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Mid-Market Guide to Outsourcing

Thrive > Mid-Market Guide to Outsourcing

Rethinking IT Outsourcing for the Mid-Market

Mid-market organizations are under increasing pressure to keep up with today’s technology changes, rising cybersecurity threats, and ever-evolving performance expectations. From cloud adoption to compliance mandates, and around-the-clock security demands, internal IT teams are often stretched thin. With limited resources and a growing list of priorities, these organizations face a tough choice: continue patching together solutions in-house, or make a bold move toward strategic IT outsourcing.

Far from being a stopgap or a cost-cutting tactic, IT outsourcing has become a critical strategy for organizations looking to scale efficiently, stay secure, and remain competitive. For the mid-market in particular, outsourcing IT is no longer about offloading help desk support or infrastructure management; it’s about gaining a long-term partner who can help modernize operations, close skills gaps, and create measurable business value. The optimal relationship for any organization looking to outsource their IT must be to deliver high level expertise on Day 1. With time, the relationship should evolve to feel like an extension of their team, not just an outsourced tool. Through constant collaboration and trust, the right outsourced IT partner can build a bond that allows organizations and the partner to operate together in a way that the business can’t tell where their company starts and the outsourced partner begins.

But IT outsourcing only works well when it’s more than a transactional relationship. It requires a true partnership grounded in trust, collaboration, and shared outcomes. The most successful IT outsourcing strategies are integrated into the organization, not bolted on. They align with an organization’s goals, evolve with its changing needs, and prioritize proactive innovation over reactive support.

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Mid-Market Businesses Trust Thrive

“One of the main benefits for me and my relationship working with Thrive is the trust that I have in the company as a whole. I know if I need assistance with something that may seem small to others but is a huge deal to me that they will be there to assist me with it. Trust to me is a major factor in any relationship.”

– Bernadette Flaherty, IT Manager, Erland

The Evolution of Mid-Market IT Needs

Mid-market organizations face a unique set of challenges compared to larger enterprise businesses: IT staff shortages, rising technology costs, and increased complexity across their tech environments. Additionally, there are mounting knowledge gaps for technology staff and employee burnout for businesses that are understaffed and trying to keep up. These companies often don’t have the luxury of large internal teams or specialized departments. At the same time, they don’t want to feel like they’re outsourcing in the traditional sense. Instead, they want a true partner. A partner that feels like an extension of their team. This new model of outsourcing is a strategy-first investment focused on delivering business outcomes, not just technology. It’s about empowering internal IT teams by offloading the right responsibilities and enabling collaboration to drive innovation.

How Does Outsourcing Deliver Business Benefits?

  • Strategic alignment: Outsourcing the right components of IT enables alignment with business goals.
  • Access to broader expertise: Gain access to a wider pool of certified engineers, architects, and advisors.
  • Reduced operational overhead: Eliminate time-consuming day-to-day support and maintenance tasks.
  • Improved agility and scalability: Respond to changing demands quickly without overburdening internal resources.
  • Increased focus on innovation: Allow internal IT teams to prioritize business transformation and strategic projects.

Mid-Market Priorities in 2025

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Focusing IT staff on revenue-generating and industry-specific technology

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Building flexibility into their IT plans

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Preparing for changing regulations and compliance

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Increasing visibility and control over tech investments

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Ensuring a return on investment

The Disconnect in Traditional Outsourcing

Why Companies Hesitate to Outsource

An astonishing 80% of organizations plan on leaving a service provider within the next year because of bad experiences with outsourced IT. The traditional MSP model often involved rigid product sets that didn’t consider the unique business goals and structure of the organization. Instead of listening and tailoring solutions, providers sold predefined offerings, leaving clients with technology they didn’t fully understand or need. Other examples of MSPs that are not a good match are ones that take short cuts to undercut competition, take the loss leader approach, or don’t provide a clear picture on their technical capabilities to win a deal and end up delivering a poor experience to the customer. This led to a product-focused mindset where technology became a cost center, not a strategic enabler. Additionally, the true cost and effort of maintaining an in-house IT team are often underestimated. Many companies believe outsourcing will reduce control or flexibility, when in fact, a collaborative outsourcing approach can enhance both.

Misalignment with Approach

One of the key reasons outsourcing doesn’t work out is a misalignment in responsibility. Some IT leaders still want to accumulate full control over their tech stack, including compliance and security responsibilities. But outsourcing is most effective when there’s clarity about what should remain in-house and what can be delegated. Tools like the Responsibility Matrix help Thrive assess readiness by mapping out ownership areas. Defining responsibility from the start is critical. Think of your IT infrastructure as a lawn. Buying a lawn mower does not give you beautiful, landscaped grass. Rather, you have bought the responsibility to maintain your lawn (as well as the lawn mower). However, when you buy a lawn service, you have outsourced the tooling and have purchased a finished product. Outsourcing specific IT tasks is a very similar evaluation. Having a collaborative relationship with your vendor is critical. There are certain technologies and responsibilities which should remain internal, especially things which help drive your strategic priorities. However, your teams may not be able to commit to every maintenance task or the technical debt it requires, and it makes sense to outsource those responsibilities to streamline the demands on your teams.

