For most small and many midsize businesses, it makes more sense to contract with a service provider for information technology requirements than to build in-house teams and infrastructure themselves. When these services and applications are provided as needed through the cloud, they’re known as managed IT services.
Such services often include round-the-clock system monitoring, proactive maintenance and help-desk support to avoid downtime and get you back up and running quickly if things go awry. Managed IT service providers, known as MSPs, reduce the load on a client’s IT team by taking charge of their day-to-day IT operations. This frees the company’s internal team to develop new applications and services that can increase productivity and drive future growth.
MSPs have a significant pool of resources at their disposal, so the quality and timeliness of the support they provide is generally far better than what most internal IT teams can muster.
Types of Managed IT Services
Some examples of managed IT services include remote network monitoring and management, server maintenance, cloud-based data storage, and – most critically – management and support for many of the key software applications on which the client’s business depends.
These applications range from email, collaboration, and video conferencing tools to comprehensive enterprise resource planning (ERP) and customer relationship management (CRM) applications that clients use to schedule production, plan sales and marketing campaigns, and support customers. Robust cybersecurity measures are also part of most packages.
WITH MANAGED SERVICES, A COMPANY’S DATA AND APPS ARE HOSTED REMOTELY IN FACILITIES THAT USUALLY ADHERE TO INTERNATIONAL STANDARDS FOR SECURITY AND CONTROL.
Chief benefits of managed IT services
Here’s a more granular look at the chief benefits of using managed IT services for small and midsize businesses:
One-stop shopping
Many cloud-based MSPs provide comprehensive application hosting and support packages, including all requisite infrastructure, performance monitoring, and troubleshooting services, as well as data storage and security.
There’s only one vendor to deal with, so it eliminates finger-pointing when something goes wrong. The service provider’s support team owns the problem and is responsible for fixing it.
Lower costs and smaller capital outlays
Managed IT services remove many financial uncertainties because businesses typically expect to pay the same amount every month. And because they can take advantage of enormous quantities of scale, MSPs generally offer their services for a relatively low monthly cost.
Businesses also need less upfront capital to build out and maintain their IT infrastructure, since MSPs provide most of the hardware and software they need. Capacity can be scaled up or down as business needs change, giving businesses more flexibility and assurance that they’re only using what they need.
More reliable service and better security
With managed services, a company’s data and apps are hosted remotely in facilities that usually adhere to international standards for security and control, meaning cybersecurity threats are less likely to be successful. If an emergency like an electrical outage or fire strikes your office, your data and applications remain secure and accessible, allowing business to continue while the emergency is resolved.
Trained managed IT service professionals do what in-house staff can't
Modern IT environments often require highly specialised skill sets, such as cybersecurity expertise and in-depth knowledge of the latest trends like artificial intelligence, the Internet of things, and big data applications. It’s much easier and cost-effective for businesses to lean on MSPs for these skills than try to recruit and train people in-house.
Fewer concerns about remaining in compliance
Businesses are required to remain in strict compliance with local laws and regulations. This is especially true for certain industries, such as financial services and health care. Failure to do so can result in expensive fines and jeopardise a company’s license to operate. Many MSPs guarantee that your operations remain compliant, taking yet another costly burden off your plate.
In-house IT has more time for value-adding activities
MSPs give internal IT teams more time to add real value to the business, as they’re no longer responsible for the nuts and bolts of day-to-day operations. Technicians and managers can focus on the company's core competencies, developing innovative products and services to boost revenue and stay a step ahead of the competition.
Future-proofed services keep your business on the cutting-edge
MSPs typically guarantee that all software and applications are up to date. They stay on top of the latest IT trends and can work with their clients to take advantage of new technologies as they become available. If it’s important that your business remains on the cutting edge, working with an MSP is generally much cheaper and more practical than attempting to maintain current technologies yourself.
Disadvantages of managed IT services
While typically outweighed by benefits to cost, speed, and efficiency, there are a few downsides of managed IT services that are worth considering. These include:
Not all MSPs are created equally
When you contract with an MSP, you’re putting it in charge of your business’s most important systems and you’ll be relying on them for business-critical functions. Make sure you thoroughly vet any potential provider, insisting on multiple references and ensuring that your contract includes the appropriate legal and financial protections.
You must surrender some control
Because you are relying on a third party, you may be surrendering a degree of control over your operations. While many managed services providers are flexible in how they operate, making changes and following procedures is often more cumbersome than working with your IT staff. For some companies, this is a relatively minor inconvenience, but for others, it can derail the way they do business.
They are not fit for everyone
Your company may simply be too small or insufficiently automated to realise the full benefits of working with an MSP. You may not be at the point yet where you require many of the services they offer, or the extent to which you can use them is not enough to offset their cost.
If your business continues to grow, this is likely to change. So, even if managed services don’t work for you right now, you should periodically revisit the possibility that they have become a better fit.
Key takeaways on managed IT services
Managed IT services can significantly reduce your technology costs and provide peace of mind that mission-critical systems work and are available whenever you need them. Using an MSP also helps keep your business on technology’s cutting edge by providing access to more skills and freeing up internal IT teams to focus on innovative, value-adding initiatives, allowing your business to stay one step ahead of the competition.