In the last two blogs, “5 Ways to reduce IT Costs with Managed IT Services”, and “How IT Managed Services impacts a Company’s Brand”. We talked about the hard and soft costs associated with IT Services and how they can positively or negatively impact the bottom line. In this blog we’re going to talk about the efficiencies from Economies of Scale a Managed IT Services Provider or well run IT Department can bring to the business.
Managed IT services can reduce employee costs while improving performance in critical areas that impact cost like:
- IT Operations, Performance and Reliability
- IT Planning and Strategy
- IT Compliance and Security
Besides lowering IT costs in these of ways, using IT managed services can bring better value to your IT investment from enhanced efficiency and effectiveness. Some examples include:
Vendor Procurement and Selection
Equipment or application selection can be a grueling process; there are so many unknowns. Through vendor experience and relationships, a IT managed services partner may know the exact equipment or software you need and even procure it at a discount.
Transition to the Cloud
Most businesses and IT professionals realize the advantages of transitioning some or all of their processing and storage to the cloud. However, choosing the wrong provider or the wrong approach could be costly as well as risky. A good managed IT services partner will make the transition easier, and frequently they provide these hosting services as well.
Breadth of Industry Knowledge
While it is important to find a managed IT services partner that has experience in your industry and understands your business, they likely work with other industries as well. Most of us know the story of how Toyota revolutionized the car industry after Taiichi Ohno was inspired by a U.S. supermarket. Exposure to different paradigms can lead to innovation and breakthrough results. Your IT strategies shouldn’t be developed inside a bubble.
Many enterprises are stuck in a reactionary mode when it comes to managing IT infrastructure and networks. Most of their efforts are spent reacting to events – troubleshooting equipment when something breaks, resolving bottlenecks when they become intolerable, improving security after a breach, and replacing equipment when it becomes hopelessly obsolete. Always being behind the curve is costly and inefficient as well as difficult to change. Managed IT services providers know how to establish proactive capabilities so action is taken before a situation is critical or results in lost capability. This takes comprehensive monitoring and evaluation processes built on a breadth of industry experience and knowledge.
The reliance of enterprises on IT capability is well known (and previously discussed here). The percentage of businesses that fail after a catastrophic event is staggering. How well is your organization managing risk associated with IT infrastructure in creating backup and recovery systems and processes? Enlisting outside expertise to assist in developing, implementing, or reviewing IT risk assessment and abatement might be the most important insurance policy a business has.
Not having to do everything yourself and relying on experts where it makes sense creates the efficiency of scale that lowers total cost of ownership and operation.