5 Reasons Mid-Size Service Firms Should Adopt Managed Services
Managed IT Services
For many small and medium businesses, remote monitoring and management of their computer network is obvious. The managed service provider can improve efficiency, reliability, security, and maintenance while reducing costs and freeing IT staff to work on more strategic projects.
But according to a new CompTIA study, companies that do not use MSP are more than ever assured of this path.
In 2013, 7% of companies not using PSM reported that they did not plan to use them in the future. This year, that number has risen to 31%.
Here are the main reasons why companies avoid PSM.
1. Skepticism about cost savings
In the past, cost savings have been the main driver for companies moving to PSM, "said Carolyn April, CompTIA's Senior Director of Analysis.
"But this year's cost savings are down," she said. "Users are thinking more strategically about what PSM can do for them."
Cost savings are now in fourth place as an adoption engine for companies that opt for managed it services.
Businesses are learning that it is difficult to calculate the return on investment of managed services, she said.
2. Lack of need
According to CompTIA, some small businesses may no longer need the types of services offered by an MSP because they have opted for self-provisioned cloud solutions.
For example, last year, 58% of respondents needed outside help to deploy, install, or integrate technologies, but that percentage dropped to 48% this year.
3. Reluctance to outsource to an external company
Paradoxically, security is one of the factors here, said Avril. Improving security and compliance is the second leading cause of PSM adoption, she added.
"On the other hand, when we talk to end customers who do not use MSP, one of their biggest concerns is security and privacy," she said.
4. Loss of control perceived by IT or operational staff
Outsourcing a technology function not only reduces a company's degree of control over the details of implementing that feature, but can also transfer the internal responsibility for that IT function to a sales manager.
And some companies might wonder why they need IT staff.
According to the report, 26% of companies that started using PSMs have reduced their IT staff and 9% have completely eliminated their internal IT department.
The smaller the company, the more likely it is that staff will be reduced. In companies with 100 or more employees, 72% maintained their current IT workforce, but reassigned people to other projects. However, only 41% of companies with fewer than 100 employees retained the same workforce.
5. Concerns about disruption during the transition
In addition to changes in personnel, the transition to new systems will require adaptation by the client. This could involve training employees on new systems or redesigning complete business processes.
It is therefore logical that the most used managed services are those that have the least effect on employees or the easiest to adopt.
According to the CompTIA report, 72% of businesses using MSP use them for backup and disaster recovery, and 21% want to add these services.
Security services, such as antivirus and spam filtering, are in second place with 68% of companies using them and 24% planning to add them.
Storage is third with 64% adoption and 27% with adoption projects.