During the days of low interest rates, some organizations took a scattershot approach to spending. They developed new products and services and piloted a wide range of projects, many involving new technologies. Now, organizations feel the need to take a step back and rationalize their products, processes and operations.
That’s smart, but many execs are rightfully concerned about taking this too far. According to the Gartner Business Quarterly for the first quarter of 2024, 52 percent of executives rank “overzealous cost cutting” as the top emerging risk. Cost cutting had a greater impact score than “higher borrowing costs.”
When cutting costs, it’s all too easy to overlook the value of some products and services. Managed services are a prime example. Organizations may focus on the line item in the IT budget and forget why they adopted managed services in the first place.
Your managed services provider (MSP) takes on the responsibility of monitoring and managing your IT environment. Unlike traditional break/fix services, managed services are proactive. The objective is to keep systems up-to-date and identify potential issues before they become real problems. The MSP also provides prompt, responsive support when problems do arise.
Let’s take a fresh look at the value of partnering with a qualified MSP.
Minimizes the Risk of Downtime and Business Disruption
When computer systems are down, business stops. Productivity suffers, and customer satisfaction plummets. According to various studies, downtime costs smaller organizations anywhere from $137 to $427 per minute. Managed services are designed to minimize downtime as much as possible and get systems back up and running quickly when problems occur. This adds up to substantial savings.
Responds Rapidly to Security Incidents
A security incident can be far more devastating than a system outage. In addition to causing downtime, the incident can result in data loss or theft, exposing the organization to regulatory fines and legal expenses. Security incidents also cause significant customer churn. No security tool or service can prevent all attacks. However, MSPs can detect security incidents and respond rapidly to minimize the damage.
Evens Out IT Costs
Unexpected IT expenses can wreck any organization’s budget. Most MSPs operate under a fixed monthly fee arrangement with specified costs for additional services. That makes it easy for organizations to budget for ongoing monitoring, management and support. Additionally, MSPs stay on top of needed system upgrades so organizations can plan well in advance for the expense.
Reduces the Burden on In-House Staff
Today’s IT environments are complex, and someone must manage the various components. An MSP relieves in-house staff of that burden. In a fully outsourced arrangement, organizations don’t need to hire and retain skilled IT professionals. Many MSPs also offer co-managed services, handling day-to-day administrative tasks so the in-house IT team can focus on business-enabling initiatives. Either way, managed services directly benefit the bottom line.
Enables a More Strategic Approach to IT
It’s difficult for most business leaders to stay abreast of the latest technological advances and separate potential from hype. MSPs understand what works and what doesn’t, and how to minimize risk when deploying IT solutions. They also help drive long-term ROI by optimizing performance, reliability and security. This enables organizations to take a more strategic approach and capture more value from their IT investments.
The Business Value of Partnering with Verteks
Verteks has delivered managed services for almost thirty years. We offer a wide range of solutions and services that are tailored to each customer’s needs. We’d love the opportunity to show you how partnering with us can drive business value for your organization.