6 Benefits of Managed Services Outsourcing

Managed services outsourcing is growing in correlation with our dependence on well-performing, secure IT architectures. The Technology & Services Industry Association (TSIA) says, “For the past 24 months, managed services has been one of the fastest growing revenue engines of the technology industry.” Experts predict a compound annual growth rate (CAGR) of 13.6% through 2030 for the managed services outsourcing industry.

Several factors, such as the difficulties in finding IT expertise and the need to focus on core internal business operations, have carved a critical niche for managed services outsourcing providers. What are the benefits of using these firms?

Types of Managed Services Outsourcing

Today, you don’t have to rely entirely on your in-house IT team for the infrastructure tools you use. Managed services outsourcing, which follows a similar service model to a software as a service (SaaS) product, is an option now for almost any IT function you consider. Some of the most common types of MSO services include:

• IT infrastructure management of servers, storage and network devices.
• Application management of software, from installation and training to configuration and management.
• Network security management of a company’s infrastructure.
• Cloud services management for applications, infrastructures and platforms.
• Database and network management, including backups, upgrades and performance management.
• Help desk and technical support to assist end-users with hardware and software issues.

Business process outsourcing also handles specific internal services like HR and accounting. Generally, the managed services outsourcing company can tailor their efforts to fit your needs.

6 Benefits of Using Managed Services Outsourcing in Your IT Department

The popularity of managed services outsourcing is growing because of the substantial benefits these firms offer. There are several benefits associated with these providers. Managed services outsourcing can provide you with:

1. Access to specialized skills and expertise: Managed services providers are experts in their service. Managed services outsourcing firms fill gaps in knowledge within your in-house team. Outsourcing to these providers means you gain access to skills and expertise you wouldn’t usually have. These resources are particularly important because 54% of companies are currently experiencing an IT talent shortage. For example, a managed services organization may be your best option if your company cannot find cybersecurity talent. But cybersecurity isn’t the only option; the best MSO companies can perform multiple functions for your company, from data backups and network management to networking security and administration.
2. Cost savings: Outsourcing to a managed services provider is more cost-effective than hiring an internal IT team, particularly in those areas where it is more difficult to find talent, such as cybersecurity. Managed services outsourcing providers offer economies of scale to your business that you won’t experience if you’re hiring an in-house IT expert. You’ll cut costs related to the quantity of on-site hardware by replacing it with cloud offerings from your managed services provider. Reducing overhead generally is a smart move. Managed services outsourcing can help you cut costs. CompTIA reports companies that use a managed services provider can cut their costs by up to 25%. Some industry analysts cite an even higher number.
3. Freeing up your team: Managed services outsourcing helps your IT team focus on core business functions and strategic initiatives. It removes their worries of “keeping the lights on,” freeing tech teams up to be as innovative as necessary to build your business. Outsourcing complex procedures, such as cybersecurity, can increase competitiveness, efficiency and productivity.
4. Flexibility and scalability: Most MSOs offer core business offerings like cybersecurity or support for specific product offerings like Microsoft 365. However, most of these service providers also understand the need for flexibility in designing options to meet your needs and changing business demands. These services can also scale up or down as needed to fit the volatile markets and evolving initiatives your company requires. Flexibility and scalability are particularly beneficial for companies undergoing rapid digital transformation or those businesses ramping up in response to cybersecurity threats.
5. Risk reduction: Managed services outsourcing lessens your risk. These companies can provide specific risk mitigation and management services to handle changing compliance rules and security threats. A managed services provider can handle the complexities of regulatory compliance, conducting regular audits of your infrastructures and workflows. For example, your company faces regulatory scrutiny if even one of a litany of regulations around PCI DSS or HIPPA are violated. Costly fines, penalties and negative public relations can put your business practices under the microscope.Risk is also lessened around cybersecurity, an evolving practice that must remain agile in the face of changing threats. Managed services providers can focus on one thing — keeping your data safe. If you’re currently using an internal IT team to monitor cybersecurity and other duties, it puts you at risk because cybersecurity today is a full-time undertaking.
6. Improved service quality: Managed services outsourcing companies focus on providing high-quality resources to their clients. These reliable relationships deliver value to companies seeking to improve the quality of their IT services. One area where it is particularly impactful is if your managed service company handles your IT help desk. An IT help desk is the first point of contact for internal or external end-users. These services play a vital role in any service-oriented company. Too often, IT internal staff handle trouble tickets as they are pulled in many different directions by competing responsibilities. Instead, managed services outsourcing of your IT help desk frees up your team while allowing for the kind of service-driven quality that your customers and employees deserve.

Do You Need Managed Services Outsourcing?

Companies understand the benefits of managed services outsourcing. That’s why more than 90% of Global 2000 companies partner with these resources. Red River offers end-to-end managed services outsourcing in cybersecurity, network services and help desk support. Our highly experienced team can bring you all the benefits of an outsourcing partnership. Contact us today to find out how we can help your business.

FAQ

What is managed services outsourcing?

Managed services outsourcing is a business model where companies outsource specific IT functions to a third-party vendor who handles these activities. The outsourced functions can include application support, cybersecurity, IT infrastructure management and more.

Why do companies use managed services outsourcing?

Managed services outsourcing offers expertise that a company may not have in-house. These firms typically save their clients the overhead of hiring additional staff to do the work. Managed services outsourcing allows companies to free up their core teams to focus on key initiatives. These services are flexible and can scale up or down as needed. Overall, managed services outsourcing lessens risks and increases the efficiencies of the clients they serve.