The Responsibility Matrix

Use this framework to determine:

  • Who owns which responsibilities?
  • Who is responsible for compliance?
  • What is the risk of keeping responsibilities within the organization?
  • What is the right balance between what would be more effective to do internally versus what can be done externally?
  • What areas do you want your teams to be focused on and what areas should a partner be focused on?
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The True Total Cost of Ownership

Many organizations assess the cost of technology by looking at the initial price, cost of maintenance, or training and staffing requirements. However, there is a hidden cost of ownership: the accumulation of responsibility. Technical debt represents a commitment to own and execute on those organizational tasks – and that could ultimately distract IT teams from more strategic projects. Outsourcing with the right partner provides stability, predictable costs, and access to the skills you need when you need them.

Point Solution Focus

Another pitfall organizations face is the tendency to start with a point solution when something fails. Companies may rush to compare technology features instead of asking the broader question: “What is the best strategy to solve this problem long-term?” Point solutions rarely scale and often lead to more fragmented systems.

A New Approach to IT Partnerships

Strategic Collaboration Over a One-Size-Fits-All Solution

The most successful mid-market outsourcing relationships come from leaders who are open to collaboration and strategy. Constant communication ensures alignment and builds trust, allowing IT teams to redirect their energy from maintenance to strategic initiatives. Additionally, having mutual trust can drive candid conversations about real initiatives and risks, allowing for the right stakeholder involvement to drive the best business outcome. This model acknowledges that technology is not static. It evolves with your business, your industry, and your market demands. A strategic IT partner is one that adapts with you. When IT becomes a partner in business performance, rather than just a service desk, real innovation happens.

Thrive’s Collaborative Approach Includes:

  • Frequent strategy and alignment sessions
  • Co-managed solutions tailored to internal team capabilities
  • Outcome-based service delivery models
  • Dedicated client success and technical advisory teams
  • Proactive communications and planning

Outsourcing Readiness: Is Your Business Prepared?

Here are signs that it might be time to consider outsourcing:

  • Your internal IT team is overwhelmed and can’t prioritize strategic projects.
  • You’re relying on point solutions that haven’t delivered sustainable results.
  • New compliance requirements (e.g., CMMC) are too complex to handle in-house.
  • You need access to a broader set of technical skills.
  • You’ve experienced failed vendor relationships due to poor communication or mismatched expectations.

Use the Responsibility Matrix to identify areas of your IT where outsourcing makes the most strategic sense. Understand your current maturity level as an IT organization and decide what balance of control and partnership works for your business.

CMMC and the Changing Compliance Landscape

Mid-market companies in manufacturing, defense, and government-adjacent sectors face increasing pressure to comply with frameworks like CMMC. These requirements are complex, evolving, and high-stakes. Thrive helps organizations interpret, implement, and maintain compliance with changing standards, reducing risk and operational overhead.

Why Thrive is Different

More Than Just a Service Provider—A True Partner

At Thrive, we don’t believe in cookie-cutter packages. We start by understanding your business goals, initiatives, and desired outcomes. Then, we work with you to tailor a solution that supports those objectives with the right mix of services and support. When we co-create solutions, whether that includes infrastructure modernization, end-user support, compliance enablement, or strategic IT consulting, we become a trusted extension of your team. Thrive is often chosen by technical leaders because of our collaborative approach. We balance what belongs naturally to internal teams and what we can support effectively.

Strategic Outcomes vs. Just IT Support

We focus on helping businesses move IT from a cost center to a strategic function. Our clients are companies looking for a true working partner, not just someone to keep the lights on. The ROI of outsourcing increases significantly when it addresses both the skills gap and the business impact.

Thrive’s Guiding Philosophy

  • Don’t focus on products, build relationships
  • Collaborate often
  • Start with outcomes
  • Stay flexible as needs change

Our Clients’ Experience

  • Improved business continuity and resilience
  • Enhanced visibility and reporting across the IT stack
  • Faster go-to-market timelines for internal initiatives
  • Reduced downtime and risk exposure
  • Greater internal satisfaction with IT support

Case Study: How A Capital Management Firm Partnered with Thrive

A boutique capital advisory firm faced growing challenges in maintaining a secure and scalable IT infrastructure. Their internal team was resource constrained, and previous outsourced IT vendors had failed to meet their strategic needs. Partnering with Thrive, the firm moved from a reactive support model to a strategic IT plan that aligned with their business goals. Thrive became an extension of their team, providing proactive guidance, modernized infrastructure, and expert support that freed the firm’s internal team to focus on business growth.

The Capital Management Firm’s Story—At a Glance

  • Industry: Financial Services
  • Key Challenge: Inefficient legacy systems, lack of strategic IT direction
  • Thrive Services: Strategic advisory, infrastructure modernization, managed support
  • Result: 30% increase in IT efficiency, improved uptime, happier end users

The Results

  • Faster response times and resolution of end-user issues
  • Increased client satisfaction due to uptime and performance improvements
  • Better internal alignment between IT and business teams
  • A trusted relationship with Thrive that grows with their business

Thrive With Us

Ready to rethink your IT strategy? Let’s work together to future-proof your business with a smarter, more strategic approach to IT outsourcing.