Managed IT services refer to when a business outsources some IT functions to another third-party service, sometimes called a Managed IT Service Provider. These outsourced functions can be as simple as keeping an IT system running all the way through to full business team outsourcing. Or, these functions can be more extensive. For instance, a business could outsource web development functions to an IT service provider in India. This article briefly describes Managed IT Services for Business.
The term Managed IT Services for Business is fairly new. The first documented use of this phrase was in 1996 with the publishing of a book by Philip Crampton and Michael Schaffer entitled Managed IT Services: A Short Guide to IT and Outsourcing. The term is most commonly used in the UK, although it is gaining popularity in other countries. In the US, Managed IT Service Provider(MSPS) is now a common terminology.
When companies want to reduce IT costs, they often turn to outsourcing to a Managed IT Service Provider. However, some find that this approach is unsatisfactory. First, businesses cannot always ensure that their chosen MSP possesses the skills or expertise required for managing their unique needs. Secondly, Managed IT Services for Business involves outsourcing functions that are not core competencies. These may include database management, security management and compliance management. As organizations continue to look for ways to streamline their operations and improve their overall operational effectiveness, in-house IT departments will likely continue to lose staff to this new style of outsourcing.
While there are a variety of ways that Managed IT Services for Business can be carried out, the most common type is through cloud-based services. Cloud service providers offer the same benefits as on-site service providers, without the cost of personnel and hardware. In comparison to on-site counterparts, the prices of cloud based solutions are generally far lower. These providers also benefit from lower infrastructure costs and less reliance on specific technologies.
There are a number of characteristics that all Managed IT Services for Business should have in order to be considered a complete solution. These characteristics are typically considered to be key points that differentiate between managed services providers and other similar vendors. These key points are:
The process of outsourcing is defined as the engagement of an external third party to perform work that is not normally performed within an in-house office environment. This practice is becoming increasingly popular in the world of IT outsourcing as well as other services marketplaces. Managed IT Services for Business should incorporate information technology policies, practices, and requirements. The policies and requirements should state clearly that service providers may provide assistance, which vendors may provide support, and how the business may use resources of both providers.
Managed IT Services for Business should incorporate the practice of integrated technology. The term “integrated technology” (IT) refers to the use of technology and practices which are developing to efficiently and effectively integrate internal as well as external applications, systems, devices, and data. An in-house IT team may not have the same level of expertise when compared to a managed service provider. Similarly, it may not be possible for an in-house team to develop and deploy a variety of different software packages and systems. Therefore, a Managed IT Outsourcing company will typically engage the services of an external provider who has experience in developing and deploying a wide variety of application and device solutions.
When it comes to the pricing of Managed IT Services for Business, the term “unbundled” usually refers to the practice of allowing the Managed IT Services for Business company to contract for the provision of hardware, software, and peripherals from a vendor and cover the expenses related to the hardware, software, and peripherals without having to commit to such purchases at the time that the contracts are made. This provides business managers with a flexible pricing structure that can easily adapt to fluctuating demand. Contracting the provision of Managed IT Services typically enables management to receive full value for their investment in Managed IT Services for Business.