IT is one of the key ingredients for running a successful business in the modern world. For many organizations who fail to go digital – they run the risk of their day to day business operations falling into the wrong hands. Possibly the hands of a cyber criminal. However, with regular maintenance, security checks and system upgrades from a tech department – a company can stay afloat and remain secure. To keep up with in-house IT tasks, it can be costly and can become a drag on a company’s finances. Small businesses are most affected as their survival depends on how well they can manage operational costs over time.
What do you do if your in-house IT business expenses keep rising? Thanks to managed service providers, a business can explore the option to outsource their technical needs.
Below, we discuss in detail how a managed service provider (MSP) can help your business save money.
1. Save On Staffing
As a small business owner, your financial resources are limited and given that IT professionals are one of the highest paid members of a staff, getting skilled personnel may be very difficult.
When your IT functions are outsourced, you can save money that would have been spent on salaries, insurance, benefits and more. Over time, the costs can eat deep into your business’ finance. Since your MSP bills is a fixed monthly payment, you will be saving money by paying only for the services that you need. Being able to budget correctly also allows you to plan effectively for your business growth.
2. Training Expenses
IT knowledge dynamic – what is new now could be obsolete in the next few months. Thus, continuous training is mandatory for a team to stay up to date. However, this comes at a huge cost to your business. Depending on the IT specialty, the costs could range in tens of thousands per employee. By working with an MSP, you can sidestep these costs and concentrate on running your business more effectively. The MSP will ensure that its staff has the right skill sets to provide your business with the best services it needs. Your business will benefit from specialized IT skills without incurring training costs.
3. Quick Maintenance
The resolution of IT challenges may be delayed due to lack of skill or manpower. When a fault with your network is not fixed quickly, it can cause inconvenience to your customer and consequent loss in revenue. An MSP monitors your system 24×7 and will respond promptly to any problem that might affect your business.
4. Cyber Security
Hackers are searching for vulnerable businesses to infiltrate for financial gain. Security breaches not only disrupt your business but recovering from them may cost you a lot. Recovery may not even be possible in some cases and the business will be forced to shut down. It is, therefore, necessary to have skilled cyber security experts looking after your business. MSPs have a specialized team of IT security technicians who know the best ways to secure your network from criminals.
5. Regulation Compliance
Depending on the industry you operate in, there may be certain guidelines on how to run certain aspects of your business or handle customer’s data. These regulations usually evolve with time and it can be costly to keep up with current guidelines. There are usually penalties if your business if found not compliant. With an MSP, compliance is no longer your responsibility, the outsourced firm is expected to meet the necessary regulatory requirements.
6. Services Cost
When you require services such as data backup, recovery and remote access for your business and decide to go at it alone, you bear the full setup and maintenance costs which can add up in the long run. A MSP is able to provide or acquire such service at a scale which leads to a reduced cost for you.
Making a profit in your business requires that you master your margin and keep expenses down. While the idea of running everything in-house might sound great, it may not be the right fit for your bottom-line. When you hire an MSP, your monthly IT costs will be consistent. This will allow you to budget correctly and plan more adequately for the growth of your business.
To find out if outsourcing your IT to a managed service provider is the right fit for your business, please feel free to reach out to a SDTEK team member for more information.