Let’s be honest. Running a business is a constant juggling act. On any given day, you bounce back and forth between numerous tasks to keep everything afloat.
Information technology (IT) demands are at an all-time high in an increasingly digital world. And with the average data breach cost hitting $4.35 million in 2022, there’s no room to skimp on resources.
Luckily, there are a few ways to reduce the headache of managing your IT infrastructure without breaking the bank and sacrificing quality or efficiency.
That’s where adding a managed service provider (MSP) to your company’s ecosystem comes into play. And you aren’t alone. By the end of 2023, spending on IT outsourcing will exceed $1.3 trillion as companies increase their search for IT support and cybersecurity experts.
In this article, we’ll discuss managed services and how they can help improve efficiency in your business technology operations and reduce IT overhead.
Let’s dive in.
What is a Managed Service Provider (MSP)?
A managed service provider (MSP) is a third-party company that offers IT support to businesses and other organizations (read: outsourcing).
The MSP takes care of day-to-day IT tasks, such as installing and maintaining hardware, software updates, and security patches.
According to the Deloitte Global Outsourcing Survey, 70% of companies agree that the number one reason for outsourcing is cost reduction, and for a good reason.
Hiring IT teams in-house can be a costly affair. There are many expenses outside a standard salary – including signing bonuses, recruiter fees, benefits, and taxes. Therefore, right off the bat, you can see the significant savings of outsourcing your IT services to a managed services provider.
A managed service provider offers a range of different services, including:
- Server maintenance and support
- Network security monitoring, including firewalls and intrusion detection systems (IDSs)
- Backup and disaster recovery solutions
- Mobile device management
- Cybersecurity
- Auditing and compliance
- Data analysis and reporting
- Cloud computing management
MSPs have quickly become the IT department of choice for many companies. Benefits of managed services include:
- Avoiding the high costs associated with hiring and training a full-time internal team.
- Prevent data breaches and downtime.
- Put your resources towards your core business.
- Access advanced technology.
- Streamline processes and operations across the entire organisation
Now that we have the basics out of the way, let’s dive into how managed services reduce IT overhead.
5 Simple Ways Managed Service Providers (MSPs) Can Reduce IT Overhead in 2023
1. Avoid costly downtime
Every downtime statistic on the internet tells one story: avoid it at all costs.
Still not convinced? The cost of downtime is staggering, with more than 90% of enterprises reporting downtime costs exceeding more than USD 300,000 per hour. Ouch.
But the effects go beyond lost revenue while your servers are offline. Your productivity is hindered, and you risk reputation damage. The latter can take years to build back consumer trust.
Thankfully, managed IT services can help reduce risk, downtime, and costs. The most obvious way that managed services can reduce risk is by maintaining the stability of your network or using a colocation data center to help with disaster recovery.
A stable network is more likely to function correctly and quickly respond to any issues. No more long hours spent troubleshooting problems, and most MSPs offer 24/7 monitoring.
The cost of downtime is high, mainly when it results from a security breach or other unanticipated problem that requires immediate attention and brings everything else down in the office.
Plus, there’s the expense of lost business. At the same time, customers can’t access critical systems like email or online ordering processes due to a server failure or poor connection speeds — not something anyone wants to experience.
2. Predictable budgeting
Managed service providers allow you to predict exactly how much your technology costs will increase each year, so there are no surprises when it comes time to negotiate or renew the contracts.
MSPs offer a wide range of pricing models, so you can find the one that works best for your business.
- Per-device: One option is per-device pricing, which means that the price you pay depends on the number of devices you have. For example, this would be an excellent option if you have a small office with ten employees and 20 devices.
- Per-user: Another common approach is per-user pricing. With this model, you pay based on how many users access the network and what kind of access they require. This pricing plan may be more cost-effective for large businesses, with many employees accessing various daily resources. On average, an MSP charges USD 125–150 per user.
