Technology and data are two critical resources in modern business. This reliance on business tech has made IT a key performance indicator in nearly every industry. But in order to deliver more business value, business tech has become overly sophisticated and dynamic. Consequently, managing digital systems is now a common pain point for many in-house IT teams. So, more and more tech-heavy organizations are turning to outsourced IT through managed services providers (MSPs).
According to a Clutch report, IT is one of the most commonly outsourced professional business services today. Canada alone spent $15 billion on tech outsourcing in 2021.
Managed IT is an invaluable segment of the IT industry. But what exactly does MSP mean, and what can IT outsourcing do for your business? Let’s go over the basics of managed services and the benefits MSPs present to their clients.
What Is Managed Services?
“Managed services” is an umbrella term referring to the practice of delegating professional business tasks to a third-party contractor or service provider. It describes outsourcing any business task, including administration, accounting, marketing, HR management, supply chain management, customer support, etc. This article will focus on managed IT services, where a third-party service provider (MSP) takes over a company’s IT responsibilities. Actually, this is what most people mean by managed services.
So, rather than managing your IT systems through an internal IT department, a managed services provider does that for you in a fully managed partnership. The MSP can also work alongside your in-house IT team in a co-managed arrangement, whereby both parties share the IT workload.
What Do Managed IT Services Providers Do?
What an MSP can do for your organization will depend on the MSP in question, the nature of your IT infrastructure, and the service-level agreement (SLA). The SLA is an MSP contract describing the agreed MSP responsibilities, service scope, and terms of service delivery. That said, here’s what you can expect from a full-stack managed IT services provider:
- Systems maintenance, servicing, and repair
- Cloud-based data solutions (storage, backup, and disaster recovery)
- Cybersecurity services (network monitoring, user authentication, data security, compliance, etc.)
- Cloud systems management
- IT planning and road mapping
- On-demand break-fix services
- Helpdesk IT support
- Day-to-day IT management
- Tech-related advisory and consultancy
- Systems administration and IT governance
- Support for special projects such as software/web development, deployment, and integration
- Software and SaaS license servicing
- User/employee training on IT safety and usage
Why Use a Managed Services Provider?
There’s a popular saying in business, “Master your strengths, outsource your weaknesses.” Outsourcing IT to an MSP frees you to focus on what you’re good at, i.e. running the business, while letting IT experts handle the technical side of the enterprise. Doing so presents several benefits as opposed to handling IT in-house.
According to Deloitte’s Global Outsourcing Survey 2020, the top reasons for general outsourcing are cost reduction, improved flexibility, faster speed to market, access to unique tools/processes/expertise, and increased business agility.
