Discovernet Blog

    Four Common Misconceptions about Hiring a Managed Service Provider

    Feb 26, 2019 1:11:00 PM The Discovernet Team Managed Service Provider, budget, Security

    More and more companies are making the decision to work with a Managed Service Provider (MSP) to meet their IT needs, and for good reasons. Consider the following assessment of today’s corporate IT departments:

    "Once serving as the sole provider of internal technology resources, IT departments are now exposed to competition from external providers. Once deemed a cost center, if not a money pit, they are looking to reframe their impact on the business as accretive, not dilutive. Once (and still often the case) hampered by multi-year investment cycles, they are looking for the latest tools and techniques to address the specific business challenges of today. 

    - Managed services and strategic outcomes, CIO.com 

    Any of this sound familiar? 

    This change in context, scope and purpose illustrates why many of today’s IT departments are utilizing managed services “to reinvent themselves, regain control over their technology infrastructure, and refocus their efforts on achieving strategic goals.” 

    “But wait!”, you say. “Aren’t MSPs too expensive for most businesses? What do they know about my market? And how can they be more responsive than in-house staff? Why would I trust someone else with my security?”

    There are a lot of misconceptions about the costs and benefits of Managed IT Services, and we hope to clear a few of them up today.

    Myth #1: It's More Expensive to Hire an MSP Than it is To Hire Internal Employees

    When you hire an MSP, you are essentially hiring a team of experts to deliver agreed-upon services at a fixed cost. When you consider the cost of hiring, training, and supporting the required internal employees to support the same level of service, an MSP will almost always come out on top.  

    When you hire an MSP, you are not responsible for salary, taxes, insurance, vacations, sick days, pensions, and all the other costs that come with employees, not to mention the opportunity costs associated with turnover and retention. Instead, you need only pay a flat fee on a monthly or quarterly basis, which helps not only to save money, but improves budgeting and cash flow, since many of your IT costs become operating expenses. 

    Various studies show that businesses who hire Managed IT Services save money – in fact, it’s one of the leading reasons companies give when asked why they made the decision to do so – a CompTIA survey of over 400 companies who have taken the help of MSPs reported that: 

    • 46% have reduced their budget by 25% or more 
    • 13% of the above cut IT spending by more than 50% 
    • 50% said they have cut annual costs anywhere between 1% and 24% 

    Myth #2: An MSP Can’t Understand My Business 

    Not all MSPs are the same, and those that deliver more than simple “break-fix” IT should be putting in the effort to understand your both industry sector and business goals. In fact, since many MSPs have experience working for clients across a broad range of industries, they can often provide valuable insight into trends and solutions being adopted and employed in your field. 

    But for this to happen, it’s important to understand communication is a two-way street. As we have mentioned before, communication is key – if you don’t regularly meet with your MSP to discuss your business challenges and goals, they won’t have much to go on. When you are looking to hire an MSP, be sure to ask if they have worked with organizations like yours and if they understand the key challenges unique to your market – and better yet, how they propose to solve them! 

    Myth #3: Response Time is Slower With An MSP  

    Businesses are often concerned about accountability – after all, it’s easy to track down a full-time employee in the office and get them to drop everything to address an issue (is it really?) But what happens when they head home for the day? Most MSPs can offer both on-site and off-site assistance, including 24/7 help desk support. 

    By providing remote support teams, MSPs can assist any employee, whether they are in the office, on the road, or even at home. Since most MSPs provide dedicated help desk staff, the speed and quality of service is often better than what can be obtained in-house, where IT staff may have to juggle multiple roles out of necessity. 

    Myth #4:  It’s Necessary to Keep Security In-House 

    This thought often conflates control with effectiveness. Outsourcing cybersecurity to an MSP can offer increased security through 24/7 monitoring, immediate threat response, strategic consulting, timely and consistent software and hardware updates, data backup, disaster recovery planning and more.

    That’s a lot to ask of an internal IT team, and it’s hard to match the high availability that an MSP can offer. 

    Want to Learn More? 

    Discovernet is dedicated to providing our customers with quality IT solutions and services including software systems, engineering, hardware maintenance and training. We have experience in designing and implementing proven IT solutions for clients in a variety of industries, and pride ourselves on delivering the best customer experience possible. 

    Is your organization considering adopting Managed IT Services? Or even changing providers? Why not drop us a line?

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    The Discovernet Team

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