flevyblog

Flevy Blog is an online business magazine covering Business Strategies, Business Theories, & Business Stories.
MANAGEMENT & LEADERSHIP STRATEGY, MARKETING, SALES OPERATIONS & SUPPLY CHAIN ORGANIZATION & CHANGE IT/MIS Other

Is a Managed Service Provider a Good Fit for Your Business?

Editor's Note: Take a look at our featured best practice, IT Strategy (30-slide PowerPoint presentation). The key drivers of Information Technology (IT) or Management Information Systems (MIS) value are an organization's IT mindset and its ability to execute. Today’s best practices show that IT value can be maximized when enterprise IT investments are aligned with business goals and IT execution is [read more]

* * * *

An increasing number of businesses are looking to outsource their IT support needs to managed service providers – dedicated IT support services who specialise in providing tech support for businesses who can’t – or don’t want to – manage their IT in-house.

Like most business decisions, there’s no right or wrong answer in terms of whether a managed service provider is going to be ideal for your business – but there are a few questions that could lead you toward the right answer for you.

Here, we’ve listed a handful of IT considerations businesses have, and provided a few details about how a managed service provider could help you tackle the issue at hand – and how they might compare to the in-house IT team alternative…

Can you find the right staff?

Finding the right core staff for your business is often difficult – and that’s with the experience you already have in your chosen sector.

Recruitment becomes a double-problem when you’re looking to take on specialists that lie outside your realm of experience – and, for most people, IT is firmly out of their comfort zone. What should you be looking for from network engineers? Does an IT manager need the same skills as other managers? What kind of experience should your candidates be displaying? How much should you be paying for an in-house team?

The questions are endless – and you stand to make mistakes before you get it right. If you want a short-cut to a team that will deliver exactly what you’re looking for, a managed service provider is a great alternative to rolling up your sleeves and trying to recruit a team. A managed provider has an experienced team already in place – and they’ve been put there by someone who knows exactly what’s needed to deliver an outstanding service for your business.

How do you know you’re getting the right service for you?

Of course, taking on a contractor or third party company to deliver a service for you always represents something of a risk – but with an IT network provider, that’s enormously reduced – and it’s all down to the way they agree their services.

Your business requirements are unlike any other company’s – so there’s no off-the-shelf package or price that’s going to immediately meet your needs. Instead, working with a managed service provider will involve sitting down and talking about exactly what you do – and what you need to support those processes and systems.

When you have a mutual understanding – your service provider will commit to the support they can provide by putting together an ‘SLA’ – or ‘Service Level Agreement’. This document will, essentially, be a contract that outlines what they’ll do for you – and what you’ll pay in return.

If you’ve got systems that just can’t fail – or sites that must be connected at all times; this is the place you’ll outline exactly what you expect. These are just examples – and a good managed service provider will help you work out what you needs are – but when they’re committed to an agreement – that’s exactly what you’ll get, meaning you can rest easy knowing your IT systems are fully looked after.

Can you predict your IT costs?

The service level agreement we’ve just covered doesn’t just cover what you’ll get from the managed service provider – it outlines they cost they’ll expect from you – and this is both important and reassuring for businesses.

When you’ve got an in-house team, there’s every chance you’re going to come up against problems that require some outside support. Inevitably, outside support comes with a price tag – so your in-house team are somewhat limited by their current level of experience – and your budget is far from protected.

With a managed service provider, you’ve got a team who have made a commitment to keep your systems running in the way you need them to. If that means they need to commit extra resources or seek outside help, that’s their issue to deal with – and won’t impact your monthly payment.

As you’re already undoubtedly aware, a predictable cashflow is vital when you’re running a small to medium sized business – so this kind of predictable cost is a big feather in the cap of the managed service providers.

Do you handle IT issues proactively – or reactively?

The increasing popularity of managed service providers owes a lot to huge steps forward in cloud-computing and an increased business interest in software-defined wide area networks (SD WAN).

Both of these technological developments allow managed service providers to configure, monitor, maintain and manage your network remotely; often predicting issues and making changes before they’re needed.

This represents a significant benefit for managed service providers when compared to in-house teams. Quite simply, an in-house team is unlikely to be able watch your IT network around the clock – at least, without significant staffing spend on your behalf. A managed service provider, however, is going to be able to keep virtual hands on your network around the clock – and that can prevent issues before they happen.

If you’d prefer your Monday morning to involve an email from your service provider telling you about an issue they’ve helped you avoid – instead of an email from IT saying your systems are down, the finding a managed network provider who’s got the means to stay one step ahead of problems could be an enormous investment in your company.

What’s right for you?

As we stated at the very beginning – there’s no right or wrong answer as to whether a managed service provider is going to be right for your company. Some companies prefer to keep IT in-house – and that’s fine – although it is almost always the more costly option.

If you’re not sure about whether a managed provider could meet your needs – or you’d simply like to get an idea of price to hold up next to recruitment projections, then seeking some recommendations is a good next step. Look for a provider who deals with companies of your size – and, possibly, companies in your sector. Most service providers will be delighted to meet with you entirely free of charge – and discuss whether or not your companies would be a be a good working fit moving forward…

170-slide PowerPoint presentation
This presentation is a collection of PowerPoint diagrams and templates used to convey 30 different IT-related frameworks, models, standards and methodologies. The list is compiled based on recent trends in agile methodologies, cybersecurity, project management, and risk management, reflecting [read more]

Do You Want to Implement Business Best Practices?

You can download in-depth presentations on MIS and 100s of management topics from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives.

