Managed IT services are something many organizations are considering, and they wonder what the pros versus the cons might be. Managed IT services mean that a third-party contractor provides a task related to information technology.
There is a wide variety of options as far as the specific managed IT services a business might use, and basically, the overall goal is to remove some or all of the IT burden from the customer and put it on a service provider.
Managed IT services require the customer to pay a monthly fee so they can predict their pricing and then focus on other areas of their business instead of IT management.
There can be advantages to managed IT. For example, one report showed integrated DDI solutions produced a return on investment of up to 193%. DDI stands for the integration of DNS, DHCP, and IPAM which is IP address management. DDI is the foundational core of network services for communication that occurs over an IP network.
While the specific pricing model for managed services depends on the provider, it can follow an all-inclusive model or be based on the number of users or devices.
It’s important to make the distinction between a managed IT solution and outsourcing IT services when you have an issue. These are very different models and services.
With managed IT, it becomes a partnership where they’re consistently working with and for your company to keep things running smoothly and efficiently.
The pros and cons of managed IT services to consider are highlighted below.
Pro: Personalization
With a managed IT service, it gives you the opportunity to receive customized and personalized service. If you have simple needs that can be addressed easily, you can pay accordingly. The same can be said if you have very complex IT needs.
There’s not only personalization in the available services with managed IT but also different payment options that can grow with your company as necessary, but you’re not paying for what you don’t need at any given time.
Con: Miscommunication
Modern businesses outsource more than ever before, and it makes a lot of sense for them to do so in terms of budget and functionality. However, anytime you outsource anything then you’re giving up a level of control. You’re also running the risk of miscommunication.
Outsourced service providers aren’t in your office day-in and day-out. They may not understand some of the smaller things, and there is room for miscommunication in these situations.
Knowing this risk exists can help you proactively work on alleviating it, however.
You have to ensure that you’re on the same page with your managed service provider and that your priorities are always aligned.
Pro: Experience
A managed service provider is someone with in-depth experience in the areas of service they offer. You are getting access to experts, and hiring in-house for that kind of expertise might be expensive or even impossible.
You also get ongoing support from an experienced professional whenever you need it.
This reduces your hiring burden, and it also prevents you from putting too much on the plate of your employees, which can lead to burnout and high turnover rates.
With managed IT, you have the peace of mind of knowing that the experts you’re working with are also going to stay up-to-date on best practices and new technology so that you don’t have to worry about anything becoming outdated.
Pro: Lower Operational Costs
In nearly all cases, contracting with IT managed service providers are going to mean you can lower your operational costs, but you’re at the same time going to be able to improve productivity. You’ll gain access to the knowledge and expertise along with the relevant tools at a fraction of the costs you would otherwise be paying.
Con: Costs
While you might be lowering your general operational costs, managed IT still tends to have a high price tag. You will have to pay upfront fees and monthly fees, and the more your business grows and your needs evolve, the more you’re going to be paying. However, you do need to look at the figures and compare the costs of managed IT against the costs of doing it yourself.
You’ll very likely find that you do save money, but you still have to make sure you have room in your budget for the services.
You have to weigh all the different considerations of managed IT services, but increasingly businesses that are comparing the pros and cons find that managed IT is the best fit for their needs.