Managed information technology services are rapidly becoming one of the hottest solutions in business today because it dramatically improves an organization’s profitability, frees up internal resources and offers a unique competitive advantage.
Simply put, managed IT services are designed to assist companies in maintaining and supporting their network and IT infrastructure with the assistance of an outsourced managed services provider.
Types of services may include remote network monitoring, programming and reporting, firewall monitoring, intrusion detection, preventative tasks, disaster recovery, data backup and help desk support.
Here are eight reasons why small to midsize businesses need managed IT services.
1. Dependence on IT. Almost all businesses have become more dependent on computer technologies in the past few years. And it’s a rapidly changing environment. Every business has become dependent on its IT infrastructure to perform at a high level, while effectively delivering its products or services. As a result, it has become more difficult to maintain the expertise to properly deploy, manage and monitor this new technology, especially as a business evolves.
2. Complexity. The fact that this new technology is new makes it more difficult for the average employee to understand and use effectively. The level of demand and sophistication from today’s businesses are driving up complexity. Distinct disciplines or specialties are emerging in a variety of technology related areas such as telephony, desktop, network, application and database support. The breadth and depth of technology an organization requires immediately places the resources at small to midsize businesses at a distinct disadvantage.
3. Insufficient solutions. Traditional support options such as a one-man IT consultant, or a one or two person in-house IT department cannot effectively handle the occasional network breakdowns that are bound to occur. This is especially true when compared to a team of external resources that proactively monitor the installed technology at all times.
4. Lack of process. A recent study by market research firm International Data Corp. reinforces the notion of lack of process when it found 78 percent of all IT downtime is caused by change. If you could simply eliminate change from the computing environment, you would substantially decrease the risk. Unfortunately, most businesses lack the procedures, documentation standards and scope of work, which often results in major disruption and downtime.
5. Increased use of technology. Increasing use of computers, new software and procedures, often leads to increased complaints and loss of productivity. Typically, when network or desktop problems arise and escalate inside a company, the response time of the one-man shop or internal staff is quite slow.
This dramatically increases employee complaints and lowers productivity. In many situations, employees have to wait in line to receive help. As a result, the downtime and morale will impact the organization’s bottom line as well as its ability to meet its customers’ needs.
By implementing a managed IT services program, the demand on internal IT resources are lighter and can now be utilized for other purposes.
6. Controlling costs. During these challenging times, the IT budget is frequently reduced. In a recent survey of nearly 950 IT managers at companies in North America and Europe, nearly half of the U.S. respondents said they have already cut their IT spending budgets. Unfortunately, a cut in IT spending doesn’t mean there is a cut in demand for services. This adds tremendous stress and pressure on internal departments to support the same amount of work with fewer resources.
7. Technology erosion. Computer systems must be maintained just like any other systems used within a business. Vehicle fleets, manufacturing equipment and the physical plant, have all moved to a preventative approach. If a company does not implement this preventative maintenance strategy for its technology components, disaster might be the unpleasant and unprofitable result.
8. Compliance. Finally, the technology utilized within an organization in most cases must meet specific compliance standards. For example, a company’s business processes supported by technology might need to comply with Sarbanes-Oxely, Health Insurance Portability and Accountability Act, Gramm-Leach-Bliley Act and other regulatory standards. Most companies don’t have the resources to fully understand and comply with all the detailed requirements of these regulations.
When considering managed IT services, here’s a key question to ask: Does managing and monitoring my IT infrastructure have anything to do with the core competency of my business? If the answer is no, outsourcing might be a good option.
Scott Jones is the owner of Marshfield-based Liberty Technical Solutions LLC. He can be reached at sajones@libtechsol.com.