What Are Managed IT Services and Why Do They Matter for Businesses?
As of 2024, Channel Futures reports that three out of four small and medium-sized businesses use a managed service provider to handle some or all of their IT needs. In the coming year, 63% of these companies plan to expand their IT outsourcing.
Why? Because IT outsourcing for small businesses can eliminate a lot of headaches—cutting down overhead, eliminating the need to compete for tech talent, improving compliance, and lowering costs for software and devices, as a start. The right managed IT provider can be more than a vendor. They can be a true partner in your business, enabling your growth with a solid foundation of information technology and infrastructure.
If you’d like to take advantage of all the efficiencies of IT outsourcing for small businesses and growing medium-sized businesses, read on. This guide will walk you through what you need to know so you can shop smart for your next IT partner.
What is IT Outsourcing?
What are managed IT services? A definition.
Managed IT Services are the suite of software tools and IT consulting that you buy when you work with a third-party provider for your IT services. Managed service providers (MSPs) provide these services, which usually include a wide range of IT tasks, from network management and cybersecurity managed services to data backup and recovery.
Managed IT services can be sold as a comprehensive bundle for all your IT needs, or on an a la carte basis covering only portions of your IT operations, such as cybersecurity managed services, or compliance. Either way, “managed IT” means you get service in addition to any tools or software you may purchase. Perks such as monitoring, documentation, call center support, IT strategy and more come with many managed IT services contracts—so be sure to look for this level of support.
What Are Managed Service Providers (MSPs), and What Role Can You Expect Them to Play in Your Company?
Managed Service Providers (MSPs) are specialized companies built to offer a variety of IT services to businesses on a subscription basis. IT outsourcing for small businesses shifts the responsibility of managing and maintaining your IT systems to outside experts so your business can focus on its core operations.
Here are some of the key managed services provided by IT MSPs:
- Proactive IT strategy, budgeting, and planning, provided by a virtual Chief Information Officer that’s dedicated to your business
- License procurement and management for cloud productivity tools, including onboarding and offboarding
- Cybersecurity managed services, offered system-wide and on your endpoint devices
- Patching, monitoring, and documentation
- On-call support for end users
- Vendor vetting and management, including remediation, troubleshooting, escalation requests, and more
Put simply, a managed IT services provider can help growing enterprises stay one step ahead of their IT needs, offering expertise and resources that might be too costly to manage in-house. With the fractional help of IT outsourcing for small businesses, growing companies can access top-tier IT talent and tools scaled to their budget and business needs.
Is my business too small or too big to outsource our IT?
The MSP industry for IT is growing globally—from $260 billion in 2023 to a projected $380 billion in 2028, according to a recent report in CIO Magazine.
Much of that growth is from small and medium-sized businesses relying on MSPs to help them manage the increasing complexity of IT. According to the Evolving Landscape of the MSP report by Vanson Bourne, companies are looking to MSPs to help them meet the needs of an AI-enabled world with more significant cybersecurity threats and higher demands for complex productivity tools. Nearly half of those surveyed added that their internal IT teams were being deployed to other projects, including high-level planning tasks. Being able to rely on an MSP to manage the everyday tasks of an IT operation allows internal staff to focus on what’s essential for their organization.
Here’s how companies make the most of their relationships with managed service providers.
What’s the benefit of outsourcing IT for small or large companies?
The benefits of managed IT services are often a win-win proposition for companies, allowing them to get better IT operations far cheaper than they would hiring internally. Managed IT services, offered at scale, have the power to level the playing field, allowing companies to have enterprise-grade IT help, regardless of their size.
The benefits of managed IT services include:
- Cost Savings: Outsourcing eliminates the need for a large in-house IT team, reducing labor costs and capital expenditures on IT infrastructure. Because of their relationship with key vendors, MSPs can get volume discounts on devices and provide keen insights on managing the cost of software licenses.
- Varied Expertise and Experience: MSPs bring technical knowledge and experience, ensuring that IT systems are managed by professionals with specialized expertise and targeted certifications. This eliminates recruiting headaches for small companies, so they don’t have to compete for high-priced IT talent for every aspect of their system management.
- Focus on Core Business: By outsourcing IT tasks, businesses can concentrate on their core competencies and strategic goals, knowing that their daily IT needs are being managed around the clock.
