing must also be established. Article 28 of the GDPR requires the conclusion of a contract or other binding agreement setting forth the terms of the data processing.

The best offer isn’t necessarily the cheapest one. Its purpose is to clearly show you what the provider is responsible for, how quickly it responds, and how it minimizes the risk of downtime.

Start your discussion with the IT company by providing a list of critical systems and the cost of their downtime. Only then should you evaluate the scope and price of the service.

FAQ

Is IT outsourcing a good investment for a small manufacturing company?

This can be cost-effective when a company needs a few specialized roles, temporary replacements, and ongoing monitoring, but won’t utilize a full-time team. The decision should be based on the total annual cost and the value of potential downtime.

Can an outside company manage production systems?

Yes, provided that the contract specifies the particular systems, the scope of access, and the responsibilities, and the provider has the appropriate expertise. Experience with office computers does not automatically imply knowledge of PLCs, SCADA, CNC, or OT networks.

What should an SLA include?

The SLA should specify failure classes, response times, hours of availability, escalation procedures, reporting channels, reporting requirements, and situations excluded from the agreement.

Does the supplier assume full responsibility for security?

No. The company continues to define requirements, approve access, and oversee the vendor. The scope of operational responsibility should be clearly specified in the contract.