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How to Leverage Managed Services Providers to Control IT Costs

Different Cost Management Methods

The best way to leverage a managed service provider (MSP) depends on how your IT is being managed. This is very simple because there are only three IT management models: in-house, outsourced, and hybrid IT services.
If your company has in-house IT, it can leverage certain functions and tools that MSPs use to better monitor, standardize, and automate very time-consuming functions.

For example, monitoring tools that provide IT managers with key information about system status, network status, security status, etc. across the company or enterprise.

These licenses are expensive but they are a cost of doing business for MSPs, who can license them inexpensively to their clients.

Security is another service that is much less expensive to outsource than it is to support in-house. Consulting and strategic planning is another area where in-house IT departments can benefit from MSPs’ tremendous range of experience.

Tier 2 or escalated support is also frequently outsourced to MSPs as an alternative to adding new full-time hires.

 

Supplementing Your Relationship With an MSP

If your current IT provider is already a managed services provider, there are two simple ways to supplement this relationship.

If your current IT provider is already a managed services provider, there are two simple ways to supplement this relationship.

 

1. Security

If your current IT provider does not provide security consulting and managed security services, consider seeking an independent security vulnerability assessment and cybersecurity plan from Power Consulting.

Many businesses now have MSPs running IT, with an in-house full-time hire handling primary support. This model has become very popular.

 

2. Hybrid Model

This flexible arrangement is increasingly popular for midsized companies. It puts the best of both services together into unified Hybrid Services.  There are two flavors:

Client IT Leads:  In this arrangement, client IT usually manages infrastructure, procurement, vendor management, budgeting and planning, primary support, hiring, new employee onboarding and onsite-related tasks.

The MSP will often handle support escalation, monitoring, security, projects, and strategic recommendations.

MSP Leads: When an MSP is managing a mid-sized company’s IT, it handles every aspect of IT.  However, it is not uncommon for the client to hire a primary support resource in-house.

This serves to close a service gap for those companies that want desk-side service and the shortest possible response times.

In general, for small businesses, MSPs are the best value.  In-house IT has certain advantages but is typically very costly. Qualified full-time professionals are expensive. Managing several full time employees, with vacation time and benefits is also expensive.

It also requires creating a complete information and security infrastructure which is very expensive to develop, support, and maintain.

An MSP performs these services for dozens or hundreds of companies, and has developed ways to manage these far-flung resources effectively without a large impact on costs.

In terms of flexibility, a managed services contract is less of a commitment than that of full-time employees. Moreover managed services contracts are often flexible by design, to meet changing client needs.

 

What are Co-Managed IT Services?

Companies use co-managed IT services to augment their in-house IT team.

Unlike managed IT services which typically entail managing an organization’s entire infrastructure, co-managed IT services allow organizations to blend co-managed IT with support, solutions, and services that are better suited to their current and future needs.

In most cases, co-managed IT services allow organizations to scale their services on a fixed month-to-month basis, enabling businesses to properly gap fill without the need for additional hiring.

Learn More About Our Other Managed IT Services
Managed IT Services IT Project Mgmt. Cloud Services Hardware Asset Mng.
IT Helpdesk Network Monitoring Software Asset Mng. Cyber Security

 

Reduced Overhead

The salaries of IT professionals are increasing as more businesses and people rely on technology. In fact, the average salary for a computer and information technology (IT) technician in the United States is $97,430.

Through co-managed IT services, businesses can:

  • Allow the internal IT team on what it does best (e.g., user support or critical app support)
  • Supplement their IT capabilities (e.g., security, monitoring, escalated support
  • Flexibly add resources (e.g., on-site visits, projects, PTO support)
  • Reduce hiring, recruiting, and onboarding costs
  • Rely on a team of seasoned specialists covering every area of IT management

 

Fixed Monthly Fees

MSPs provide predictable monthly fees for IT services. Should an organization need additional services, the flexibility of MSP service packages ensures businesses can quickly revise their packages to ensure they remain aligned with their goals.

Additionally, providing organizations with access to enterprise-grade tools and technologies is another way co-managed services help businesses manage costs.

Gartner Says Your IT Will Will Double in Four Years

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Automating Routine Tasks

Managed service providers often leverage robotic process automation (RPA) to automate certain tasks. By automating routine tasks or outsourcing repetitive tasks, businesses benefit from:
Keeping efficiency in check
Freeing up in-house IT staff
Improving the economies of scale
Reducing IT spending that optimizes budgets

Optimize Your IT Project Management

When businesses outsource projects to IT companies, budgets and estimates are lined up in advance.
This allows the IT company’s project managers to plan, schedule, and organize resources which results in less consumption and confusion.

As a result, businesses enjoy time and money savings while optimizing their resources.

 

Lowering Cybersecurity Insurance Liability

Poorly maintained infrastructures or issues as minor as an incomplete server patch can leave organizations vulnerable to:

  • Data loss
  • Public relation blowbacks
  • Denial of insurance coverage
  • And more

With co-managed IT services, businesses can ensure system patches are managed timely and correctly, ensure ongoing compliance, lower premiums, and more.

 

Improve System Performance Through Preventative Maintenance

Co-managed IT services are structured to provide organizations with long-term cost savings. By managing security updates and routine system upgrades, businesses can optimize systems and benefit from decreased downtime.

For fast-growing small to medium-sized businesses, co-managed IT services present a cost-effective way to meet technology needs while benefiting from improved infrastructure alignment, on-hand expertise, and more.

 

Regain Control of Your Budget With Co-Managed IT Services

In business, every dollar adds up. The more you do to optimize your costs, the better. Co-managed IT services are incredibly beneficial to an organization’s IT success.

If your business is struggling to maintain its infrastructure, if your end users are less happy, and you’re looking to manage costs without losing capabilities, then co-managed IT services are the best way forward.

At Power Consulting, we bring modified service packages, more than 20 years in business, and rapid help desk support to the table, so you can rest assured that all of your IT needs are properly covered.

For more information regarding our co-managed IT services, contact us today.