Managed IT Services: Cutting IT Costs

Managed IT Services: Cutting IT Costs

Cost savings with an MSP

One of the main selling points of a managed service provider to their clients is the overall costs saved by the hiring company. There is a long list of reasons that may attribute to the cost savings found within managed IT support, today we’ll be highlight a few of them.

Predictable Billing:

Managed IT services often come with fixed monthly pricing which helps in budget planning. While costs here may vary time to time, the general consensus is that the monthly cost of an MSP will remain the same over time.  46% of managed IT service users have cut their annual IT costs by 25% or more, and 50% have reduced their annual IT costs between 1-24%​​. This predictable billing model provided by MSPs makes budgetary management easier and more effective.

Reduced Infrastructure Costs

Utilizing MSPs can lead to significant savings on infrastructure costs. A study mentioned by McKinsey Global Institute indicates that outsourcing IT services reduces costs by 60% in the US​. Additionally, the widespread use of cloud-based infrastructure by MSPs offers a cost-saving strategy, as noted by a survey where 98% of businesses are utilizing cloud-based infrastructure through MSPs​.

This also means that there is little-to-no-need for constant updating of IT infrastructure as these costs do not fall in the laps of the customers, but instead is a cost to be worried about by the MSP.

Increased Operational Efficiency:

Efficiency is a major aspect for MSPs, and improving operational efficiency is seen as a significant challenge to obtaining consistent growth and profitability for MSP businesses. A recent study highlights that 66% believe automating as many procedures as possible is a key to improving IT operations efficiency​.

Aside from this increased operating efficiency, MSPs can also lead to a greater level of overall operating time. With a proactive approach to reducing IT downtime, MSPs can help companies stay online by staying vigilant against all sorts of cyber threats and by staying up-to-date with an ever-changing world of cyber-minded business.

Vendor Management:

MSPs offer vendor management systems (VMS) that can automate and streamline processes supporting sourcing, acquisition, management, and payment of on-demand workforce, which in turn leads to significant cost savings​​. Vendor license management facilitated by MSPs helps in cost-efficiency by identifying savings opportunities like bulk purchases or unused licenses, ensuring sound financial decision-making

What Works for You

At the end of the day, the best option for you is… well, the best option for you. While we are an MSP, we understand that it isn’t a necessary service for all. Further, we also understand that there are other MSPs that may be a better fit for you. Regardless of what the case might be, we are happy to have introduced you to the benefits of hiring an MSP. The world of technology is changing every day, getting left behind could happen in the blink of an eye.