- Scalability: MSPs offer scalable solutions that can quickly adapt to the changing needs of the business. Most managed IT service contracts are billed by the number of seats or licenses, with additional project costs added. This means you’re only paying for the IT services you use.
- 24/7 Support and Operational Reliability: A premium MSP can offer your business around-the-clock monitoring and escalation desks ready to go in an emergency. Many also provide on-call service desks for end users, so your team isn’t bogged down managing service tickets.
- Enhanced Cybersecurity Managed Services and Compliance: MSPs provide comprehensive security services, including threat detection, incident response, and compliance with regulatory standards. They implement advanced security measures to protect against cyber threats and ensure that businesses meet regulatory requirements. They can help you proactively prevent breaches while providing your company with the documentation it needs for regulators and cyber risk insurance providers.
- Reduced Downtime with Proactive IT Management: MSPs offer round-the-clock monitoring, patching, and reporting for all your devices and software. This key service protects against outages, breaches, and downtime, helping your company keep its promises to vendors, customers, and employees.
The Shift from Break/Fix to Proactive IT Management
How the Managed Services Model Has Evolved to Proactive IT Management
The traditional break/fix model of IT management, where issues are addressed only after they occur, is becoming obsolete. Between the governance demands of advanced productivity software and the explosion of cybersecurity threats, the managed services model has, by necessity, adapted by shifting to proactive IT management. This approach involves continuous monitoring and maintenance to identify and resolve potential issues before they cause disruptions. Proactive IT management helps businesses avoid costly downtime, improve system reliability, and enhance overall productivity.
Let’s dig deeper into proactive IT management and what a premium IT services provider can do for your business.
What are the different types of managed IT services?
Licensing management of your software tools is essential, but the “service” part of proactive IT management is what truly makes the difference for your business. Management packages will vary depending on the MSP. You can, however, expect to find these management areas of expertise in many IT partners. These services will help your business with the IT strategy and governance so you can build critical operational maturity.
Remote Monitoring and IT Infrastructure Management
With remote monitoring and management, an MSP provides real-time supervision of your network and IT infrastructure, ensuring smooth operations. They deploy advanced tools to proactively detect and address potential issues before they escalate, minimizing downtime and maintaining optimal performance. By watching for patterns in your system’s performance, they can manage system alerts, provide regular patching/maintenance, and help you stay ahead of threats. Remote monitoring and management is a key part of responsible IT infrastructure for your company.
Cloud-Based IT Services for Business Growth
Cloud-based IT services are crucial for businesses looking to leverage the power of cloud computing. MSPs manage public, private, and hybrid cloud environments, providing expertise in cloud migration strategies, optimization, and cost-efficiency. They can help move your business processes and data to the cloud seamlessly and safely. MSPs also optimize cloud resources to reduce costs, improve performance, and grow at the scale of your business.
Managed Cybersecurity Services to Protect Digital Assets
Security is a top priority for businesses, and MSPs offer comprehensive managed security services to protect your digital assets. Key security measures include firewalls, antivirus software, and Security Information and Event Management (SIEM) systems. MSPs also provide advanced security services such as threat hunting and incident response to detect and mitigate cyber threats. They’ll handle more than just tool installation. They’ll handle the flurry of daily monitoring reports, patching requests, and documentation concerns that come with these tools. They’ll be the first to notice changing threat levels and can guide you to make proactive investments to stay safe.
Data analytics is a powerful tool for strategic decision-making, and MSPs offer managed data analytics services to help your business harness this potential. MSPs assist with data collection, analysis, and visualization, providing actionable insights that drive business performance. By leveraging advanced analytics tools and techniques, MSPs can help your company make data-driven decisions, identify trends, and optimize operations.
Managed Communication Infrastructure and Networking
These services include installing and managing VoIP (Voice over Internet Protocol), unified communications, and collaboration tools that facilitate seamless internal and external communication. MSPs ensure that communication systems are secure, reliable, and efficient, enabling teams to collaborate effectively and maintain productivity. Your MSP can provide the onsite engineering help to handle network installation, service, and cybersecurity protocols so your infrastructure never misses a beat.
