Companies have long understood the benefits of hiring outside professionals to handle certain business functions. At its core, it makes financial sense to focus on your core competencies and outsource other functions to create organizational efficiencies.

However, more and more companies are hiring managed services providers (MSPs) to provide computer and asset management, cyber security, cloud computing services, disaster recovery planning, cloud computing, end user support, and more. They’re realizing a number of benefits from these partnerships. Why is this the case?

Accelerating Pace of Change

Technology seems to be progressing at an accelerated pace, particularly within cloud computing. Startups and SMBs are constantly in peril of falling behind larger competitors and losing the ability to compete on a level playing field. They simply don’t possess the resources to keep up with this pace.

MSPs can provide that expertise in, and awareness of, new tools, technologies, and infrastructure to help maintain a competitive edge. Their ability to provide high-speed resources means that companies can keep up with industry advances. This can also help eliminate inefficiencies, reduce time to market, and improve productivity.

Scarcity of Technical Resources

Most in-house IT teams face ongoing time and resource challenges, as they’re busy keeping the organization running while trying to innovate and stay on top of new technologies. It can be difficult, if not impossible, to add the challenges of dealing with new opportunities or changing business dynamics to their workload.

One option is to recruit and hire additional team members to support your IT department. However, recruiting top talent is more competitive than ever. Plus, you still have to spend the time and resources to train new staff while not taking time away from your current staff.

The solution to both problems is to work with an MSP to manage the added workload. They can provide the technical resources and expertise needed to take on new challenges and help manage busy stretches in your schedule. And with their experience, they can often jump right into supporting your team without spending time to train them.

Cost Predictability

As a business grows, so will its operating expenses, including investments in IT systems and infrastructure. It can be difficult to predict these costs, as they can fluctuate due to breakdowns in hardware, shifts in maintenance requirements, and unplanned repairs. There will also be a need to hire and train IT staff to keep up with business growth.

Partnering with an MSP enables organizations to budget for a relatively fixed monthly investment for those services. These expenses can be combined as a single and fixed set of operating expenses. While the scope and breadth of the provided services can shift, the costs will remain predictable.

Working with an MSP also means no need to worry about sunk costs, such as employee salaries and training, office upkeep, insurance, maintenance, and related expenses. These financial resources can be deployed to support and grow other areas of the business.

Time to Market / Scalability

If you decide to hire and train new staff to help manage your increasing IT needs, their ability to contribute directly to supporting a project or launching a product will typically be measured in months. Startups and SMBs cannot afford to waste time getting to market or scaling their business, when time is of the essence.

Bringing in an experienced MSP enables organizations to “hit the ground running” as soon as they are contracted, reducing the time to get started from months to days. MSPs with cloud computing expertise can bring in more high-speed resources, which will eliminate inefficiencies, improve productivity, and reduce time to market.

Compliance

Working with client data typically means an obligation to meet strict legal standards for integration with IT initiatives. This means ensuring compliance with the Health Insurance Portability and Accountability Act (HIPAA), the Sarbanes-Oxley Act (SOX), the General Data Protection Regulation (GDPR), and other industry-specific legislation.

It can be a challenge to stay informed of the specific rules related to privacy, reporting, and security. This is another reason to work with MSPs, who typically possess the deep expertise and knowledge to ensure you operate within the regulations.

Conclusion

Working with an MSP makes it easier to focus on your core competencies and improve the efficiency of your current services. It also enables you to take advantage of existing technologies, get to market more quickly, take control of your costs, and ensure regulatory compliance.

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