How managed services can improve my bottom line

Insights from CompTIA’s IT Industry Outlook Report portray enterprise digitization as a critical economic factor in the business environment. The report also reveals that tech services and software products amount to nearly half of spending in the U.S. tech market. You would expect IT expenditure to lean more towards hardware and labor instead. But that is not the case due to new trends in tech adoption, such as service-based products and outsourcing labor to managed IT services.

Technology is the backbone of modern trade. IT resources simplify and automate essential business operations, cutting costs and maximizing profits. But tech is only as good as how efficiently it is utilized. Here is how working with a managed IT partner helps your business optimize its IT performance while keeping overheads low to improve the bottom line.

Lower overall IT infrastructure costs

Outsourcing IT management helps reduce your IT costs on three major fronts. First, your hardware and software capital investment goes down. Depending on the terms of service, the MSP can provide and host some of the equipment and software tools you need. This subsidization lessens the financial burden of building the initial IT infrastructure.

Secondly, a managed IT provider takes up the responsibility of monitoring, servicing, repairing and updating your IT systems. This eliminates the need for a redundant in-house IT support team. Onboarding and retaining employees cost a lot more than hiring independent contractors.

The third way is intangible but still relevant in many respects. With an MSP on your side, you have unlimited IT support and consultancy from business tech experts. The MSP can help you achieve strategic IT goals by offering expert advice on IT purchases and systems refinement. From an outsider’s perspective, the MSP is able to point out IT inefficiencies you never realized.

Stabilize your IT spending

You only pay a fixed monthly subscription for managed services, regardless of the value of services rendered in each month. This payment model is predictable and consistent, stabilizing the IT budget. In the traditional in-house IT management style, spending soars during software upgrades, emergency repairs and routine maintenance, and flatlines when systems are running smoothly. Random fluctuations in expenses cause accounting headaches and chip away at the profits.

Increase workplace productivity

A managed IT provider can improve your workplace’s efficiency and productivity in a number of ways. Remote round-the-clock IT monitoring and proactive support minimize downtime. Unexpected IT outage can bring your entire enterprise to a standstill with costly repercussions. Moreover, maintaining healthy IT systems prevents everyday frustrations in the workplace, allowing employees to do their best work.

Also, partnering with an MSP frees your staff from mundane IT tasks so they can focus more on core business interests. Instead of decommissioning your old IT team, you can redirect its expertise and skills to high-value tasks. Narrow specialization brings out the best in talented employees.

Ensure IT systems compliance

Data protection and privacy standards have taken center stage in efforts to protect both businesses and consumers from rampant cybercrimes. All organizations involved in collecting and using consumer data are expected to comply with various industrial data security standards and legislation. In the U.S., there are several federal, state and international laws enforcing acceptable risk levels and security merits.

MSPs bundle IT security with their service suites. Managed security is customizable to meet each  of your IT security goals and compliance requirements. The particulars of security compliance can be confusing and difficult to understand, let alone devising measures to satisfy their stringent conditions. What’s more, noncompliance attracts fines, prosecution and can even lead to suspension of business permits. With a managed IT partner, you never have to worry or spend extra money on compliance.

Improving your bottom line requires the business to streamline production by eliminating inefficiencies and unnecessary expenses. Working with an MSP helps you cut costs in areas that really make a difference. And, on top of that, it optimizes workflows and productivity.