- All-inclusive: All-inclusive pricing is the “all you can eat” flat rate for all of the services — from maintenance to network security monitoring — so there are no hidden fees or unexpected charges at any time during your contract term (which usually lasts one to three years).
Tiered pricing offers a single rate but multiple tiers based on how much service is needed. For example, each tier provides an increased level of support and additional services such as a dedicated server or enhanced monitoring tools. Companies like RedSwitches.BG even allow you to configure additional features such as control panel software and automatic backups for your VDS services according to your needs.
Using a MSP helps you track costs and reduce IT overhead if you’re nearing your IT budget limit.
3. Expertise in a broad range of technology
Your technology needs will evolve as your company grows. And that’s why a managed service provider is a great option to reduce IT overhead.
Think of an MSP as a one-stop shop. They can handle all your technology needs in one place, so you don’t need to hire individual roles or spend time figuring out how to manage everything yourself. It can give you access to the best technology when switching payroll providers, ensuring that your payroll processes are streamlined, and allowing you to focus on growing your business without worrying about payroll complexities.
With an MSP, you’ll have access to experts in a wide range of the most advanced technologies — everything from servers and data centers to cybersecurity solutions, software licensing, test data generators, and support services.
No more worrying about whether you have the latest software installed or the proper headcount to keep up with the IT needs of your growing company, your technology is in good hands with an MSP.
4. Improve security and compliance
More than 50% of all cyberattacks target SMBs. And the average cost of a data breach can range from $120,000 to $1.24 million for small businesses. That’s no drop in the bucket.
Security is among the most important factors when choosing the appropriate IT resources for your company. A simple data breach can put you out of business.
An MSP helps protect your business from malware, ransomware, and other types of malicious software that could destroy or compromise your company or client data.
Post-pandemic, there’s more demand for hybrid work arrangements. Make sure your company is secure on all devices, especially if you adopt a bring-your-own-device (BYOD) policy. To help protect your company, a mobile device management (MDM) software is an excellent option.
An MDM like Scalefusion gives your IT teams the visibility and control they need to secure, manage, and track your corporate-owned or employee-owned devices that access corporate data. And with prices as low as $2 per device/per month, it is a no-brainer to stop a million-dollar threat. To top it all off, MDM makes it easy to improve device compliance and automate policy enforcement. Gone are the days of the wrong employees accessing client information or leaving your company with proprietary information still on their phones or laptops.
5. Free up time for strategic initiatives and innovation
And finally, one of the best things about managed services is that it frees up time for your team to focus less on IT solutions and instead on strategic growth initiatives and innovation.
For example, eCommerce companies like American Trucks rely on IT services to keep their business alive. The website where customers can buy tires and rims needs to operate flawlessly. Without a working website, they have no way to sell to customers. And without sales, their business goes bust.
To top it off, they must also have a solid back-end connection to their warehouses and make sure client data is completely secure. Using an MSP can help lighten the load for internal IT teams, decrease the demand for infrastructure, and improve security features.
By outsourcing to an MSP, the American Trucks team has more time to focus on growing the company instead of wasting the day resolving operational headaches to keep the business afloat.
Now they can spend time marketing their company, like creating educational videos about the proper tires for Ford F150s, engaging with users on social media, and gathering feedback for a new product launch.
Wrapping up
Managed service providers (MSPs) are an effective way to reduce IT overhead and focus on your core business.
They’re flexible enough to work with any budget, so there’s no need to wait and see if it works out — you can start today without cutting a deep hole in your pockets.
Improving security and compliance by reducing risk exposure is a critical way to save money today. You can sleep easy knowing there’s no chance of a data breach or ransomware attack with 24/7 monitoring.
Outsourcing these responsibilities lets staff spend time on projects that help the company, like increasing sales or adding new products.
Don’t wait until it’s too late. Take control of your IT budget by investing in a managed service provider. The benefits surely outweigh the costs, and your bottom line will thank you.
