Managed services was born out of a need to outsource responsibility for monitoring and maintaining certain services, or more often specialized appliances such as on-prem data warehouse solutions or rather cumbersome ETL servers or network configurations. Between 2005 and 2006 this outsourcing practice became what it is today, IT managed services (MS). <\/p>\n\n\n\n
IT MS has undoubtedly changed and evolved over the years, particularly in the technical capabilities that most MS providers offer. But being in the MS industry for more than a decade, we have consistently observed one particular issue. <\/p>\n\n\n\n
Many of our clients, despite having invested in the latest tooling, built internal MS teams or secured a contract with a reputable 3rd party provider of IT MS, still suffer from performance issues and in many instances, have declined. <\/p>\n\n\n\n
The challenge is not in the technical capabilities. It\u2019s in the mindset, approach and applied model of IT MS leaders. To understand this, let\u2019s first look at the IT outsourcing market and what it offers. <\/p>\n\n\n\n
IT outsourcing is the practice of contracting out various IT functions or services to external providers, rather than handling them in-house. This can include a wide range of services such as software development, infrastructure management, network operations, technical support and cybersecurity. <\/p>\n\n\n\n
IT MS is one of the most common IT outsourcing models \u2013 the other being professional services (PS). Let\u2019s take a look at both models and what they stand for. <\/p>\n\n\n\n
Managed Services<\/strong><\/p>\n\n\n\n Managed services involves outsourcing the responsibility for maintaining, monitoring and managing certain IT functions or systems to a third-party provider. This can include services such as network monitoring, cloud management, data backup and recovery, cybersecurity, and more. Managed service providers (MSPs) typically offer these services on a subscription or pay-as-you-go basis, providing ongoing support and management of IT infrastructure and systems. <\/p>\n\n\n\n Below are six of the most valuable services for organizations seeking MS support: <\/p>\n\n\n\n Managed services can combine a wide range of tasks into one service, thus eliminating headaches associated with organizing multiple vendors or maintaining this wide skillset in-house. But it also creates more time for the company’s core team to focus on new projects and further drive the business. It is also important to note that every MS contract comes with SLA\/SLO which guarantees the speed and reliability of the support you are getting, and it frees up your more valuable and experienced resources so that they can focus on further developing your business.<\/p>\n\n\n\n Professional Services<\/strong><\/p>\n\n\n\n Professional services, on the other hand, involve outsourcing specific IT projects, tasks or expertise to external consultants or firms. This could include services such as software development, system integration, IT consulting, project management, and specialized technical expertise. PS engagements are often temporary and project-based, with the external provider delivering a specific outcome or solution within a defined timeframe.<\/p>\n\n\n\n Looking at the market and its needs, below are five of the most impactful PS categories for any company:<\/p>\n\n\n\n When we look at managed services and professional services, the most significant difference is the timeframe in which they operate and the scope of work.<\/p>\n\n\n\n Is IT managed services so outdated that it should be fully replaced with professional services? No, and in fact, quite the contrary. Both models have their value and deliver substantial benefits. The challenge is in the mindset previously mentioned, and it lies in thinking these services don\u2019t or should not overlap.<\/p>\n\n\n\n The biggest challenge across industries over the past few years is the speed in which companies need to tackle their problems or jump on opportunities. The best way of doing that is creating synergy between managed and professional services. In short, having a team that can do both.<\/p>\n\n\n\n But for this synergy to work, it needs to be set up correctly, and that goes beyond the technical skills. Your business needs to change from being service-centric to a client-centric organization. Again, this requires a change in mindset from \u2018we are a service provider\u2019 to \u2018we are your partner and we will help you in your development.\u2019<\/p>\n\n\n\n This is the MS provider most companies need in the age of overwhelming and constantly changing data \u2013 an IT MS provider dedicated to keeping their business on the cutting-edge and ahead of the competition.<\/p>\n\n\n\n The new model of IT managed services needs to put the focus on the client. Success should be measured through the success of the client and how much the service you provided helped in achieving that. SLA and SLO are the measures of your ability to follow the rules of a contract, but not the true value and quality of your service.<\/p>\n\n\n\n As an additional motivation for this new way of thinking, let\u2019s also remember that acquiring a new customer can cost five times more than retaining an existing customer. Increasing customer retention by 5% can increase profits from 25-95%. The success rate of selling to a customer you already have is 60-70%, while the success rate of selling to a new customer is 5-20%.<\/p>\n\n\n\n As a well-established or emerging\/growing business in the market for an IT MS provider, here are the key benefits realized from customer-centric MS, all of which you should never compromise on:<\/p>\n\n\n\n Our approach to MS is measured by the success of our clients, through the projects our experts are leading. To learn more about how we can transform your business, contact us today.<\/p>\n\n\n","protected":false},"excerpt":{"rendered":" Managed services was born out of a need to outsource responsibility for monitoring and maintaining certain services, or more often specialized appliances such as on-prem data warehouse solutions or rather…<\/p>\n","protected":false},"author":5,"featured_media":47113,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[116],"tags":[304],"related_service":[77,83],"related_industry":[62],"class_list":["post-47087","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-it-ma-and-it-tsa"],"acf":[],"yoast_head":"\n\n
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So, what does this mean? <\/h2>\n\n\n\n
Key takeaway <\/h2>\n\n\n\n
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