What is a managed service provider?

A managed service provider (MSP) is a third-party contractor who takes up the responsibility of managing various aspects of an organization. Every managed service provider specializes in providing continuous and professional managerial assistance in a particular area. For instance, both small and large businesses can outsource their accounting, human resource management, systems administration, and asset management, among other tasks to managed service providers.

Over the last decade or so, with the popularity of cloud computing and cloud-based offerings such as Software as a Service (SaaS) and Infrastructure as a Service (IaaS), the term managed services has become synonymous with remote IT management. Traditionally, managed services referred to on-site infrastructure and device-centric types of IT service but has since expanded to incorporate intangible aspects of IT management, such as cybersecurity, communication, and data management.

In this article, we’ll take managed IT services as our primary focus since it’s the most commonly outsourced service. This refers to the management of IT infrastructure and assets from servers, networks, end-user tools, to data centers. Nowadays, more and more businesses are partnering with MSPs to realize their IT goals. A recent study by Grand View Research, Inc. predicts that the global managed services market will reach $376.13 billion by 2025, and the industry is expected to register an 11.7% CAGR within the forecasted period.

Talent scarcity, technological advancements, and changes in the market are some of the main reasons why many organizations are teaming up with MSPs. So, how exactly do businesses benefit from outsourcing their IT services to MSPs?

Cost-saving and predictable IT expenditure

One of the greatest incentives for working with MSPs is the considerable cost savings and efficient use of time and resources. An IT managed service provider can significantly reduce the client’s operating cost by lowering IT expenses.

Firstly, the business does not need to onboard and train an entire IT department to manage the IT infrastructure, saving both time and money. Secondly, most MSPs charge a monthly or annual flat-rate subscription fee, making IT expenses easy to anticipate and budget. In addition, clients only pay for the services that they need by signing a customized Service Level Agreement (SLA).

Proactive solutions to IT problems

MSPs are able to come up with useful recommendations and solutions to IT problems. For instance, an MSP is responsible for making or recommending systems upgrades, patching software bugs and security features, and troubleshooting and resolving glitches. This is essential in ensuring that all IT resources are available on-demand and minimizing costly downtime and breakdowns.

Drawing upon their experience, MSPs can also provide valuable insights and advice on the IT systems that can be useful in enhancing the efficiency and productivity of the IT infrastructure and the business as a whole.

Shifting the IT burden

Most organizations, particularly those handling sensitive data, are required by law to meet particular requirements and standards with their IT resources. Most of these regulations involve data protection and privacy and are there to ensure data and network security. The responsibility of complying with such standards falls on the MSP.

Plus, having an MSP handle the IT responsibilities frees up the rest of your staff members to concentrate on other important tasks. It also makes sense to assign IT duties to capable professionals instead of inadequately trained and inexperienced employees.

Infrastructure scalability

As a business grows or adjusts some of its operations, the IT demands and requirements also change. Many organizations find it more economical and effective to start small with their IT Infrastructure and continuously expand it as their needs grow. MSPs make it easy and convenient for enterprises to either scale up or scale down their IT systems whenever needed.

Most MSPs offer scalable solutions that accommodate rapid changes such as growth spurts and seasonal challenges. MSPs can provide the necessary services and support to help businesses cope with and even anticipate IT-related hurdles.

Realize your full potential

MSPs are all about providing instant expert services conveniently and cost-effectively. This helps businesses reduce their IT risks and costs, and also helps maintain a healthy and efficient IT infrastructure. However, all these benefits largely depend on the particular managed service provider. Different MSPs have varying service models, codes of conduct, management scopes, and of course, pricing. It’s therefore essential to choose an MSP that aligns perfectly with the company’s core objectives, goals, and needs.
Get in touch with us and learn more about IT managed services, and about how our various products and services can help your business realize its full potential in a data-driven world.