The Benefits of Managed Services

At the beginning of the information technology era, many companies opted to house their IT capabilities internally. This made sense at the time, as the internet was still in its infancy and we were only just beginning to understand its capabilities.

But by the last 1990s, there was critical demand for IT talent across industries. It no longer made sense for smaller companies to maintain internal IT departments. To fill this need, managed service providers (MSPs) emerged alongside other digital-first businesses.

Today, it isn’t just small businesses that depend on MSPs. Many of the world’s governments and even the largest international corporations outsource at least part of their information technology needs to outside providers. From cybersecurity to network management and cloud computing, MSPs have become versatile partners in the rapidly evolving technology space.

If you’re considering outsourcing or augmenting your IT function, here’s what you need to know about the benefits of partnering with a managed service provider.

What Are Managed Services?

Managed services typically fall into the IT category, but not necessarily. Managed services represent a broad spectrum of outsourced business functions. Many companies choose to outsource some part of their business, such as bookkeeping, payroll, marketing, or even HR—all of these can be managed services.

The managed services market has shown no signs of slowing down, as companies’ need for IT expertise continues to grow. The global managed services market was valued at $155.91 billion in 2017; it’s expected to reach $296.38 billion by 2023. Managed services have become an important consideration for companies’ short-term goals, but more and more organizations are relying on long-term partnerships with MSPs to maintain their growth.

According to MarketWatch, “There has been a shift in focus toward managed services and their applications for both short- and long-term strategic decisions. As managed services enable a company to access enhanced applications and services that could not be possible in-house, it helps them to target their core strategic area, while outsourcing the rest of the tasks to the service providers who possess the operational expertise in that domain.”

Here are just a few benefits you can expect when partnering with a managed service provider.

Fast Access to Technology Expertise

Hiring and training technology experts are costly endeavors. It also takes a significant amount of time and resources. In the time it takes to hire and train a team of technology experts internally, an organization could have already solidified its relationship with a managed service provider and begun generating value from it.

It’s also becoming more difficult to find technology talent. This is especially true in the cybersecurity industry, which is suffering from a skills shortage. Despite the high demand, the talent to meet it hasn’t materialized—70% of cybersecurity professionals claim their organization is impacted by the cybersecurity skills shortage.

This is perhaps the core benefit of working with an MSP. Instead of competing with other companies for talent, you can simply sign a contract with an MSP and get fast access to technical expertise when you need it.

Technology is also dynamic by nature, and it can be difficult to keep your internal employees trained and prepared for what comes next. MSPs make it their business to understand burgeoning technology trends, as well as new threats in the cybersecurity landscape. Instead of trying to keep your employees up to date by training them or sending them off to conferences, your IT partners can provide you with the latest updates.

Lower Costs

Hiring employees internally is an important part of maintaining a business. New employees often come with new ideas, and as they gain expertise, they can eventually become leaders within the organization.

But hiring, training, and maintaining an internal IT staff has become prohibitively expensive. Furthermore, the larger your organization becomes, the more staff you’ll need to maintain your networks and keep them secure.

MSPs are a cost-effective way to get the tech skills you need whenever you need them. If you outsource your IT function entirely, you won’t need to cover labor and benefits costs. You’ll only need to pay a regular fee to your managed service provider.

Scalable Technology Capabilities

Most MSPs also provide scalable services. If your organization is ready to grow, you can simply scale up the resources you obtain from your IT partner to meet demands. This can take the form of fractional IT staff, but it can also take the form of infrastructure.

Often, MSPs partner with a network of other technology providers to ensure their clients have access to the latest capabilities. If you’re interested in automating your processes or moving some of your functionality to the cloud, partner with an MSP that has connections with cloud service providers. If you’re interested in services like colocation, look for an MSP that has partnerships with data centers across the world.

More Opportunities to Focus on Core Objectives

Finally, working with an MSP allows your organization to focus on its core objectives. As your business grows, you won’t need to worry about your internal team becoming overwhelmed by technology demands. You won’t have to assign additional IT responsibilities to your employees, either.

Instead, these tasks can be handled by your MSP while you and your staff focus on pursuing strategic objectives. Simply approach your MSP with your objectives and your partner will provide solutions based on the services you require.

Whether you just need a partner to help you with your compliance needs or you’re looking for experts to assist you in your digital transformation, MSPs can provide you with a strategic partnership that supports your long-term goals.