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Comprehensive Guide on Outsourced Managed IT Services

an illustration of a word desk with a laptop and a computeran illustration of a word desk with a laptop and a computer
Anush_Dilanyan.jpg
written byTech Partnerships & Collaboration Expert, EPAM Startups & SMBs

Anush has a history of planning and executing digital communications strategies with a focus on technology partnerships, tech buying advice for small companies, and remote team collaboration insights. At EPAM Startups & SMBs, Anush works closely with subject matter experts to share first-hand expertise on making software engineering collaboration a success for all parties involved.

Anush has a history of planning and executing digital communications strategies with a focus on technology partnerships, tech buying advice for small companies, and remote team collaboration insights. At EPAM Startups & SMBs, Anush works closely with subject matter experts to share first-hand expertise on making software engineering collaboration a success for all parties involved.

Information technology (IT) is critical for organizations of all sizes to stay competitive, promote growth, and streamline operations in today's fast-paced digital economy.

However, maintaining IT systems and infrastructure can be expensive, time-consuming, and challenging, particularly for businesses without sufficient funds or experience. Outsourced managed IT services can help in this situation.

Outsourcing managed IT services allows companies to delegate IT tasks to trusted external vendors while focusing on their core business operations.

In this comprehensive guide, we'll look at the many types of business process outsourcing services, their benefits, reasons for using them, and how to choose the correct service provider.

Managed services versus outsourcing: what's the core difference?

Understanding the nature and methodology of managed service providers requires differentiating between traditional and managed services outsourcing. Their execution and focus are very different, even though they both include assigning work to outside parties.

The general idea behind managed services outsourcing is to give a specialized provider control over particular IT operations, like infrastructure, applications, security, and quality assurance. On the other hand, traditional outsourcing might cover more business functions than only IT, such as customer service, human resources, or finance.

Managed services outsourcing involves providers continuously monitoring, maintaining, and optimizing IT systems rather than executing individual projects or activities.

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Types of managed services outsourcing

Outsourcing managed services is hiring outside professionals to assist with various aspects of a company's technology. These professionals deal with software, hardware, security, and support. This keeps companies' attention on their core competencies while providing dependable IT management support. Let's examine the various forms of managed services outsourcing.

IT infrastructure management

The IT ecosystem of an organization consists of data centers, networks, hardware, and software. You can collaborate with management companies offering IT infrastructure outsourcing services such as planning, implementation, observation, and upkeep to guarantee peak efficiency, expandability, and dependability.

Software application management

This refers to managing the upkeep, support, and administration of software programs a company uses. Managed service providers genuinely take care of problems like bugs, performance optimization, and integration, ensuring that applications are secure, current, and meet the company’s and user’s needs.

Network security management

With cyberattacks becoming more frequent, network security management is essential to securing data, IT systems, and operations from malware, illegal access, and other security lapses. To reduce risks and guarantee adherence to industry regulations, web development outsourcing companies use robust security features like intrusion detection systems, firewalls, encryption, and frequent security audits.

Cloud services management

With its scalability, flexibility, and cost-effectiveness, cloud computing has completely changed how companies deploy and manage their IT resources. Managed IT service providers assist enterprises in migrating, configuring, and optimizing cloud-based services like IaaS, PaaS, and SaaS, enabling them to utilize cloud technology fully. 

Database and network management

Within an organization, data storage, retrieval, and transmission depend heavily on databases and network infrastructure. Managed IT companies manage data integrity, availability, and performance by handling backups, replication, capacity planning, monitoring, and optimizing databases and networks.

Help desk and technical support

Keeping users satisfied and maximizing productivity depends on offering prompt and efficient support to end users. Under the managed model, providers offer outsourced help desk services, such as incident management, troubleshooting, and remote assistance, to address IT issues quickly and minimize delays to business operations.

