Business organizations often hire managed service providers (MSPs) to reduce their expenses. MSPs primarily manage their client’s IT infrastructure remotely. This allows clients to free up resources and capital, which can put to more productive use. MSPs have state-of-the-art technology, quality expertise and offer full-time IT services at a fraction of the cost. No wonder, when it comes to cost reduction, MSPs are an excellent choice for organizations of all sizes.
Managed Service Providers provide services that vary from hardware support and network security to software upgrades and system backups. They have a partnership with global technology leaders, which allow them to offer advanced technology for superior customer service.
Here’s how MSPs can help enterprises in cost reduction and business growth.
Accidental downtime is costly as it results in loss of business opportunities and frustrated end-customer experience. According to a recent ITIC survey, one hour of downtime can cost you more than $100, 000. The longer it takes to restore your system, the greater will be the cost of downtime. Hiring Managed Service Providers can significantly reduce potential downtime, which can save you thousands of dollars.
MSPs provide 24/7 IT & network monitoring services, which ensures that your IT infrastructure is available at all times and downtime is kept to a minimum. MSPs commonly use remote monitoring and management (RMM) software to proactively monitor client endpoints.
Provide a Cost-Effective Solution
MSPs provide services under a subscription model. They generally charge a flat monthly fee under the subscription model. Now, imagine if you decide to manage your IT infrastructure on your own. Things can get complicated and messy when you avoid hiring managed services.
Since budgets are often limited, many companies don’t have the right combination of expertise, technology and processes to handle their IT assets on their own. On the other hand, MSPs monitor infrastructure and provide access to their experienced staff 24/7 – all at affordable pricing.
When you outsource your activities to MSPs, you don’t have to hire an additional workforce to manage your operations. This helps you to keep your labor costs in check. In fact, quite a few companies actually reduce their in-house team after hiring MSPs. In simple words, with MSP at your end, you really don’t have to worry about hiring additional staff. This allows for sustainable growth without incurring extra expenses.
Moreover, MSPs offer different support tools and software to run your day-to-day business operations effectively. This means you will have to buy fewer tools from your own pocket, thereby further reducing your operating cost.
Improves Operational Efficiency
As we all know, inefficient processes can hurt any company financially as it can lead to cost overheads. According to market research firm IDC, companies lose 20 to 30 per cent in revenue every year due to inefficiencies. However, by outsourcing your IT needs to MSPs, you can achieve operational efficiency and cost-saving.
Operational efficiency is one of many benefits of moving your day-to-day operations to a third party such as managed service providers. MSPs use sophisticated tools and an appropriate business management platform to handle your IT infrastructure. This helps to streamline and automate your processes. They bring workflow standardization, eliminate inefficiencies in your processes, which can save time and money of your organization.
Image your staff spending more time fixing issues rather than focusing on core processes that drive growth. Won’t that cost your company thousands of dollars in the long run? The key to resolve this issue is to hire MSPs who efficiently handle problem fixing and maintenance of your IT systems. MSPs reduce the burden on your internal IT staff. Your team no longer will have to handle much of the day-to-day drudge work that often takes a lot of their time. This can certainly result in cost savings and profitability.
Data breach has long been a top concern for businesses of all sizes due to the gravity of consequences that follow. The cost to recover from malware or a DoS attack can be enormous. Ponemon Institute estimates that the average cost of a data breach was $3.5 million in 2017.
MSPs take appropriate security measures to prevent data breaches and avoid liability cost. They also provide backup and disaster recovery services that enable companies better safeguard their data, locally and offsite. This allows companies to recover quickly and cost-effectively in the event of a disaster.
Better Technology Investments
Although technology investments play an effective role in business growth, simply spending more money is not the answer. Going overboard on IT spending can ruin your budget and deeply harm your business. Avoid missteps and improve your chances of benefiting from an IT investment by taking the help of MSPs.
MSPs have a team of technology experts that stay up to date with the latest technology trends. So they can guide you in making the right IT investment that can meet your business needs. They can give you a clear idea about what technology options are going to be helpful for your business.
Purchase IT Supplies at Special Pricing
MSPs often share a good relationship with technology vendors. This can be a valuable business asset for your company. A strong relationship will enable MSPs to negotiate better prices with vendors. As a result, MSPs can purchase your IT supplies required for managing your infrastructure at special pricing. So your MSP may procure IT products at wholesale or volume prices. Getting IT supplies at discount price from your vendor gives you a good opportunity to maximize your cost savings.