What Are Managed Service Providers and How Can They Help?

What Are Managed Service Providers and How Can They Help?

IT teams are no longer solely responsible for hardware and software. As technology has evolved, so has the scope of the IT function. But you no longer need to expand the in-house IT department. Many businesses are now looking to Managed Service Providers. They can assist in supporting everything from networks to applications to security. They are also employed to assist with management, maintenance, and real-time support. Now, a lot of small to medium-sized businesses are asking the question, what are Managed Service Providers, and what benefit do they bring to the company?

Here are the answers that you and your company are looking for.

What Are Managed Service Providers?

IT Managed Service Providers refer to outsourced third-party companies that manage IT services. They can work either remotely or on-site. They don't work on a per-hour basis. The providers are paid on a subscription model. Enclosed in the price is a scope of work and service level agreement. There several types of Managed Services Providers, including the following:

  • 24/7 Management
  • Cloud server infrastructure and maintenance
  • Backup and disaster recovery
  • Security managed service providers
  • Custom application monitoring and management

The top Managed IT Service Provider will offer most, if not all, of these services. But it's not uncommon for some companies to have agreements with many providers.

How Can a Managed Service Provider Benefit Your Business?

Even though the needs for a Managed Service Provider will differ between businesses, the benefits of utilizing one are the same. With these kinds of providers estimated to grow to $257 billion by 2022, it's not a surprise that more businesses are investing large amounts of money in these kinds of functions.

But what are Managed Service Providers bringing to the table that in-house teams aren't?

Managed Service provider makes More Efficient

Many small businesses come with a tiny IT department that can get overwhelmed by the amount of work to keep everything running.

By partnering with a Managed Service Provider, the team becomes less burdened and can utilize the scale and experience of a larger group. It also provides these companies with extra IT assurance around disaster recovery, network security, and monitoring of services and applications.

Better Security and Compliance

Managing compliance can be stressful for many companies as guidelines continue to evolve year after year. This is especially the case when it relates to data security.
If a Managed Service Provider is monitoring your systems, this can reduce the pressure on smaller businesses if a security breach occurs. The provider will be responsible for tracking against any metrics, taking the stress away from the company.

Proactiveness to Maintain Systems

Most Managed Service Providers offer 24/7 monitoring and regular penetration testing. This allows for your applications and services to get patched quickly, so you don't have to wait for issues to happen that may shut down your operations and cost your company money.

Reduced Costs

If a member of your IT department leaves the business, then it's your responsibility to hire a new employee, train them up, and set up their equipment. But with a Managed Service Provider, you're only responsible for paying the agreed fee.

The provider is accountable for all on-costs. This means that you can reinvest the money you would typically spend on other areas.

Higher Return on Investment

Maintaining software and monitoring cybersecurity threats in addition to hardware, setup, software, and infrastructure costs can require a large number of people in your IT department.

However, instead of adding more people to the payroll, partnering with a Managed Service Provider for a set monthly fee can relieve some of the burdens.
As the company grows and the business becomes more successful, you can contact the provider to expand the services they provide. This allows the business to scale up easier and faster than it normally could.

Addresses Skill Gaps

It can be busy maintaining, monitoring, and updating all your computer needs. This can impact the IT team's ability to stay up to date with the latest information.

Managed Service Providers are regularly staying informed and completing the necessary training while continuing to meet the relevant tasks that you're paying them for.

Faster Scalability

As your business continues to increase in size, so will your IT needs. A Managed Service Provider can scale and meet operational needs faster to ensure that it meets the approved service level agreements. This frees up the internal IT department to focus on other initiatives that contribute to the continued success of the company.

Do You Need to Fire Your IT Department?

One of the common myths of partnering with a Managed Service Provider is that it means job losses for the in-house IT team. But this is generally not the case.
Most companies will provide all of the tedious tasks such as system management and maintenance to the Managed Service Provider. They will then use their in-house IT team to focus on the business's strategic goals. This can mean building more innovative products and services.

How Do I Get Started With a Managed Service Provider?

No one wants to spend their day making calls to multiple providers. The TARC Technology Solutions Marketplace provides a one-stop-shop for everything related to IT.
This includes hardware, cloud computing, security, networking, and Managed Service Providers in Austin. We even provide unbiased advice on a range of IT topics if you're still unsure what is Managed Service Providers and how they can be useful.

The team can also help you with designing and implementing your next IT initiative. Get in touch with the team today to learn more about how TARC Technology Solutions can help you and your business.