As a Managed Service Providers (MSPs), customers look to you for everything from storage and backup services to network monitoring services. The explosion of cloud computing, big data, and the Internet of Things (IoT) also means customers are hungry for these ‘in demand’ services where they need your guidance. Whether it’s managing routine or next-generation IT services, MSPs need to find ways to deliver more value to customers without spending too much money too fast.
To get there, leading MSPs are discovering that outsourcing makes a lot of sense. Working with an outsourcing partner may include farming out services such as project management, contract support, billing, or the customer help desk, for example. When MSPs outsource these types of activities, they’re trusting contractors who have expertise and economies of scale to deliver them for less. MSPs don’t have to expend extra capital toward a company need which is not core to operations. Outsourcing can deliver several distinct advantages for managed service providers, such as an increase in operational efficiency, cost control, and improved service delivery, to name a few. Let’s take a closer look at why outsourcing is a smart move for MSPs.
- Avoid growing pains – As an MSP grows, there’s a continuous balancing act happening. Engineers and support staff are tasked with serving more people, while still delivering a very high level of service. Services may include things like account maintenance and IT support. Engineers are regularly asked to provide daily network and server maintenance and perform user requests, such as password changes and new user set-up functions. Customers also expect support beyond ‘normal business hours,’ which can also be a burden on internal teams. By outsourcing some of the ‘daily grind’ work to a partner and counting on them to deliver 24/7 support, MSPs can strike that critical balance between growing without the growing pains of diminishing service levels. This sustainable growth approach is also essential for MSPs looking to service larger customers with more complex needs.
- Focus on ‘in-demand’ IT services – By freeing up engineers and other support staff from lower-level reactive support tasks, MSPs can refocus efforts on higher-margin and ‘higher value’ services to customers. Giving your internal team the chance to work on strategic projects that will “delight” customers, will help MSPs differentiate themselves, while also increasing your team’s job satisfaction levels in the process. With a partner focused on billing, account management, and service desk responsibilities teams focus on developing strong customer relationships and find out what customer needs to look like. They can also identify new opportunities, plan for future requirements, and incorporate these into new services. New service offerings around security, big data, and analytics are all service areas where companies are looking for trusted MSPs to fill that gap.
- Keep costs in check – As a MSPs become that trusted IT service partner, they must walk a fine line between controlling costs and adequate spending on support and growth activities. This could include making investments in capital expenses such as servers or software, as well as investing in people resources. By utilizing a third-party to provide some of those equipment resources and a skilled workforce to manage these back-office functions, MSPs can optimize their profitability and growth rate. An outsourcing approach is practical because it shrinks MSPs need to hire, train, and retrain an in-house staff to support customers. In doing so, service providers can continue to scale their business and keep systems running to support the rollout of new solutions.
While providing support services is an essential part of any managed service providers business model, it’s also time and resource intensive. Doing it right can take attention away from business growth and adding new in-demand IT services. By partnering with a third-party to manage some of these support tasks, MSPs can also be more confident knowing their existing customers are well cared for and costs are in check.