- July 1, 2016
- Catagory Managed IT Services
The Competitive Advantage of Outsourcing
Companies selling managed IT services often lead with the cost savings they create for customers – but how true a statement is this, how much do they save, and what’s the real advantage?
A study by technology not-for-profit CompTIA revealed that 9 in 10 businesses using managed service providers for at least one service are happy with the relationship and service being delivered. Improvements in several key areashave proven most appealing:
- New cost and process efficiencies
- Reduced/Removed infrastructure purchases and updates
- Decreased drain on internal resources
- Increased organisational productivity
- High-quality helpdesk services
- Lower total cost of technology services
Almost half of the companies surveyed reduced total IT expenditure by up to a quarter by moving some parts of their technology environment to a managed services arrangement, and 13% stated as much as a 50% reduction in spend.
The IT Outsourcing Statistics study, 2011/2012, identifies the most popular managed IT services as follows:
- Managed IT Security
- Managed Network Infrastructure
- Application Development and Software as a Service (SaaS)
- Managed Helpdesk and User/Desktop Support
- Managed Backup and Disaster Recovery Solutions
Dollars and cents doesn’t tell the whole story. ‘We know our customer base appreciates not just the reduction in overal spend for business critical services,’ says Sanjeev Spolia, CEO of Supra ITS, a leading Canadian managed services provider based in Mississauga, Ontario.
‘Customers appreciate that we take responsibility for their technology environment not just today, but to ensure they are in the best shape tomorrow. That can mean simply making sure the latest updates are installed or proposing new technolgies that will serve them better.
‘A good managed service provider is not just accountable to the task,’ Spolia continues, ‘but removes risk and allows the customer to focus on their strategic business goals rather than chasing the technology game.’
The question of what to do with the money saved? According to Spolia, the money is reinvested into staffing, adding new technologies or used to strengthen marketing programs. ‘We’re fortunate to be in a business that is extremely quantifiable,’ he concludes. ‘We can point to real numbers that can be used to gain specific competitive advantages that best suit a company’s situation at a given time.’