According to the most recent MSP mentor report, the largest managed services providers (MSP) increased annual recurring revenue by 25 percent in 2012.
Managed services continue to make inroads into today’s IT departments. $2.547 billion dollars is being spent annually by companies who have moved some—or their entire network infrastructure to a Managed Services Provider. The promise of reducing costs drives many companies to outsource core IT functions. If you are evaluating moving some of your IT to a MSP, here are five reasons to do so.
1. Halt cost overruns – Part of a Managed Services Provider’s job is to proactively support companies and identify opportunities that will save the customer money. Because IT departments are notoriously stretched thin, many projects run simultaneously with a limited number of people available to work on the projects on a day-to-day basis. If stretched beyond the department’s or person’s capabilities, projects become unfinished or mismanaged and incur more overhead costs. A MSP can help keep IT budgets on track.
2. More time to focus on your bottom line – With a MSP, the day-to-day maintenance of your network can be taken care of, giving your IT department time to focus its internal resources on strategic initiatives and company projects. Too often, IT departments get caught up in daily maintenance tasks and are pulled away from project work. They are forced to deal with emergencies which are better handled by a MSP that has the experienced and dedicated staff to not only manage routine tasks, but also handle urgent issues quickly.
3. Ability to upgrade your infrastructure – Anetwork infrastructure is expected to be able to efficiently handle current services, as well as deliver new services that drive corporate growth. A good MSP utilizes state-of-the-art equipment and will have the capability to upgrade your infrastructure as needed. After your initial assessment is complete, the Managed Services Provider will monitor the infrastructure and conduct reviews in order to ensure it is meeting your business objectives.
4. Gain flexibility for expansion – A Managed Services Provider can respond quickly to your changing business technology needs. According to Gartner research, businesses are concerned that their infrastructure and operations (I&O) are not built for speed. Gartner predicts that only 10 percent of organizations have the I&O capacity to change at the rate necessary for business continuity. It is a MSP’s job to not only stay current on new products and services that will help clients, but to also manage the infrastructure needed for expansion.
5. Green initiatives – If your company is tasked with becoming more environmentally responsible, MSPs can provide opportunities for saving money and the environment. Automated desktop power management and the handling of equipment disposal properly are two easy ways a Managed Services Provider can assist, as well as provide energy savings by matching up the best technology and equipment that fits your company’s current and future needs.
So where are managed services headed next? Managed Services Providers are increasingly offering their own cloud services. As organizations discover more ways to utilize cloud computing resources, cloud computing will continue to grow and become a strategic part of a complete managed services offering. Bring Your Own Device (BYOD) services and managed print services are also beginning to be embraced by MSPs, as companies look for solutions to handle increasing mobility demands in the workplace and become more comfortable with outsourcing these needs.
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