Managed IT services is the process of outsourcing the management of various functions and processes to an external provider in order to enhance internal efficiency and cut costs. The term Managed IT is a fairly new term and refers to the latest trend in information technology deployment. IT Managed Services basically involves the outsourcing of IT functions and processes by an external third party company or organization. This technique not only eases the burden of high-level managers but also allows the employees to focus on their core job functions.
Businesses are increasingly outsourcing to a number of IT Managed Services providers
in an effort to reduce operating costs and improve business model by improving quality, reducing costs, and streamlining business operations. The concept of Managed IT services can be best explained by means of an example; assume that the company has a branch office in New York. Now, assume that a technological problem occurs at the branch office which requires the services of an experienced computer technician who is based in San Francisco. The business owner decides to outsource the work to a San Francisco managed services provider in order to save money, manpower and energy. Also if you are looking for assistance with your network administrative tools.
The benefits of a managed services provider should be obvious to anyone. Firstly, it means reduced operational costs because the outsourced technician in New York is being employed by a managed services provider and therefore the business owner is not required to provide him with the office space, computer equipment and other resources required. Secondly, Managed IT Outsourcing also allows the business owner to have more localized expertise on specific computer software programs as compared to a remote employee who may not know the specialities of the programming language used in a particular program. Thirdly, Managed IT outsourcing has enabled small and medium-sized businesses to expand their market share by hiring managed IT services. Now, instead of having a few computer technicians based in a certain location, several technicians can be deployed to a different location, thereby increasing customer service.
However, there are some downsides of opting for an outsourced managed services provider. One of the first disadvantages is that the cost is usually much higher than what one would pay for hiring someone locally. Another drawback is that it may take a long time before you get to see the results of your outsourcing efforts. This could take months or even years, since there is a lot of communication between the outsourced technician and the client. Most importantly, choosing managed services providers from an offshore location poses certain security issues.
Outsourcing of technical support has become a popular choice among many companies who want to cut their costs. Many companies hire third-party IT support providers because it enables them to cut costs without compromising on quality. However, most companies who have chosen managed support outsourcing have experienced a reduction in productivity. They have reported that while they have hired third-party technical support providers to handle the technical aspects of their business, they do not have enough time to concentrate on other areas such as marketing and product development. This means that although the outsourced service provider has effectively handled the administrative task of managing their company’s IT systems, the company is still having to hire its own in-house technicians.
Another disadvantage of the managed services business model
is that the IT management company often controls all access to the information technology infrastructure. As a result, the outsourced technical support company is left to deal with administrative tasks such as reviewing security policies and computer network security. Furthermore, companies who have chosen to outsource their managed IT services usually have no control over the training of their outsourced technical support staff. As a result, many companies who have employed the managed services business model have found that their IT staffs have been trained poorly and that they have a lack of necessary skills.
- Companies who have chosen to use IT outsourcing to manage their IT systems
- Have reported that they have experienced both positive and negative experiences.
- Some companies have experienced a great increase in productivity as a result of using managed support services.
However, other companies have reported increased levels of confusion and frustration as a result of the use of the managed services model. Some companies have reported that they have been unable to proactively resolve issues with their IT network as a direct result of using the MSP model.
Some service providers have tried to address the problems encountered by some businesses by adopting a mixed model of managed and remote service. For instance, some have chosen to provide both remote and managed versions of their IT services. Other companies have adopted a single managed services provider model where they provide only remote computing capability to their clients. In addition to these disadvantages, there are also some advantages of using a managed services provider model including the ability to save on employee expenses and labor costs, better collaboration among employees and clients, reduced need for IT capital expenditure, and a higher level of knowledge about the ins and outs of the IT network. Some companies have reported that their experiences with managed services provided by a remote service provider were much better than those from an in-house technician.