Is a Managed Service Contract Right for Your Business? June 11, 2010
Should You Go with a Managed Services Contract?
The millions of small businesses worldwide with 20 to 100 employees represent a huge need for providers who offer managed services, but small businesses generally have a low awareness and understanding of managed network services and their business benefits.
So the question begs to be asked…does your small business need managed IT services? First, let’s define what Managed IT Services are or what a managed service provider does.
What are Managed Services?
A managed service provider (MSP) provides delivery and management of network-based services, applications, and equipment to enterprises, residences, or other service providers. Managed service providers can be hosting companies or access providers that offer services that can include fully outsourced network management arrangements, including advanced features like IP telephony, messaging and call center, virtual private network (VPNs), managed firewalls, and monitoring/reporting of network servers.
Contract or As Needed?
It’s common for small businesses to rely on third party providers for IT support, but often on an as-needed basis. These economic times are very uncertain, so is it wise to enter into a long-term contract to handle these IT needs or to do so only on an as-needed basis? It’s likely that you are carefully scrutinizing all strategic decisions right now and it may be hard to convince your board or yourself that taking on a managed services contract is the right thing to do.
The main questions to consider are:
- Can it help me cut costs?
- Will it make my company more competitive?
- Will I be able to utilize my employees more efficiently?
- Will it allow me to serve my customers better and more efficiently?
- Will my profits increase?
- What are the risks?
These are very important questions to consider and must be asked. When reviewing your business and IT needs and definitely when discussing a managed service contract with a provider, these - at a minimum - should be the questions you present to them.
Educate Yourself First
Listen carefully and don’t let a smoke screen cause you to make a poor decision. Go into any discussion or negotiation in an educated manner. Be sure you understand the technology, what your options and needs are and whether the MSP can provide what you need. Don’t go overboard if it’s not what you need - you’ll end up spending money for no benefit.
