Managed services have been an integral part of many companies’ IT strategies for many years now. Even so, many Sarasota area SMBs may not be clear on what benefits that managed services can provide or how those services can benefit their company. This article is a review of some of the more basic facts about managed services providers for anyone new to the concept. In this article, we will discuss the IT issues every small business must tackle – and how managed services can solve these issues. One of the more significant problems that managed services can address is that of economies of scale.
- Issue 1:
Employing an in-house IT team can be costly. The pace of technological development can be dizzying. Not only do you need to keep up with all of the changes, but implement them – which is not inexpensive. Managed IT services are generally less costly than hiring, training, and maintaining an in-house IT department. This is especially true given the skill set gap many companies are experiencing. When you consider the totality of the expenses related to hiring a single IT professional – including recruitment, payroll, taxes, benefits, real estate, technology, insurance, overtime, and training – you can begin to understand how outsourcing these activities could save you money. Managed IT service providers (MSPs) offer access to a team of vetted IT specialists with deep experience, allowing you to stay ahead of the skills gap without constantly seeking new employees. A managed services team can immediately increase your productivity in-house, permitting your own IT team to focus on their jobs. MSPs provide 24 x 7 support and network monitoring – a capability that SMBs may not be able to do independently. - Issue 2:
Technology changes rapidly, but companies do not.
It is a sticky dilemma that many organizations struggle with. Advancing technology and innovation is required to stay up to speed and competitive. Still, most SMBs typically do not have the IT expertise needed to track and implement these technologies – not to mention learning how it all works. While making rapid technology changes may be nearly impossible for a small business, the managed services firm was designed to do just that. MSPs provide cutting-edge technologies to their clients as soon as the technology is made available – and offer access to a broad spectrum of resources the company may not be able to pay for out of their own budget. The experience and expertise achieved when working on hundreds of networks is experience that cannot be replicated with dedicated, in-house personnel who wear many hats. - Issue 3:
SMBs typically cannot scale quickly enough to keep pace.
Scalability is vital when maintaining forward momentum and protecting the company’s growth. The lightning-fast speed of change in a corporate environment makes scaling resources up or down to reflect the current environment a requirement. However, it is virtually impossible to scale technology rapidly when IT systems, networks, and communication are onsite. Managed service providers navigate this particular issue efficiently, and they can dispatch required staff and provide extra equipment and resources with little notice. MSPs solve the problem utilizing their economies of scale. Most organizations can’t purchase new technology or hire experts at the speed necessary to stay competitive.
In summary, managed services allow economies of scale that most small businesses cannot achieve otherwise. The business model gives companies the opportunity to share the cost of the knowledge, skills, and technologies they need.
Alliance IT is a Sarasota-based IT services firm providing solutions to small and medium sized organizations.
