Managed IT Services: A Comprehensive Guide to Outsourcing Your IT
Every large corporation needs its IT tasks and processes fulfilled. When in-house capabilities are strained or specialized expertise is required, businesses turn to third-party organizations for help. That is when Managed IT Services come in.
1. What Do Managed IT Services Mean?
Managed IT services allow businesses to outsource their IT operations to a third-party organization, known as a Managed Service Provider (MSP). MSPs specialize in handling IT-related responsibilities.
- MSP Responsibilities: The MSP takes responsibility for the entirety or portions of a business’s IT systems, as agreed upon in a formal contract.
- Service Level Agreement (SLA): This defines the services furnished, the degree to which they will be offered (e.g., round-the-clock monitoring), and the metrics for measuring success.
- Pricing: MSPs typically charge a flat fee for the delivery of their services over a specific period of time, as outlined in the SLA.
- Modern Expansion: Cloud computing allows managed IT services to expand beyond physical regions through the adoption of SaaS (Software as a Service), IaaS (Infrastructure as a Service), and PaaS (Platform as a Service).
2. What is a Managed Service (MS) Offering?
A Managed Service (MS) is designed to handle the daily operation of specialized applications or IT functions. When done effectively, an MS acts like an extension of your IT Department.
| Benefit to Your Organization | Impact |
| Enables End-Users | Gives capability to company end-users for specialized applications. |
| Frees Up In-House IT | Allows your internal IT staff to focus on strategic IT programs and innovation, rather than routine maintenance. |
| Focus on Core Competencies | Frees your employees to focus entirely on your core business objectives. |
3. Key Benefits of Managed IT Services
Turning to a trusted MSP partner provides substantial advantages over relying purely on an in-house team.
- Free Up Internal IT Staff: By outsourcing back-end functions and complex, fast-changing technologies, internal IT experts can dedicate their time to projects that promote innovation and core objectives.
- Keep Pace with IT Expertise Demand: Companies globally struggle to fill specialized IT roles (e.g., mobile app development, cybersecurity). Outsourcing removes this pressure by giving you access to specialized, technically skilled engineers.
- Greater Scalability and Flexibility:
- Organizations find it more effective to start small, move up fast, and expand as needed.
- MSPs make it easy for enterprises to scale up or down depending on demand (e.g., a retailer increasing capacity around the holidays or a startup experiencing sudden growth).
4. How Much Do Managed IT Services Cost?
The price for managed IT service packages is typically based on a “per user, per month” model.
- Price Range: Service cost packages generally run from $99 to $250 per user, per month.
- Definition of “User”: A “user” refers to the employees who utilize technology to perform their job functions.
- Cost Determination: Where your company stands on the service cost depends entirely on the scale and scope of the services you require (as defined in the SLA).
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