Pros and cons of outsourced IT managed services

The numerous advantages of using outsourced software development and managed IT services can significantly impact a company's technology services and financial results. Considering any potential disadvantages and difficulties related to outsourcing IT tasks is crucial. Let's take a closer look at the positives and cons:

The pros:

  • Predictable budgeting: Fixed monthly rates or subscription-based pricing models enable organizations to estimate IT expenses accurately, eliminating uncertainty and variability associated with ad-hoc spending. Consistent budgeting helps to ensure that IT expenses stay within budgetary limits by facilitating improved financial planning and resource allocation.
  • Qualified service: Managed services provider follows industry standards, best practices, and regulatory requirements to ensure high quality and compliance. Businesses that work with respectable providers can minimize the risks and liabilities of non-compliance and security breaches by knowing that their IT operations are in competent hands.
  • Active IT experience: A managed services provider monitors and upgrades IT systems to avoid issues from escalating. This proactive approach to IT management guarantees that systems are always up-to-date, safe, and performance-optimized, allowing organizations to focus on their main activities without concern for IT disruptions or downtime.
  • Maximized productivity: Outsourcing mundane IT management work to managed services providers frees up internal resources for strategic projects and critical company activities. Organizations have a more remarkable ability to accomplish their objectives and compete in the market thanks to their increased production and efficiency.
  • Improved customer service: A well-managed IT infrastructure improves the customer experience by providing consistent access to products, specific services, and support channels. Businesses can increase customer happiness, trust, and loyalty by avoiding downtime, rapidly resolving issues, and providing flawless user experiences. This encourages repeat business and referrals.
  • Reduce risk: Businesses can lower their risk of technology malfunctions, data breaches, and non-compliance by outsourcing their IT operations to a managed services provider. They ensure data protection, business continuity, and regulatory compliance by implementing robust security measures, disaster recovery plans, and regulatory controls. This lessens the possibility and impact of unfavorable events.

The cons:

The managed IT services model has various benefits, but there are certain potential drawbacks and issues that firms should be aware of:

  • Loss of control: Overcoming crucial IT tasks to a vendor may diminish your control over IT operations, strategic direction, and decision-making processes. Companies may be reluctant to give up control over their data and IT infrastructure for fear of becoming dependent on outside suppliers or losing their independence.
  • Dependency on provider: Companies that depend significantly on contracted managed IT services may be too reliant on their service provider for advice, assistance, and technical know-how. Dependence on a provider can lead to vulnerabilities, primarily if interruptions, outages, or other issues affect service availability or delivery.
  • Communication challenges: Successful cooperation between companies and their managed services provider depends on effective communication. However, communication obstacles like language hurdles, time zone variances, and cultural differences may occur when working with offshore providers or dispersed teams. Businesses must establish clear communication channels, expectations, and standards for smooth engagement and collaboration.
  • Security and privacy risks: There are security and privacy risks when entrusting sensitive data and access credentials to a third-party provider, particularly if the supplier does not have strong security policies, procedures, and controls. Businesses must ensure their managed services provider adheres to legal requirements, industry security standards, and data protection legislation to safeguard sensitive data and prevent breaches.
  • Hidden costs: Businesses should be aware of potential hidden costs, including setup fees, add-on services, and extra charges for exceeding usage limitations. Examining price structures, terms, and conditions is crucial for understanding the financial implications of outsourcing IT operations and preventing unforeseen costs or budget overruns.
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Reasons for using outsourcing managed services

Companies may outsource managed IT services for various reasons, depending on their requirements, goals, and situations. Let's examine some typical justifications for IT function outsourcing by organizations:

If you lack in-house IT

Startups, small enterprises, or groups with little funding may lack the infrastructure, staff, or experience necessary to run an internal IT department. They can get expert IT support, direction, and resources by outsourcing managed IT services, which spares them the overhead and complexity of handling IT in-house.

If you have in-house IT

Outsourcing some IT tasks to outside suppliers can benefit companies even with established in-house IT departments. Internal IT workers can concentrate on high-priority projects or strategic objectives by using managed IT service outsourcing to handle overflow activities, acquire specialized skills, and enhance internal capabilities.

You want to save money

Businesses should consider outsourcing managed services because the cost savings are attractive. Companies can cut costs by outsourcing their IT activities and avoid paying for hardware and software, issues, upgrades, hiring, training, and employing IT personnel. A more affordable option with known costs and scalable solutions that fit within tight budgets is to use outsourced IT services.