Backup and Disaster Recovery to Ensure Continuity
Backup and disaster recovery services are critical for ensuring business continuity during data breaches, disasters, or outages. An experienced MSP can customize your backup plan to the type of data you handle and the speed you’d need to recover that data in an emergency. This includes backing up your onsite data centers and cloud-based documents and operations. In the event of a disruption, MSPs quickly restore data and systems, minimizing downtime and ensuring that business operations can continue.
How much will outsourcing my IT services cost my business?
Managed IT service packages generally fall into three different camps:
- Fully managed services that handle your entire IT operation and the tools within
- Managed IT that handles the tools and management of only a portion of your IT operations, such as cybersecurity
- A la carte services, such as project work, or retainers for extra services, such as vCISO consulting
Each of these MSP pricing models can be billed by the hour, or they can be billed per user on your system, depending on how your MSP works and the nature of the expertise needed. How do you know which is the better deal? Let’s get into some of the pros and cons of these different service agreement types.
Per-User MSP Pricing Models: Which Businesses Benefit?
Per-user pricing is an MSP pricing model designed for businesses where employees use multiple devices, such as a desktop, laptop, and mobile phone. In this model, the MSP charges a flat fee per user, regardless of the number of devices they use. This generally includes the cost of your equipment maintenance, inventory management, call desk support, and software licenses.
This approach simplifies billing and can be more cost-effective for companies with a high device-to-user ratio. The benefits of managed IT services are especially important for remote or mobile workforces, where employees need access to IT services across various devices. This MSP pricing model ensures that all devices employees use are covered under a single plan, providing comprehensive support and management.
Tiered Pricing Models for Managed IT Services
Tiered MSP pricing models offer businesses a range of service packages, typically categorized into basic, intermediate, and advanced tiers. Each tier includes a different set of services, allowing businesses to choose a package that best fits their needs and budget. For example:
- Basic Tier: Includes essential services such as remote monitoring, basic support, and regular maintenance.
- Intermediate Tier: Adds more advanced services like enhanced security measures, cloud-based IT services, management, and data backup.
- Advanced Tier: Offers comprehensive services including 24/7 support, advanced cybersecurity managed services, and strategic IT consulting.
This model provides flexibility and scalability, enabling businesses to upgrade their service package as their needs evolve.
À la Carte Pricing: Customize Your IT Services
This flexible MSP pricing model allows businesses to select specific services based on their unique requirements. Instead of paying for a bundled package, companies can choose individual services such as cybersecurity managed services around a specific tool, cloud-based IT services, or business intelligence/data analytics. This model offers maximum flexibility, enabling businesses to tailor their IT services to their exact needs and avoid paying for unnecessary features. À la carte pricing is ideal for companies with specialized IT needs or those looking to complement their existing IT capabilities with specific managed services.
How to Choose the Best Managed IT Service Provider for Your Business
Your information technology and infrastructure are the foundation of your business. When it’s not running well, neither is your company. For that reason, your choice of IT partner is one of the most important decisions your organization can make.
Before you get down to comparing quotes from MSPs, here how to find a trustworthy partner for proactive IT management.
Assessing Your IT Needs: What to Consider
Before selecting a Managed Service Provider (MSP), assessing your IT needs is crucial. Determine whether you need to supplement your in-house IT team or completely replace it. Consider the specific IT functions that require support, such as network management, managed security services, or cloud services. Do you have large projects coming up that will require IT consulting? Do you need help managing your regulatory load? All these things will affect how much you should invest in your IT services.
Auditing MSP Capabilities: Expertise and Industry Compliance
When evaluating potential MSPs, it’s essential to audit their capabilities. Ensure the MSP has the expertise to manage your specialized hardware and software. What kind of relationship do they have with the vendors they purchase software licenses from? Are they considered a gold-level provider by that vendor? Do they have certifications in areas such as managed security services, data protection, and cloud management? An MSP with the proper certifications and connections can avoid costly mistakes with your systems. A strong track record in compliance can help you avoid legal issues and ensure your IT operations meet regulatory requirements.
