Is Outsourcing IT Right for You? An In-Depth Look at Managed Service Providers and What They Do

Is Outsourcing IT Right for You? An In-Depth Look at Managed Service Providers and What They Do

Imagine having a professional IT department at your fingertips but without the overhead—welcome to the world of Managed Service Providers (MSPs). By outsourcing IT tasks to an MSP, companies and small businesses can focus more on their core business objectives without the burden of managing technology issues.

But what exactly does partnering with an MSP entail and is it right for you? And, more importantly, what can it do for your business? This in-depth guide will explore the essential elements of managed IT services: what they include, how much they cost, what they do, and what you can expect when you partner with an MSP. 

Click to Jump Ahead:

• What is included in managed IT services?
• How much does it cost to use a managed IT service provider?
• What can I expect from a managed IT service provider?

What is included in managed IT services?

Let’s unpack the suite of services that an MSP brings to your business.

Round-the-Clock Monitoring

Your IT infrastructure never sleeps, and neither does an MSP. If a potential issue is detected at 2 AM, instead of waiting for the morning or for someone to stumble upon the problem, an MSP’s monitoring services identify and resolve the issue. Moreover, round-the-clock monitoring means that performance bottlenecks and system irregularities are immediately caught and addressed. 

Network Efficiency and Cloud Services

As your business grows, so do your network and cloud needs. That’s because the more your operations expand, the greater the demand on your systems to handle increased data, more complex processes, and higher traffic volumes. MSPs optimize your network’s performance by deploying advanced routing techniques, bandwidth management, and load balancing to maintain high-performance levels even under increasing loads. 

Cloud services offered by MSPs offer scalability and flexibility for your business. This way, you can increase storage, enhance computing power, or ramp up your security measures with the help of an MSP. This adaptability is vital for handling growth spurts or seasonal fluctuations in business activity. 

Compliance

Each business is unique, and so are its IT needs. Beyond the technical setup, compliance is another critical area where MSPs provide invaluable support. As businesses grow and evolve, so do the regulatory landscapes in which they operate. Non-compliance can lead to severe penalties, legal issues, and damage to your reputation. MSPs stay abreast of the latest regulations affecting your industry and ensure that your IT systems comply with these legal requirements. 

This is especially important for the healthcare, finance, and education industries, which heavily regulate data privacy and security. For instance, an MSP can help implement secure data handling practices that comply with standards such as HIPAA for healthcare or GDPR for businesses operating in or dealing with the European Union

Cybersecurity

Between 2014 and 2022, cyber-related crimes reported to the Canadian police saw an alarming increase of approximately 387 percent. In 2023, the financial repercussions of cybercrime incidents in Canada were estimated to be around $3.82 billion U.S. dollars.

In recent times, high-profile cyberattacks have targeted large Canadian retailers, critical infrastructure, and even municipal systems like the City of Hamilton

These incidents underscore a crucial point: cybercriminals target vulnerabilities, not specific types of victims. Whether it’s a sprawling corporate network or a small business server, the objective remains the same — to exploit any available weak spot.

MSPs provide comprehensive cybersecurity services that include advanced firewall and antivirus software, intrusion detection systems, and ongoing cybersecurity training tailored for your staff. They conduct regular security audits and penetration tests to ensure your defenses meet current standards and are prepared for emerging threats.

Read Next: Cybersecurity Year in Review 2023

How much does it cost to use a managed IT service provider?

So, you’re considering taking the leap into managed IT services, but a nagging question keeps you up at night: “How much is this going to set me back?”

Breaking Down the Pricing Models

Managed IT services don’t come with a one-size-fits-all price tag, and that’s part of their charm. Here’s a rundown of the most common pricing models:

1. Per-User: This model charges based on the number of IT service users. It’s straightforward and scalable, which means as your team grows, you know exactly how much your costs will grow too. Perfect for businesses with employees who use multiple devices.
2. Per-Device: Here, charges are based on the number of devices monitored and maintained by the MSP. This could include workstations, servers, mobile devices, and printers. It’s a transparent way to budget if you have a stable count of devices.
3. All-Inclusive: Want to avoid surprises? The all-inclusive model offers a flat fee for all the IT services you can consume. This can be a budgetary breath of fresh air for small businesses that need a predictable monthly cost for financial planning.

Read Next: 5 Ways to Optimize Business IT Infrastructure for Maximum Efficiency

Factors Influencing the Cost of Managed IT Services

Several factors can tweak the cost dial on your managed IT services, including:

• Service Levels: Like ordering from a menu, more services mean a higher bill. Advanced cybersecurity, 24/7 monitoring, and on-demand tech support might increase costs, but they also provide deeper peace of mind.
• Business Size: Generally, the larger the business, the more resources it requires. Hiring more employees or expanding network infrastructure can raise costs not only because more is at stake, but there is also more to manage.
• Additional Requirements: Need specialized compliance for healthcare or finance? Custom software support? These extras will influence the final cost as they require specific expertise and tools.

What can I expect from a managed IT service provider?

Once you’ve decided to bring a Managed Service Provider on board, setting the right expectations is crucial for forging a successful partnership. It’s like adding a new member to your team, and just as with any key player, there are certain expectations you should have. 

Standard Expectations From a Managed Service Provider

1. Reliability: An MSP should be your technological rock—solid, dependable, and consistently operational. They are responsible for ensuring that your IT systems are always running, minimizing downtime, and maintaining continuity in your business operations.
2. Responsiveness: When issues do arise, speed matters. Your MSP should have a proven track record of quick responses and even quicker resolutions. Whether it’s a minor glitch or a major outage, expect a swift action plan and clear communication throughout the process.
3. Expertise: MSPs are the IT experts, so you don’t have to be. This expertise allows them to foresee potential issues, act preemptively, and tailor solutions that best fit your particular needs.

Partnership Dynamics with Your Managed IT Service Provider

Here’s what you should expect in the partnership dynamics with your MSP:

1. Communication: Expect the communication protocol to outline how and when communications will occur, keeping you in the loop on all significant matters. This includes access to key contacts within the MSP who understand your business and are committed to your success.
2. Custom Solutions: Your business is unique, and your IT solutions should be, too. A top-notch MSP listens to your specific challenges and goals. They tailor their services to fit your requirements rather than offering generic packages.
3. Regular Reporting: Transparency is key. Regular reporting on your IT status, incident responses, and the overall health of your systems should be standard. These reports keep you informed, help build trust, and provide peace of mind that your IT is in good hands.

Remember, a great MSP doesn’t just support your business—it enhances it. That’s what makes this partnership one of the smartest investments you can make in your company’s future.

Read Next: 5 Common Mistakes Companies Make When Implementing New Technologies

Are managed IT services worth it for my business?

Your employees can’t work if your technology isn’t working. The primary cost of an MSP covers proactive monitoring, cybersecurity defenses, cloud services, and more. Now, compare this to the cost of IT failures—downtime, data breaches, and the delightful chaos of system outages. 

According to one survey by CompTIA, 50% of companies who engaged an MSP saved 1-24% in annual IT costs, 33% saved 25-49%, and 13% reported savings of more than 50%.

So, is the juice worth the squeeze?

Absolutely—if the juice is a well-oiled IT machine that boosts efficiency, fortifies security, and supports scalable growth. Then, it’s definitely worth the squeeze. After all, the consequences of IT failures extend beyond immediate financial losses, including disrupted operations and damaged customer trust, which can be devastating for any business.

If you’re considering managed IT services, or if you’re feeling overwhelmed by current IT challenges, contact one of our experts today for a personalized consultation.