You want the best support technologies

Businesses may access state-of-the-art tools, technologies, and solutions by partnering with managed services providers without paying hefty upfront fees or continuous maintenance expenditures. Managed services providers utilize their expertise, partnerships, and economies of scale to implement advanced IT solutions that enhance creativity, productivity, and competitiveness.

How to choose the right services provider?

Your outsourcing project's success depends on your choice of managed services provider. When assessing possible providers, consider the following crucial factors:

Assess your needs

When outsourcing managed services, determine your business's needs, goals, and priorities. Choose the IT tasks you wish to delegate to an external organization, such as help desk services, application support, infrastructure management, or security, and evaluate your current strengths and weaknesses to guide your selection process.

Evaluate provider expertise

Seek a vendor with the necessary training, credentials, and a track record of providing customers in your sector or specialty with high-quality services. When evaluating a supplier for long-term success, consider aspects like their technical proficiency, understanding of the sector, range of services offered, and client references.

Check references

Inquire about prospective suppliers' case studies, references, and client testimonials to learn more about their standing, dependability, and degree of client happiness. Ask specific questions about your wants and concerns and discuss your experiences, challenges, and results from working with the provider by speaking with current or past clients.

Ensure cost transparency

To prevent unpleasant shocks or unanticipated expenses, demand clarity in pricing policies, service contracts, and billing procedures. Ask possible providers for comprehensive quotations, proposals, or pricing estimates that include all costs, fees, and additional expenditures for customized or optional services. Compare price models, terms, and value propositions to determine cost-effectiveness and compliance with your budgetary requirements.

Evaluate service level agreements (SLAs)

Examine and discuss service level agreements (SLAs) with prospective suppliers to set precise standards, performance indicators, and procedures for accountability. To ensure SLAs align with business goals and needs, consider factors like response times, resolution times, uptime guarantees, and penalties for failures or breaches.

How can we help you?

We at EPAM Startups & SMBs are experts at offering managed IT services that are outsourced and customized to fit your specific requirements, goals, and financial constraints. Our knowledgeable staff guarantees a proactive, dependable, and economical business model, encompassing help desk services, network management, technology services, application support, and infrastructure management.

Working with us has many advantages:

  • Get expert support: We as a managed service provider guarantee the safety and compliance of your systems.

  • Lower operational costs: By contracting out work, you can save money by eliminating the requirement for internal IT workers and infrastructure purchases.
  • Boosted business agility: We maintain responsiveness through quick deployment and scalable solutions.
  • Higher efficiency and faster production: Optimize processes and make use of our frameworks and accelerators to get to market faster.
  • Assured security and compliance: Reduce risks and follow applicable laws when it comes to software compliance and data protection.
  • Get personalized support: We always propose solutions according to your company's requirements.

We offer the knowledge and experience to handle your IT needs, regardless of the size of your company. Contact us right now to learn more about how our holistic approach can help your business succeed.

The bottom line

For businesses, outsourcing managed IT services is a cost-effective and efficient approach to managing their technological requirements. By hiring outside specialists, companies may operate and support their IT systems without breaking the budget.

This guide discussed both the benefits and drawbacks of employing outsourced IT services. These services may greatly benefit your organization, from increasing its competitiveness to fostering growth.

At EPAM Startups & SMBs, we aim to guarantee that companies receive the IT support they require. Get in touch with us to see how our managed IT services may help your company succeed.

Anush_Dilanyan.jpg
written byTech Partnerships & Collaboration Expert, EPAM Startups & SMBs

Anush has a history of planning and executing digital communications strategies with a focus on technology partnerships, tech buying advice for small companies, and remote team collaboration insights. At EPAM Startups & SMBs, Anush works closely with subject matter experts to share first-hand expertise on making software engineering collaboration a success for all parties involved.

Anush has a history of planning and executing digital communications strategies with a focus on technology partnerships, tech buying advice for small companies, and remote team collaboration insights. At EPAM Startups & SMBs, Anush works closely with subject matter experts to share first-hand expertise on making software engineering collaboration a success for all parties involved.

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