The Many Benefits of Managed IT Services

For most small and many midsize businesses, it makes more sense to contract with a service provider for their information technology needs than to try and meet them themselves. When these services and applications are provided in utility-like fashion through the cloud, they’re known as managed IT services.

Such services often include round-the-clock system monitoring and proactive maintenance, along with troubleshooting and help-desk support to get you back up and running again if things go awry. Managed IT service providers, known as MSPs, reduce the load on a client’s own IT team by taking charge of the client’s 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. Also, because MSPs have far greater resources at their disposal, the quality and timeliness of the support they provide is generally far better than what most internal IT teams are able to muster.

Types of Managed IT Services

Some examples of managed IT services include remote monitoring and management of the client’s network, 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 can range from email, collaboration tools, and video conferencing, to the full suite of enterprise resource planning (ERP) and customer relationship management (CRM) applications that the client uses 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 application hosting and support, including all the requisite infrastructure, performance monitoring, and troubleshooting, as part of their managed IT services package. Data storage and security are also typically included. This is convenient and efficient for the client, since there’s only one vendor to deal with, and it eliminates the potential for finger-pointing when something goes wrong. There are no blame games to play when trouble strikes; 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, since a client can generally expect to pay the same amount month after month. And because they can take advantage of enormous quantities of scale, MSPs generally offer their services for less than it would cost other companies to provide them for themselves. Clients should also need less capital to build out and maintain their IT infrastructure, since the MSP should be providing much of the hardware and software they need. Growing pains can be minimized, since the service provider can dial up additional capacity  as needed – and dial it down just as easily should business decline or when the client’s busy season comes to an end.

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. These protections can afford peace of mind. Cybersecurity threats are less likely to be successful, and even if an electrical outage, fire, or natural disaster strikes your office, your data remains secure and applications like email can still be accessed. This allows the business to continue operating while the emergency is resolved.

Trained managed IT service professionals do what in-house staff can't

Modern IT environments often require highly specialized skill sets, such as cybersecurity expertise and in-depth knowledge of the latest AI software. Recruiting and training personnel with these all these skills can be daunting. A much easier and less costly alternative is to rely on an MSP to provide the expertise you need.

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 jeopardize a company’s license to operate. Many MSPs can guarantee that your operations may remain in compliance, taking yet another costly burden off of your plate.

In-house IT is freed to add more business value 

No longer responsible for the nuts and bolts of day-to-day operations, a company’s internal IT team is free to add real value to the business. 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 can generally guarantee that all of a client’s software is up to date and its applications are the most current version. They also stay on top of the latest IT trends and can work with a client to take advantage of new technologies as they become available. If it’s important that your business remain on the cutting edge, working with an MSP is generally a much cheaper and more practical than attempting to maintain current technologies yourself.

Are There Any Cons to Managed IT Services?

There are a few disadvantages to managed IT services, although these are generally outweighed by the substantial cost savings, increased productivity, and other advantages they provide. Still, the downsides of these services are important to consider and their limitations will doubtlessly matter much more to some businesses than to others: 

Not all MSPs are created equally

When you contract with an MSP, you are putting it in charge of your business’s most important systems. This is akin to handing the provider the keys to your kingdom, and your reliance on the MSP staff’s skill and good conduct will be considerable. Consider vetting any potential provider thoroughly, 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 own operations. While many managed services providers are fairly flexible in how they operate, making changes and following procedures is often more cumbersome than working with your own IT staff. For some companies this is a relatively minor inconvenience, but for others it can derail the way they do business.

They’re not a fit for all businesses

Your company may simply be too small or insufficiently automated to realize the full benefits from 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, however, this can likely 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.

The Bottom Line

Making use of managed IT services can significantly reduce your technology costs and increase your peace of mind by making sure your mission-critical systems work and are available whenever you need them. Using an MSP can also help keep your business on technology’s cutting edge, helping you stay competitive.

A version of this article was originally published January 22, 2020.

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