Managed IT services are one of the many ways an organization can choose to handle their IT needs. With managed IT services, a third-party handles the entirety of the tasks and responsibilities regarding managing IT and keeping the company running. The difference between this and many traditional third-party services is that it’s provided for a set cost. Instead of having access to an hourly consultant rate, you’ll be paying a flat rate monthly (or annually) in exchange for total coverage.
Every arrangement is slightly different and must be outlined very clearly in the Service Level Agreement (also known as the SLA). This document will arrange not only the cost structure, but also the exact services that are included in the partnership, and the metrics that are used to define success or failure.
There are many reasons that companies elect to go with managed IT services to handle their day-to-day needs. Here are five of the most compelling reasons:
1. Provides Total Alignment Between Both Parties
In a managed services agreement, both parties are aligned for maximum efficiency and performance. Since it’s not an hourly rate, the third-party is incentivized to handle your IT in an efficient and effective manner. Otherwise, they have to spend more time and manpower resolving your issues, which brings down their effective hourly rate.
Additionally, if they don’t live up to the metrics set forth by the SLA, they may be liable for penalties or even complete termination of the contract. In this way, it’s in both companies interest to do the very best job possible.
2. Focuses on Being Proactive versus Reactive
If you’re paying by the hour, the services you’ll receive are going to be reactive. When your company notices an issue, they’ll reach out to the third-party to help fix it. Managed services provide proactive support. Since they’re working for you no matter if there’s a problem or not, much of their time is spent preventing problems in the first place. This results in much smoother daily operations and the avoidance of problems that could potentially hurt your businesses but would be unavoidable with another type of arrangement.
3. Contains Simple Cost Structure
The simple cost structure of managed IT services will be much appreciated by your accounting department and whoever is setting the budget. Instead of seeing costs vary wildly by the amount of support required in a particular month, the amount will be a flat fee. You’ll also likely save a great deal of money versus hiring a fully functional team in-house since you won’t need to pay for things like recruiting, onboarding, benefits, and continued training.
4. Makes Projects Easier to Manage
When you need to roll out a brand-new technology or simply update an existing one, it can take a great deal of time and resources. This is especially true if the third-party isn’t used to the way your business operates each day and has to fit the entire roll out into a small window of time. If you have continuous support, however, it’s a much more manageable process. They can work on the project when they have a spare moment in the day. Since they’re fully integrated into your day-to-day processes, they’ll have a much better idea of how to implement a new system from end-to-end, including training and providing post-launch support.
5. Offers Access to True Experts
Unless you’re a massive organization, it’s unlikely that you can afford to recruit, train, and maintain the very best in the IT field. With an agreement with a top-notch IT firm, you gain access to experience and perspectives that you would be unlikely to otherwise access. These talented professionals will be able to help you with all of your IT needs, from daily maintenance to improving upon your existing systems and processes.
Managed IT services are only one of the many ways that a company can choose to handle its IT needs. However, it offers many advantages over some of the other options, including handling IT in-house and going with an hourly consultant-based fee schedule. If you believe that your business could benefit from controlled costs, improved support, and access to an incredible variety of IT talent, managed IT services might be the best option for your business.
Published On: 26th July 2019 by Ernie Sherman.