Ensuring Scalability and Flexibility with MSPs
Scalability and flexibility are key factors to consider as your IT needs evolve. An ideal MSP should offer scalable solutions that can adapt to your changing requirements, whether you’re expanding your operations, adopting new technologies, or entering new markets. As we’ve mentioned in this report, many MSP contracts are based on the size of your organization—specifically, the number of “seats” in your system. This ensures you’re never paying for more service than you need. Be sure to ask what drives the prices in your estimate and ask hard questions about how your MSP would handle considerable periods of growth at your company.
The Importance of Service-Level Agreements and Accountability
Service Level Agreements (SLAs) are critical when partnering with an MSP. SLAs define the expected level of service, including response times, resolution times, and performance metrics. Clear SLAs ensure accountability and provide a benchmark for evaluating the MSP’s performance. Ensure the MSP offers transparent and detailed SLAs that align with your business needs. This will help you maintain reliability and hold the MSP accountable for delivering high-quality services.
Your contract should include:
- Scope of services
- Protocols for managed security services
- Remote monitoring and management
- Whether or not help desk services are offered, at what times
- What triggers extra charges
- Ability to scale up and down based on need
- Level of certifications for employees working on your business
- Availability of a dedicated team, including whether or not local engineers could be deployed to your facility when needed
Evaluating an MSP’s Track Record and Customer Reviews
Look for success stories and case studies demonstrating the MSP’s ability to deliver results in similar industries. Don’t limit yourself to the MSP down the street. There are sometimes MSPs that are national In scope but dedicated to your industry vertical. For instance, Integris has a 200+ employee division dedicated exclusively to banking IT and a legal industry practice. Especially if you’re in a highly regulated industry, it pays to investigate how well your MSP knows your business.
Customer reviews and testimonials can provide valuable insights into the MSP’s reliability, responsiveness, and overall performance. Additionally, consider reaching out to current or past clients to get firsthand feedback on their experiences with the MSP. Ask your sales contact for a list of clients you can speak to.
We recommend these third-party sources of reviews and rankings, including:
Will managed IT support help my business grow?
Key Benefits of Managed IT Services and Why MSPs Matter
The Importance of Proactive Managed Services in Today’s Digital Landscape
Managed IT services are good for business. MSPs provide cost-effective solutions, access to specialized expertise, and enhanced security. They can take your operational maturity to the next level, with downstream benefits of managed IT services including:
- Stable, “no surprises” IT budgets
- Reduced IT costs
- Remote monitoring and management that catches vulnerabilities before they become threats
- Hardened managed security services that prevent cybercrime
- Customers who have confidence you’re handling their data safely and experiencing no downtimes
- Vendors who know they can trust your operational platforms
- Clients who know you’re a trusted partner operating with best IT practices
- Employees who are working up to their potential because they have access to the best security, training, and productivity tools
- The best prices and best coverage for your cyber risk insurance because your cybersecurity profile is up to standard
- Easier regulatory reviews because your MSP is handling all the heavy compliance burden
Long-Term IT Success with Managed IT Services
Whether a business is just starting or expanding its operations, the right MSP can help you build for your future. Of course, they’ll work hard to keep your systems running optimally. But they’ll also help you get ahead of emerging tech, so your company always strategically invests in your information technology and infrastructure. Where internal IT departments often get lost in the daily hustle of IT management, an MSP can take a strategic view, ensuring that your investments always align with your growth objectives.
The Future of Managed IT Services: Trends to Watch
Emerging technologies and evolving business needs shape the future of managed IT services. Key trends to watch include:
- Artificial Intelligence and Automation: AI is set to revolutionize all aspects of online life. However, AI will have an outsized influence on IT and IT management. AI automation will significantly enhance IT management, enable predictive maintenance, and improve decision-making. Download our free template for an AI policy for your workplace today.
- Edge Computing: As businesses adopt IoT devices, edge computing will become essential for processing data closer to the source, reducing latency and improving performance.
- Zero Trust Security: The zero trust model, which assumes no implicit trust and continuously verifies every access request, will become a standard approach to cybersecurity.
- Continued Movement to the Cloud: Companies will move more of their infrastructure to the cloud as their organizations become more decentralized, requiring specialized cloud-based IT services. This will also extend to cloud backup and more sophisticated forms of disaster recovery.
