Why are SMBs outsourcing IT to Managed Service Providers?

Apr 2010

Why are SMBs outsourcing IT to Managed Service Providers?


Source: Flickr user: hoyasmeg

Why are many small and medium businesses outsourcing some or all of their IT needs to Managed Service providers? There are many reasons and they are dependent on the needs of the SMB as well as the offerings of the MSP.

What does an SMB look for in a Managed Service Provider?

  • IT Planning and Strategy
  • Comprehensive IT delivery
  • Service Delivery Levels
  • Reduced Risk and increased continuity
  • Cost reductions
  • DR planning and readiness
  • The latest in certifications and training

What are the benefits realized by the SMB who outsources to an MSP?

  • Better use of IT department, focusing on emerging technology and planning.
  • Reduce Expenses- system Administration, costly downtime for upgrades and patching takes resources and money, which could be saved and applied to future plans.
  • Increased reliability and performance.
  • Competitive Edge- focusing on business needs and not wasting resources allows for a better position to the competitor that is still saddled in the upgrade, help desk, patch nightmare.
  • Immediate access to the best technology and resources. MSP data centers have the newest and most efficient technologies, allowing customers to scale and grow easily into new and emerging technologies without having to purchase additional and costly products.
  • Ability to use the MSP for Disaster Recovery as well as traditional outsource IT.
  • Reduce costly training and certifications. The MSP has already invested heavily in these certifications. The savings to the SMB could be significant.

When considering outsourcing IT to a Managed Service provider, the SMB client needs to first do some internal evaluation. Measuring true costs of system administration, upgrades, patching, installation, asset management, system downtime, salaries and training are some areas that allow for a cost comparison. Can they save money, increase reliability and better allocate those freed up resources toward the future? If yes, than the SMB owes it to themselves, their customers and their bottom-line to explore the option of an outsourced IT model with a qualified, reputable and highly skilled Managed Service Provider. 


Image source: Flickr User: Hoyasmeg / James Emery 

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