For even more best practices available on Flevy, have a look at our top 100 lists:

These best practices are of the same as those leveraged by top-tier management consulting firms, like McKinsey, BCG, Bain, and Accenture. Improve the growth and efficiency of your organization by utilizing these best practice frameworks, templates, and tools. Most were developed by seasoned executives and consultants with over 20+ years of experience.

Readers of This Article Are Interested in These Resources


41-slide PowerPoint presentation
A management consulting framework for establishing IT operating model in the organization (ITOM). The framework consist of blueprint documents and tools for the following dimensions; IT processes (including process descriptions), organizational setup of IT (including [read more]


 
129-slide PowerPoint presentation
 
 
243-slide PowerPoint presentation

About Shane Avron

Shane Avron is a freelance writer, specializing in business, general management, enterprise software, and digital technologies. In addition to Flevy, Shane's articles have appeared in Huffington Post, Forbes Magazine, among other business journals.


Complimentary Business Training Guides


Many companies develop robust strategies, but struggle with operationalizing their strategies into implementable steps. This presentation from flevy introduces 12 powerful business frameworks spanning both Strategy Development and Strategy Execution. [Learn more]

  This 48-page whitepaper, authored by consultancy Envisioning, provides the frameworks, tools, and insights needed to manage serious Change—under the backdrop of the business lifecycle. These lifecycle stages are each marked by distinct attributes, challenges, and behaviors. [Learn more]

We've developed a very comprehensive collection of Strategy & Transformation PowerPoint templates for you to use in your own business presentations, spanning topics from Growth Strategy to Brand Development to Innovation to Customer Experience to Strategic Management. [Learn more]

  We have compiled a collection of 10 Lean Six Sigma templates (Excel) and Operational Excellence guides (PowerPoint) by a multitude of LSS experts. These tools cover topics including 8 Disciplines (8D), 5 Why's, 7 Wastes, Value Stream Mapping (VSM), and DMAIC. [Learn more]
Recent Articles by Corporate Function

  

  

  

  

  

The Flevy Business Blog (https://flevy.com/blog) is a leading source of information on business strategies, business theories, and business stories. Most of our articles are authored by management consultants and industry executives with over 20 years of experience.

Flevy (https://flevy.com) is the marketplace for business best practices, such as management frameworks, presentation templates, and financial models. Our best practice documents are of the same caliber as those produced by top-tier consulting firms (like McKinsey, Bain, Accenture, BCG, and Deloitte) and used by Fortune 100 organizations. Learn more about Flevy here.
  


OUR CORE OFFERINGS
Flevy Marketplace: Top 100
· Strategy & Transformation
· Digital Transformation
· Operational Excellence
· Organization & Change
· Financial Models
· Consulting Frameworks
· PowerPoint Templates
FlevyPro (Subscription Service)
KPI Library
Streams (Functional Bundles)
Flevy Executive Learning (FEL)
PowerPoint Services

FREE Resources

About Flevy
Management Topics
Marcus (AI-Powered Consultant)
Partner Program
LinkedIn Influencer Marketing
FAQ / Terms / Privacy / Blog
Contact Us: support@flevy.com



CONNECT WITH US!
       
TOP 100 TRENDING TOPICS
Acquisition Strategy
Agile
Analytics
Artificial Intelligence
Balanced Scorecard
Best Practices
Big Data
Breakout Strategy
Business Continuity Planning
Business Plan Financial Model
Business Transformation
CMMI
COBIT
Change Management
Cloud
Communications Strategy
Company Financial Model
Competitive Advantage
Competitive Analysis
Consulting Frameworks
Continuous Improvement
Core Competencies
Corporate Culture
Cost Reduction Assessment
Customer Experience

BROWSE BY FUNCTION
Strategy, Transformation, & Innovation
Digital Transformation
Operational Excellence and LSS
Organization, Change, & HR
Management Consulting

Customer Journey
Customer Service
Cyber Security
Data Privacy
Decision Making
Digital Marketing Strategy
Digital Transformation
Digital Transformation Strategy
Due Diligence
ESG
Employee Engagement
Employee Training
Enterprise Architecture
Growth Strategy
HR Strategy
Hiring
Hoshin Kanri
ISO 27001
ITIL
Information Technology
Innovation Management
Integrated Financial Model
Kaizen
Kanban
Key Performance Indicators

ADDITIONAL RESOURCES
Business Strategy Frameworks
Case Studies
Consulting Training Guides
COVID-19 Trend Data
Digital Transformation
Financial Advising Services (FAS)

Knowledge Management
Leadership
Lean
Lean Manufacturing
Logistics
M&A (Mergers & Acquisitions)
Manufacturing
Market Research
Marketing Plan Development
Maturity Model
McKinsey PowerPoint
McKinsey Templates
Operational Excellence
Organizational Change
Organizational Design
Performance Management
Post-merger Integration
Pricing Strategy
Process Improvement
Process Maps
Procurement Strategy
Product Launch Strategy
Product Strategy
Project Management
Quality Management


Free Resources
KPI Library
Lean Management
Lean Six Sigma Training Guides
Marcus Insights
Operational Excellence

Real Estate
Remote Work
Restructuring
Risk Management
Robotic Process Automation
SWOT
SaaS
Sales
Scrum
Service Design
Six Sigma Project
Social Media Strategy
Strategic Planning
Strategic Thinking
Strategy Development
Supply Chain Analysis
Sustainability
Target Operating Model
Team Management
Total Productive Maintenance
Value Chain Analysis
Value Creation
Value Stream Mapping
Visual Workplace
Workplace Safety


Product Strategy
Small Business Owner
Startup Resources
Strategic Planning
Strategic Planning Process
Value Innovation Strategy


© 2012-2024 Copyright. Flevy LLC. All Rights Reserved.