- Rise of Employee Security Awareness Training: Once only the purview of enterprises, companies of all sizes see the need for a formal cybersecurity training program for employees. Programs are now scalable and affordable, no matter your company’s size. They help train employees to be your first line of defense against phishing, social engineering, and scams of all kinds.
By staying ahead of these trends, MSPs will continue to provide innovative and effective IT solutions that drive business success.
Conclusion: What steps should I take when selecting a managed IT service provider?
How to Assess Your IT Needs Before Hiring an MSP
Before selecting a Managed Service Provider (MSP), it’s crucial to thoroughly assess your IT needs. Here are key steps to help you determine what you need from a managed IT provider:
- Evaluate Current IT Infrastructure: Review your existing IT systems, including hardware, software, and network infrastructure. Identify any gaps or areas that require improvement.
- Identify Business Goals: Understand your business objectives and how IT can support them. Consider whether you need to enhance security, improve efficiency, or support growth.
- Determine IT Challenges: List the specific IT challenges your business faces, such as frequent downtime, cybersecurity threats, or lack of in-house expertise.
- Prioritize IT Functions: Decide which IT functions are critical to your operations and which can be outsourced. This might include network management, data backup, or cloud-based IT services.
- Set a Budget: Establish a budget for managed IT services, considering both short-term and long-term needs. This will help you find an MSP that offers services within your financial constraints.
Key Questions to Ask When Evaluating MSPs
With so much on the line with your IT infrastructure, it’s essential to ask all the right questions during your discovery phase. Here are the questions we think are important to ask.
- Experience and Expertise: How long have you been in business, and what is your experience with companies in our industry?
- Service Offerings: What specific services do you provide? Are there any services that are not included in the standard package?
- Service Level Agreements (SLAs): What are your guaranteed response and resolution times? What happens if these SLAs still need to be met?
- Security Measures: How do you handle data security and compliance? What measures are in place to protect against cyber threats?
- Support Availability: What are your support hours? Is 24/7 support available, and is it included in the contract or billed separately?
- Onboarding Process: What does your onboarding process look like? How long does it take, and what is required from our side?
- Proactive Management: How do you monitor and maintain IT systems? What proactive measures do you take to prevent issues?
- Disaster Recovery: What are your disaster recovery plans and backup procedures? How often are these tested?
- Pricing Structure: What is your pricing model? Are there any hidden fees or additional costs for specific services?
- Client References: Can you provide references from clients in similar industries? How satisfied are those clients with your services?
- Scalability: How flexible is your service in terms of scaling up or down based on our needs?
- Strategic Planning: Do you offer strategic IT planning and technology roadmaps to align with our business goals?
- Account Management: Who will be our main point of contact? How often will we have review meetings to discuss performance and strategy?
- Compliance and Certifications: What industry standards and certifications do you adhere to? Are you experienced with compliance requirements relevant to our industry?
- Incident Response: How do you handle incidents and emergencies? What is your process for communicating with us during such events?
- Quality of Your Escalation Desk: When things go wrong, do you have level two and three engineers available to help address complex incidents? Do you have good relationships with your vendors that will allow you to quickly fix problems with licensed software?
- SOC2 and Shields Up Compliance: Does this MSP comply with basic cybersecurity standards set by the National Institutes of Science and Technology, including the latest Shields Up protocols? Is the MSP’s operating center SOC2 compliant? These standards are considered table stakes for any cyber-secure company. Your MSP must be at least as compliant as your company hopes to be.
Resources for Finding the Right Managed IT Services
Now that you understand some of the issues and stakes at play in your MSP selection process, Integris has several resources available to help you gather information.
DIY Comprehensive Assessment Checklist
This checklist will run you through many of the questions we ask new clients when we are conducting a thorough system assessment. The questions it poses will help you think through your priorities, strengths, and weaknesses before contacting a potential MSP partner.
Don’t Be a Sitting Duck: 15 Urgent Security Protections Every Business Should Have in Place Now
This quick guide walks you through the managed security services and tools critical to your safety and success. It’s a great place to start comparing where you are and where your cybersecurity managed services need to go.
Interested in Learning More? Let Integris Help
Integris handles the IT of more than 1000 companies nationwide and consistently ranks among the fastest-growing, best-reviewed IT MSPs in the country. We’d love to help you, too. Contact us today for a free consultation!
