Outsourcing vs managed IT services

Most people (myself included) have some level of tech background, but the question is, how deep is your expertise? To run a successful business, you need to be able to hire the right people to manage your technology. If you’re looking to keep your costs down by outsourcing, choose between one of two options — managed services or hiring an in-house team.

But which is better for your business?

Assessing the need for outsourcing for your business

Outsourcing is a business model with numerous consequences. There are people who like them and there are ones who hates them. Nothing divides an office with business people more than sending out services from the house. However many people will argue against it until it becomes blue in their skin.

Despite those obstacles outsourcing has become extremely important today. 45% of companies have accepted outsourcing of IT functions. Outsourced services are more cost-effective for your business. It usually comes first to mind when someone recommends outsourcing these functions to others.

Comparing managed IT services to in-house it

First, managed services are not free. They are a necessary investment in your company’s future, just as an emergency fund is an essential part of your personal future. The same is true of in-house IT services. You must have a certain level of funds that are available to you at all times in case of a technology emergency.

The best place to start is by calculating what it would cost your company to support its systems without the help of managed IT services. This budget will help you understand the cost savings that managed IT services can bring to the table.

Once you’ve calculated the costs of your current in-house IT services, you can take into account the costs associated with hiring your own IT staff. These include salaries, benefits, and other overhead costs.

The biggest advantage that in-house support has is that it’s most likely an employee of your company. You know them, they know you, and they’re a part of your company’s culture. If you’re going to spend time, energy, and money to have a IT infrastructure in-house, you want to make sure it’s part of your culture.

There’s a common bond that can be established in that connection that might be hard to replicate with a third party. But there also exists the in-built risk in that relationship of creating a legacy, un-maintainable IT infrastructure if key individuals were to leave the organisation.

Finding the right managed services provider

Managed IT service revenue will surpass $200B by 2023 in total market value. It’s hard to decide when to invest or run an it team in-house.

Manage service providers (MSPs) can manage, monitor, and manage your IT. They have a pro-active approach to prevent problems from happening in the first place, and it’s important for businesses to have a strategic IT roadmap. You need an MSP who has a strong record in IT services.

Is your managed service provider customer-focused?

I recommend hiring an MSP that understands and has a track record in your industry.

Building an in-house team can be a long and costly process. The ideal MSP can help reduce costs, increase efficiency, and enhance your daily operation.

Do they set plans to meet your budget?

A good MSP will personalise their services based on your business requirements and your budget. They should ask the right questions about your business to demonstrate they have a desire to find your perfect solution.

Do they understand your industry?

MSPs are required to be aware of industry-specific regulation to maximise your potential. If the customer is not sure about how the business is run in your industry, it will result in legal trouble.

Does the managed service provider have a proven track record?

The answers can be found through case studies/testimonials or by contacting current customers. A strong commitment to receiving and implementing customer feedback is key.

Is IT security one of their top priorities?

IT security is a key concern in MSPs. You need all the important data and information about your customers to keep them protected as soon as possible.

Do they offer remote and onsite support?

Does the MSP make a commitment to provide support whenever required. You could have serious downtime. Downtime means losses in profits and a 24/7 it department is a key differentiator.

In conclusion: how important is a strategic & pro-active IT approach to your business?

IT Technology is moving at a fast pace and it’s important that we keep up with technology so we can provide the best customer service to our clients.

If you don’t think about a business IT strategy and don’t proactively take care of it, then the there is a giant hole in your overall business strategy.

It would be like when you’re driving and you don’t know the destination.

The biggest challenge in taking an approach that is pro-active and strategic is the lack of complete knowledge. It usually takes weeks or months to get to a point where the IT pro has a complete understanding of the network and IT infrastructure to go off of.

TechBrain is a trusted team of IT experts that can fill that proactive IT role for your organisation. With 20 years of experience in the Australian market, and 100’s of successful businesses supported, they take the hassle out of IT management.