When business owners and executives first hear about managed service plans, the concept can sound too good to be true. After all, a good outsourced IT provider will be able to offer you more (and better) technical support than you have been getting the past, and can give it to you at a lower regular monthly rate.
What you have to understand, however, is that there really isn’t a catch. The economics of managed services agreements work out for two important reasons:
1. Managed services plans are proactive. In IT, as with most parts of life, it’s faster and cheaper to fix something before it becomes a big problem. In other words, working proactively saves time for the client, as well as the technology team. Because managed services allows for monthly payments, rather than billable hours, your outsourced IT team can charge less to stay ahead of problems than they would to simply fix them as they come up.
2. Managed services agreements allow you to share costs with other companies. You would spend hundreds of thousands of dollars per year hiring the best technology employees money can buy, but pay only a small fraction of that through managed services agreement. The difference is, instead of paying them all to be full-time employees, with outsourced IT you are only leveraging their expertise as you need it. That makes things less expensive, and more efficient.
Want to get a closer look at managed services?