Why SMBs are Moving to Outsource their IT Needs to MSPs

Managed Service Providers (MSPs) have been enjoying a renaissance in their fortunes, with SMBs overhauling their IT strategies. We are seeing a distinct move from investing in in-house IT teams, one-off purchases and self-insuring IT business risk, and heading to outsourcing risk, and buying in consulting talent.

The provider of talent and expertise, is of course, the Managed Service Provider, but not all MSPs are equal – some can assume and mitigate IT business risk, others cannot. It really depends on the nature of the MSP as to whether they can deliver on your needs or not.

MSPs typically operate on a subscription model – you pay a fixed monthly fee, and they carry out IT tasks to a level the customer wants.

Typical MSP services include:

  • Bandwidth provision
  • Network services and security
  • VoIP and Unified Communications
  • Email
  • Social collaboration and file sharing
  • Virtual Data Center/Date Center services
  • Infrastructure management and security
  • Helpdesk support
  • Ad hoc consulting and project work

The size of the MSP will determine the quality and breadth of services they can realistically deliver. I recently had a conversation with a prospective new client, one we are looking to sign up on our MSP program, but who is also comparing us to another provider.

 

Simple research quickly disclosed that the other provider had a great looking website, providing a great presentation of their services. A simple Google search of the company’s address, however, demonstrated their “office” was the home address of the sole employee of this particular MSP. Upon asking some questions, it was quickly uncovered that they were in fact outsourcing the work being outsourced to them.

You can make of that what you will – but if you are concerned over who is actually performing the work on your account, you should be asking some penetrating questions and site visits.

Questions to ask your prospective MSP include:

  • How long have you been in business?
  • How many engineers do you have on staff?
  • What is the average length of time we can expect an engineer to work with us? (you are looking for stability and longevity – you don’t want a lot of turnover)
  • Do you operate your own Data Center?
  • How much experience do you have virtualizing data centers? Managing networks? Managing and installing Next Generation Firewalls?
  • What certifications and industry awards has your firm gained?
  • What vendors do you have on your roster?
  • Can you give me 3 client references in my industry?

Using an MSP allows for the development of business agility. This is because in-house IT departments are notoriously expensive to build and maintain for most SMBs, while at the same time, they rarely are adequately staffed with the breadth of expertise that is required to effectively manage the technology portfolio deployed by even a small, small business. Technology is just too broad a field an area of business expertise today for one or two staffers to properly have a comprehensive grasp of. A suitable MSP will typically be able to deploy multiple engineers and experts, with a range of skills and talents, and bring this collective expertise to bear on your challenges and issues.

Using an MSP also means you can maintain your focus on running your business. Unless you are in the IT business, IT is simply a tool for getting things done faster and more effectively. Outsourcing IT services means you are able to strip out the distraction of maintaining infrastructure and fighting IT fires.

A suitably resourced and experienced MSP will also be able to help you deploy the appropriate technology, and will also be abreast of developments within the IT arena. For instance, virtualization is creating more nimble and agile businesses, while also cutting costs dramatically – but did you know this, and if so, how can you leverage this for your own competitive advantage? An MSP should be able to bring to your attention cost-saving and efficiency technology developments directly to your attention and demonstrate how you can execute on these strategies to your business benefit.

Swift Systems is a leading provider of IT Managed Services for over a decade. We have clients in Maryland, including Baltimore and Washington D.C., including southern Pennsylvania, eastern West Virginia and northern Virginia. Our clients drive our service standards and growth, and we have a dedicated and long-serving team of engineers and specialists providing expertise on every facet of IT operations whenever and wherever it is required.

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