The managed IT service provider industry is consistently evolving and growing. In fact, according to a market analysis report by Grand View Research, the global managed services market is expected to register a CAGR of 11.7% from 2019 to 2025.
This steady growth is fueled by organizations, specifically small-to-midsize businesses, turning to managed service providers as their main source of IT knowledge and expertise. SMBs and midmarket organizations today are facing complex business challenges – made even more difficult by the COVID-19 pandemic – including hiring the right talent, reduced capital budgets, investing in the appropriate technology, and ever-growing cybersecurity concerns.
Using Managed Services to Support Your Business
There are several ways in which a managed service provider can benefit an organization, and this blog will expand on the top advantages business leaders should consider.
Enhance Security Measures
Cybersecurity concerns amongst SMBs are continuously mounting as attackers constantly find new ways to access private networks where they intercept sensitive data and proprietary company information.
A 2019 study published by the Ponemon Institute revealed that 66 percent of SMBs worldwide have reported a cyberattack within the past 12 months, with 76 percent of survey respondents based in the United States.
Primary causes of a data breach within a business’s network can be attributed to phishing attempts, ransomware attacks, security vulnerabilities, insider threats, and even physical theft. As attackers – and the nature of their attacks – become more sophisticated, businesses must have the proper security measures in place.
Many managed service providers also have a security component to their offerings, deeming them managed security service providers (MSSPs). MSSPs provide clients with solutions such as managed detection and response and security operations services to simplify processes, ease the burden of ongoing monitoring and maintenance, meet compliance protocols, ensure effective security tools and technologies are in place and more.
Increase Cost Efficiencies
Midmarket organizations are regularly shifting capital around to accommodate unexpected expenses and meet the needs of the business. This can lead to leadership stressing to find the budget to strategically fund critical business segments like that of IT.
Managed service providers can reduce expenses related to typical IT budget line items, including network infrastructure, hardware, and maintenance costs. MSPs can provide a package of services based on an organization’s needs, creating more predictable IT spend.
Oftentimes, leveraging an MSP’s services is significantly less expensive than staffing and maintaining an entire in-house IT department. In addition to salaries and benefits, there are also costs associated with employee education and keeping IT resources up-to-date on the latest technologies and methodologies.
Hands-Off IT Management
As a business continues to grow, employees’ roles may expand to accommodate new responsibilities within the IT department. As their scope of work increases, it can be difficult to maintain high levels of efficiency within their original role.
For example, if the service desk is receiving an unusually high volume of tickets, a level 3 resource may need to spend time resolving level 1 tickets to ensure imminent customer needs are being met and downtime is avoided. Because of this, the level 3 employee spends less time focusing on their work, potentially causing them to fall behind and miss deadlines.
If the company had been smartsourcing its level 1 support to an MSP, upper-level resources would be freed up to focus on core business initiatives and revenue-generating activities that drive the organization forward.
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Bridge the Staffing Gap
With technology playing an increasingly important role in day-to-day operations, it is imperative businesses have the necessary IT resources and skillsets in place; however, this is easier said than done.
Lack of qualified talent for niche roles and financial constraints are just a couple of the challenges plaguing SMBs and midmarkets when it comes to IT staffing. Rather than management teams spending time sorting through resumes and conducting interviews, businesses can turn to an IT staffing provider for assistance.
Some MSPs include IT staffing under their umbrella of service offerings. MSPs and MSSPs will have a pool of candidates with roles ranging from Security Engineer to SharePoint Developer to Chief Information Officer. With these resources at hand, resources can be easily sourced and placed for any IT role and structure the terms based on the business’s need, whether it’s a contract, contract-to-hire, or full-time hire.
Learn more about the benefits of working with an IT staffing provider.
Access to Advanced Technologies
Technology is increasing in sophistication and complexity every day, and it can be difficult – and expensive – for an organization’s IT infrastructure to reflect this.
When partnering with an MSP, businesses have the option to take advantage of the provider’s ITSM toolsets to ensure uptime and increase productivity and profitability for the company. This allows a business to invest significantly less in things like ticketing systems, asset tracking devices, reporting mechanisms, and more.
In a cloud scenario, businesses can leverage the MSP’s cloud computing servers, eliminating expenditures related to running on-premises internal servers. This also means maintenance services are provided by the MSP, allowing businesses to benefit from consistent software updates and other upgrades managed by the provider.
As MSPs are the authority in technology, they will help their clients understand the evolving landscape and make recommendations on necessary technologies and solutions – such as backup and disaster recovery and network security – to safeguard critical assets and provide long-term success.
Scalable & Future-Proof IT Solution
Scalability is a vital component of any successful modern-day IT solution, and the best way for businesses to achieve this is by adopting cloud solutions.
According to Gartner, worldwide end-user spending on public cloud services is forecast to grow 18.4% in 2021 to total $304.9 billion, up from $257.5 billion in 2020.
When data is physically stored, it can be difficult to scale the environment to accommodate growth and meet business demands. With the cloud, there are virtually no limitations on how much data can be stored, allowing organizations to support the changing needs of their business with no downtime or interruption to normal business operations. This is especially helpful for organizations whose businesses may be growing at a rapid rate.
Cloud-based applications like virtual desktops and video conferencing platforms have risen in popularity due to remote working conditions, and are also a smart investment for companies looking to scale their business.
Interested in Learning More?
- Why Your Business Needs Network Security Now
- 3 Major Benefits of a Managed IT Solution
- 5 Steps for an Effective Backup & Disaster Recovery Plan
- Top 11 Benefits of Cloud Managed Services
Considering Outsourcing IT Services?
In summation, MSPs can serve as a business’s all-in-one IT partner or act as an extension of their in-house teams to increase organizational efficiency. If you are a business leader looking for ways to improve your IT solution, contacting an MSP is a great place to start.
Buchanan Technologies has been providing mid-tier and enterprise-level clients across North America with innovative IT services and customized solutions since 1988, including helpdesk services, remote IT support, managed IT solutions, and more. Contact us for more information and to receive a free, no-obligation quote for your IT needs.
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