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What Are Managed It Services: A Guide

May 22, 2019

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According to studies, the global managed IT service market could be worth over $250 billion soon. This is a figure that will increase significantly by 2022.

As this sector grows, the profitability of IT services will increase tremendously.

As a business, it makes more sense for you to prevent fires and capitalize on the proactive approaches than putting out fires.

When you do this, you will increase your margins, recurring revenue, scalability, and customer satisfaction levels. However, for this to happen, you need to have the right partnerships and business plan.

This article will provide you with a comprehensive guide on how to acquire unparalleled success from managed IT services.

What Are Managed IT Services?

Managed IT services is a solution that is delivered by IT service providers. It combines unlimited IT support and flat-rate fixed fee with proactive monitoring of infrastructure and workstations.

It is also a method of outsourcing IT operations to experienced service providers. These providers understand the specifics of what needs to be done. In most cases, they also assume the responsibility of a company’s IT and specific facets of their infrastructure.

Traditionally, the business relied only on break-fix services. Today, managed services have been proven to work faster.

The break-fix today will not work because there may only be a few self-taught technicians who can work on temporary fixes for recurring IT problems. Also, break-fix technicians only look at the problem at hand. Simply put, these technicians only put Band-Aids on wounds—even ones that need stitches.

They do not work to find solutions to future problems. Therefore, these seemingly quick fixes have the potential to cause many more problems down the line.

Benefits of Managed Services

Because of the failure of break-fix techniques, IT experts discovered the need to have more strate gic IT solutions. It is difficult to manage it internally because there are numerous devices and solutions with variant technologies.

Here are some more reasons why you need managed services:

  • 24/7 monitoring that reduces the issues that may arise such as network outages, printer disruptions, phone disconnections, and internet connectivity problems
  • Minimum downtime and reliable outlets that improve customer service delivery
  • Lower costs because MSPs monitor all operations proactively at a flat monthly rate
  • Aligns organizational outcomes and does a great job at reducing problems
  • Allows you to have strategic planning for all your systems’ problem
  • Peace of mind

Main Elements

Here are several elements that you need to focus on to integrate managed IT services as part of your business:

Calculate the Total Cost

When you want to move on to managed services, the first and most important step is to calculate the total cost of the IT managed services. Here, you must make sure that you include what you are currently paying for the IT support, the accounting cost for lost productivity, and the downtime you are facing.

For you to quantify, you must look at the total costs of the staff salaries in the organization. To do this, factor in how much inefficiency is costing your company each day.

At first, it may seem that the inefficiency is only 20 minutes. However, these add up quickly. You could easily be losing hundreds of dollars each month as a result.

You can also calculate downtime. Consider the amount of downtime you face each month and how much it is worth for your company.

For instance, if you are down 3 hours each month, how much is it worth to your business compared to your hourly salary range?

Executive Buy-In

As with all other additions to your business, the only way to integrate a service or product successfully is by making sure that it is used in all areas of your business.

It means that the managed IT services have to be fully embraced by the entire organization—from management to employees. For this to happen, you must focus on sales compensation, prioritize it over other service offerings, and fuel its revenue.

Sales compensation quotas and packages are a great way to incentivize the sales teams and sell management services. Your sales reps are likely to get extensive commission checks that are based on project sales.

You should also prioritize managed services over competing services. After your company shifts to the managed services, the sales team needs to fall back to selling the block and push back on the managed service solutions.

You also need to prioritize them when it comes to investing revenue on the product and service lines. The IT managed services also require you to invest money to succeed and attain intended goals.

Look For a Great IT Company

Once you have found a great potential company, it is a good idea to ask for an audit. You must make sure that you research properly so that you hire a company with high success rates.

Find one that is also familiar with your industry and whose requirements go along with what your business needs.

The audit will require the IT Company to review your entire IT infrastructure and systems. It will be intrusive, so you need a company you can trust. The good news is that it can be done on-site or remotely.

Complete the Onboarding Process

Ensure that the provider meets all your requirements. This means that you should not evaluate them on cost alone.

Find a company that will help improve your IT efficiency and increase productivity by reducing downtime. While onboarding, you need to change the passcodes so that the IT company can no longer access your systems.

Getting Started

There are numerous versatile options available. With businesses increasingly depending on technology, company ROIs are increasing.

However, this only happens when they hire a good managed IT services company. There are numerous benefits your company will reap from outsourcing IT services.

Visit our blog for more information.