Like any investments, managed IT is a financial commitment, thus it only makes sense to think about the potential returns. There are several advantages of managed it services that result in financial savings.
I want to make a quick note about managed IT services before we get started: they can support a number of organizational activities. Focusing the proper people and resources on strategic projects is the main problem that firms have when implementing their corporate strategy, according to IDC (International Data Corporation) study, according to an IBM white paper titled “Business Value of Managed Services.” In essence, businesses want to maximize production while ensuring that their expertise is concentrated on key areas of their organization.
In a recent study, IDC examined the benefits of Managed IT for businesses. The researchers concluded that if every 100 users were to implement their solution, just under $400,000 would be saved annually. Here are some details to consider:
MANAGED IT PROVIDES FINANCIAL BENEFITS
Managed IT assists businesses in many ways to make sure that the best people and resources are used, which has a positive impact on the bottom line. Increasing customer happiness, investing in new resources, making the most use of already available resources, and enhancing an organization’s agility are further common aims that Managed IT can help. Here are a few ways managed IT helps organizations make money:
1. THE PRODUCTIVITY OF USERS
You look to technology as company owners and IT directors to increase productivity and improve how you conduct business. There is an issue if your technology cannot accomplish it. Additionally, you lose money if one of your users is unable to work.
Organizations lose $58,118 for every 100 users of unplanned downtime, according to statistics from IDC. Due to server outages, the typical employee lost 12.4 hours annually, and network outages cost them 6.2 hours. They were able to cut the downtime of their servers and networks by more than 85% by deploying Managed IT Services.
2. EXPENSES FOR INFRASTRUCTURE
There are several ways that switching to a Managed IT company lowers infrastructure expenditures. Utilizing a Managed IT provider’s data centres allows you to reduce the amount of infrastructure you have on-site when they take over management of your infrastructure. You save money not only on the hardware’s purchase price, but also on the energy it consumes and the storage space it needs.
The costs of license, training, and consultancy will also be less expensive. The cost of one monthly investment meets all of these requirements. To help you save money, these services don’t disappear; instead, they are all consolidated and handled more effectively by a single provider. Overall, each firm in our study saved $146,801 per 100 customers annually simply on infrastructure-related expenses.
3. PRODUCTIVITY OF THE IT STAFF
We frequently observe IT personnel engrossed in resolving user difficulties or repairing broken equipment. Their primary responsibilities are obscured by these chores. Your workforce, including both IT professionals and non-technical staff, can continue to concentrate on more crucial responsibilities by outsourcing the management of your IT environment to a managed services provider.
4. A SMALL INVESTMENT IN THE BEGINNING
Your initial technology investment expenditures might be reduced with the aid of managed IT. You pay for the service with a small monthly expenditure rather than shelling out thousands of dollars up front for hardware and software. You don’t need as many resources to manage your company’s technology because the service is an operating expense rather than a capital one. Additionally, upgrading to new software is part of your subscription, so you won’t be charged extra to keep your technology current.
5. THE COSTS YOU CAN EXPECT EACH MONTH
Regardless of the quantity of support you use each month, Managed IT charges the same monthly fee. By doing this, you’ll be able to invest in other aspects of your business with more freedom because you’ll know exactly what to budget for and what service you’ll get. Moreover, it’s now much easier than ever to keep track of your expenses.
6. SUPPORT FROM EXPERTS IMMEDIATELY
We both understand that time equals money. Projects are stalled and productivity is disrupted by IT issues. Additionally, the time spent trying to fix IT issues is money wasted. Employees won’t have to wait for someone to fix their technical issue in order to get them back up and running when you use managed IT. Instead, you’ll get instant access to a professional who can address your issue and restart your company, frequently within minutes.
7. SCALE ECONOMICS
Your company’s support system must expand as well as your business. When you employ managed IT services, scaling up or down your organization requires nothing more than a quick conversation with your supplier. Your provider can accommodate new hires of 10, 15, or even 50 people. Similar to this, you can quickly uninstall a particular cloud computing programme if you aren’t utilizing it.
The highest level of adaptability is provided by managed IT services, which can grow or shrink in accordance with your company’s demands. This is especially helpful when your company is just getting started and when it is experiencing rapid expansion because anything can happen at any time.
8. PRODUCTIVITY OF THE ENTIRE BUSINESS
By establishing an IT environment that is dependable, scalable, and well-supported, all of the aforementioned advantages of managed IT services work together to raise total corporate efficiency. In reality, IDC determined a yearly benefit of $229,511 by calculating the effects of overall business productivity on revenue.
THE ROI IS NOW READY
Although cost savings are evident in the research, return on investment is still a crucial calculation to perform. According to the IDC report, each firm invested an average of $274,326 for every 100 customers. Their three-year ROI analysis revealed a return on that money of less than six months and a total ROI of 224%.
Here is a link to the full study and results.
Of course, you must evaluate the advantages to determine if they are consistent with your business goals before deciding whether or not to use a managed IT service.
IT MANAGEMENT BENEFITS
Managed IT has various advantages, regardless of whether you are a small or large business owner. Consider the potential effects of the aforementioned advantages on both your daily work and your bottom line. Think about the advantages and the ways you may put the money you would have saved to use in your own company.
By utilizing managed IT, you’ll be able to scale as needed, have rapid access to professionals, and avoid spending a sizable portion of your money on infrastructure setup. The advantages of managed IT can be exactly what your company needs to advance.