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Why CIOs Are Increasingly Turning to Managed Service Providers (MSPs)

Jan 12, 2022 BY DATAPRISE

Why CIOs Are Increasingly Turning to Managed Service Providers (MSPs)

Businesses of all sizes are prioritizing investments in technology, with 38% of companies now leveraging MSPs to manage more than half of their IT needs, which is an increase from 25% the year prior. It's no surprise, as most growing businesses prefer to focus more on their core functions and not the hassle of maintaining an in-house IT department. From leveraging managed detection and response services (MDR) to utilizing strategic consultants to develop a comprehensive IT disaster recovery plan, there are many benefits to using an MSP.

In the past, companies thought the cost of outsourcing their IT services was too expensive and, therefore, viewed technology as a “cost center”, or the “cost of doing business”.  However, when properly implemented by a qualified IT partner, streamlined IT services becomes a business differentiator. This allows for agile growth to match the pace of your business, effectively making IT a revenue generator that helps your business win.

 

Why Are CIOs Turning to MSPs?

 

It Improves Their Bottom Line

One of the biggest and most talked about MSP benefits is the impact on your bottom line. By outsourcing your IT functions, your business can often see a return on investment (ROI) based on a careful evaluation of the total cost of fully burdened salaries versus the monthly outsourcing cost alone. Partnering with a MSP allows you to reduce the relatively high-fixed cost of an in-house team, which does not always run at full capacity but is paid as though they are, to an oftentimes much lower variable cost determined by the exact services you receive. When outsourcing IT functions, the MSP removes the unused capacity, and most likely delivers a fixed price model for charges. This arrangement typically means more reliable and much lower monthly costs that provide a better bottom line for your business.

 

It Boosts Success Through Strategic Initiatives

Regardless of whether you fully outsource your IT department or just certain components, one of the greatest benefits is the ability to focus on IT strategy to help give your business a competitive advantage. If you choose to outsource some of the more time-consuming duties, such as network monitoring or end-user support, your internal IT team can focus on aligning your IT initiatives with your business’ strategic goals. Additionally, well-rounded MSPs provide services such as strategic consulting and vCIOs/vCISOs to assist you with your short- and long-term IT objectives and help your business win with IT.

 

It Maximizes Efficiency with a Team of Experts

When partnering with an MSP, you are not just hiring another IT department member; you are hiring a team of IT experts that have a broad and extensive set of pooled experiences, certifications, and knowledge base of existing and upcoming technologies. An established MSP can use their knowledge to help create a tailored solution designed specifically for your business that improves efficiency and helps grow your business’ success. Additionally, because MSPs are held accountable through Service Level Agreements (SLA) for their level of work, they utilize industry-best practices to ensure established processes and workflows are in place. This means incidents are quickly identified, resolved, and reported which translates into increased uptime for your business.

Outsourcing IT can be complicated, but has many benefits for your organization if you select the right partner. Ensure you have a comprehensive list of the IT needs you require, and that the services the MSP provides align with your overall business goals. Contact us today to learn more about the benefits outsourcing IT can have for your company.

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