What does a managed service provider do and how do they help an organisation get the most from their IT investments?
The term managed service provider (MSP) refers to a company that delivers IT-as-a-service (ITaaS). There’s a fair amount of information about what MSPs do and how they can help your business, but it can be hard to figure out how their service delivery methods differ and which model of service is right for your business
What are managed IT services?
Managed IT services are as they sound – a set of IT services is controlled and operated by a third party on an ongoing basis. The client defines a selection of tasks and responsibilities that they would otherwise have to perform in-house and outsource these to a dedicated provider.
The type of managed IT services provided varies by the client and MSP. They can take the form of managing and maintaining IT infrastructure or providing help-desk solutions to internal staff. Some MSPs offer strategic planning, professional consulting, and recruitment.
What are common IT service models?
The traditional break/fix model refers to the practice of running IT solutions in the same way you might run an old car. You leave it alone as long as it’s working, with a little maintenance to keep it chugging along. If something breaks, you take it to a mechanic and fix the issue.
This operational IT model works well with businesses running smaller IT operations that service a limited number of users. Servicing and capital costs can be lower initially as the solutions employed are often left in place for longer until they fail.
The tipping point for moving from a break/fix to a managed IT model occurs when the disruption costs and productivity short-fall outweigh the savings from under-investing in IT. That’s when organisations will decide whether to in-source or outsource the ongoing management of their IT systems.
With an outsourcing model, an organisation hires expertise when they need it. Managed IT services are one form of outsourcing, however not all IT outsourcing engagements have ongoing management and services.
Projects have a specific set of requirements and a defined outcome. You might engage with an external service provider to work on a particular project because the outsourcer is cost-effective or has a depth of experience in one specific area.
Outsourcing offers organisations a way to build and execute projects without taking on extra in-house staff. The difference between an outsourced project and a break/fix model usually comes down to the nature of the project – break/fix is reactive, whereas outsourcing can be more proactive. This option can help if a business has limited expertise, space, or resources, and works well if they only need the service provided on a one-off or intermittent basis.
Finally, a managed IT service provider works alongside the organisation on a contracted basis. The length of the agreement varies from month-to-month to multi-year terms. The provider takes on the responsibility for actively delivering and managing a set of IT services to ensure they meet the agreed standards outlined in a service level agreement (SLA).
The MSP provides access to expertise and staffing capacity that the client organisation might otherwise struggle to reach. Over time, the MSP can become an integral part of normal business operations.
Organisations can choose to outsource all of their IT management and services to an MSP or to supplement their internal team. By employing an MSP to take on routine or specialist services, internal IT staff can focus on adding value in specialist business-related roles.
What are the benefits of a proactive managed IT service?
There are obvious potential benefits with contracting your IT services to an MSP, such as fixing your monthly costs to receive ‘unlimited’ support services, which are guaranteed by a service level agreement (SLA). This frees the organisation to get help, when they need it, without worrying about escalating costs and approval delays. However, there are many less obvious benefits.
With a traditional outsourcing model, the organisation only reaches out to the service provider when there is a project – or a problem – that requires their expertise. There is little to no incentive for the outsourcer to offer proactive maintenance to prevent issues from arising.
Managed IT providers offer value because their business model moves the operational service burden from the client to the service provider. The more issues the client encounters, the more resources the MSP needs to use. Conversely, when the provider puts more time and effort into ensuring their clients have a smooth-running IT environment, there are fewer issues. Thus, both the provider and the client share aligned values – they both want a problem-free IT environment that enhances efficiencies.
Results of proactive IT management
Is a managed service provider right for my business?
Managed service providers can offer many opportunities to organisations of all sizes, providing access to expert advice, proven solutions, and flexible delivery. However, each organisation is different, and what works for one may not work for others, even in the same industry. So, it’s essential to keep a few things in mind when investigating MSP services.
Are you continually experiencing technical issues?
Technology is wonderful when it works. Some processes and infrastructure work so well that many employees don’t even know they exist – until they break. And given time, they will. If you have an IT team that can stay on top of preventative maintenance and tech support issues, then a managed IT service may offer little value. On the other hand, if problems keep cropping up that impact operational efficiencies, that may be a sign that it’s time to take a proactive approach to your IT.
Does your IT department have what it needs?
Your IT department holds the key to unlocking innovation within your business. Collaboration, insights, communication – all of this and more receive critical support from internal IT staff. But it’s a two-way street. If there are gaps in your IT capacity and capability, that missing expertise will need to be provided by someone else.
Do you need a tactical shift?
Working with managed IT service providers can help internal IT teams move from time-consuming tactical tasks to more strategic projects. Likewise, using specialist external skills to implement short-term projects can be more cost-effective than investing in non-core internal teams. Many organisations use co-managed IT to make the most of their IT resources, sharing tools and responsibilities to better coordinate internal and external teams.
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