The definition of Managed Services is the proactive management of an IT (Information Technology) asset or object, by a third party typically known as a MSP, on behalf of a customer. The operative distinction that sets apart a MSP is the proactive delivery of their service, as compared to reactive IT services, which have been around for decades. [i]
There are many reasons for and against businesses small and large adopting managed services as part of their IT strategy.
Some have a belief that the approach is all or nothing and therefore shy away from considering options, but just like leasing a car or paying monthly for a TV service you don’t have to put all your eggs into one basket.
Over the years, BLUE Profile has been challenged by Executives and IT Departments who consider managed services to be a threat to a department or a person’s role, versus a service that can add value and provide additional benefits to the overall department and business.
A recent CompTIA survey showed that Six in 10 customers describe their managed services engagement as a collaborative arrangement with their internal IT department.[ii]
In 2011, a further CompTIA[iii] survey showed that 46% of firms have trimmed their annual IT expenditures by 25% or more as a result of their shift to managed services, including 13% that have slashed annual IT expenditures by 50% or more and an additional 50% of organizations have saved up to 24 percent in IT costs annually.
While costs savings are the top factor in deciding to turn to managed services, more than half of respondents in the CompTIA survey said a major reason they are contracting with an MSP is to free up their internal IT staff to work on projects that fall into the business’ core competencies – in other words, revenue-generating activities.
Some of the core advantages of working with a Managed Service Provider include;
A proactive service
Especially today as more and more technology demands are place on the business and ever increasing risks for security, compliance and governance.
Long term strategic vision
Versus a short-term sale can be provided by Managed Services organisations. Their business has been founded on working strategically with customers over a much longer period of time.
For decades IT has created additional complexity and with continuing advances and changes in the industry and technology, MSPs offer an advantage to keep up to date with the latest trends and solutions and ensure that your solution is fit for purpose with little disruption.
Cost Control / Reduction
With IT budgets decreasing, unstable economics (i.e. Brexit) and having to “do more with less” there is a growing desire and need to work on a more operating expense model versus larger capital expenditures. No matter what size business; predictability and forecasting are key to future growth and maintenance.
Increase Efficiency & Agility
Not just of staff, but the business itself. Process and People cost business more money that ever before. Systems downtime or sluggish solutions can impede many activities and hinder the working day. What is the cost to your business for every 1hour of lost productivity?
What is the cost to your business if it lost its data? It is estimated that 60% of companies that lose their data will shut down within 6 months of the disaster or according to a Gartner report in 2010 43% of companies were immediately put out of business by a “major loss” of computer records, and another 51% permanently closed their doors within two years.
Increased Security and Reduced Risk
Working with a company to secure your business provides a key advantage versus the do-it-yourself model! MSPs offering security services have taken time to review the market, test products and find what is fit for purpose and the right solution saving you time and effort
Managed Service Providers (MSPs) are rapidly becoming the gold standard for outsourcing the day-to-day management responsibilities and operations of corporations worldwide, so the IT staff can focus on R&D, new products and better customer service.[iv]
Naturally, there are many reasons to consider managed services especially if you have a small IT department or you’d rather focus the team away from “keeping the lights on” towards Innovation and Future Projects.
Even if you prefer to manage and maintain internally, it’s always worth speaking to a MSP about your internal projects and solutions. Why, You may ask? The simple reason, is that most MSPs can save you time and effort as they have already gone through product and technology reviews, market analysis and implementation pains and learnings.
About BLUE Profile
Founded in 1997, BLUE Profile is an independent, leading IT Support, Consulting, Security & Infrastructure Managed Service Provider working with customers to Transform, Secure, Maintain and Simplify their IT infrastructures.
As a Trusted Advisor, we help reduce risk, complexity and cost whilst delivering increased efficiency and agility across the business.
Contact BLUE Profile to learn more today
[i] Charles Weaver. “Definition of Managed Services” http://mspalliance.com/definition-of-managed-services/
[ii] Steven Ostrowski. “CUSTOMER AWARENESS AND ADOPTION OF MANAGED SERVICES TRENDING UPWARD, NEW COMPTIA RESEARCH REVEALS” http://www.comptia.org/about-us/newsroom/press-releases/2015/06/01/customer-awareness-and-adoption-of-managed-services-trending-upward-new-comptia-research-reveals
[iii] Steven Ostrowski. “MANAGED IT SERVICES USERS BENEFITTING FROM REAL COST SAVINGS, NEW COMPTIA STUDY FINDS” http://www.comptia.org/about-us/newsroom/press-releases/11-10-25/managed_it_services_users_benefitting_from_real_cost_savings_new_comptia_study_finds.aspx
[iv] JD Sartain. “How an MSP Can Help Your Company Get Its Groove Back” http://www.cio.com/article/2875596/managed-service-providers/how-an-msp-can-help-your-company-get-its-groove-back.html