Businesses rely on technology. For the majority, any significant IT problems (whether an IT incident or a lack of IT capabilities) can have a significant effect on day-to-day business activities as well as business plans and objectives. It has never been more important to ensure our IT systems function efficiently. It is perhaps no surprise that more businesses than ever are turning to managed service providers (MSPs). Which is another way of saying IT outsourcing services.
IT outsourcing services are in demand. The 2017 UK IT Outsourcing Study, conducted by Whitelane Research, found that of the businesses that currently outsource IT solutions, 33% plan to ramp up the level of IT outsourcing this year. Cost reduction and business transformation are the top reasons that are driving these decisions.
But how do you know you are getting value for money? How do businesses calculate whether they're getting a return for their investment?
We want to help you answer that question, so we’ve put together this step-by-step guide on how to measure the performance of your IT service provider.
Costs Of Managing IT In-House
To start with, consider and quantify the impact of the following:
- Revenue and productivity loss from network downtime. Every time a system goes down, you are losing valuable productive time. If you know, roughly, what each persons time is worth then you can soon see how much revenue goes down the drain when they can’t work due to system errors and faults.
- Time and cost of internal staff managing and fixing IT problems.
- Productivity loss and cost of managing IT and software vendors. Most systems involve some work and client involvement, whether that is fixing problems or making sure upgrades go smoothly. All of this costs time and money.
Even if you do have an in-house team, most spend time focused on trouble shooting problems. Imagine if they could do more with their time? Such as implementing a strategic plan to improve productivity, or completing the digital transformation project that got stuck on the back-burner last year?
It isn’t just the cost of trying to manage IT internally where savings are made. It is the cost of not outsourcing, the opportunities that are lost due to a lack of resources and time.
All of this adds up.
Benefits Of IT Outsourcing
With a strategic IT partner, businesses gain multiple benefits. Vendor relations are looked after, which means your team spend less time worrying about upgrades, backups, patching and trying to solve problems for everyone else. Your outsourced IT partner manages that, saving you valuable time and resources.
Internal teams can stop troubleshooting. With an IT partner, first, second and third line support is a call, email or Live Chat exchange away. And unlike internal teams, an external partner knows they need to pull out the stops to maintain service level agreements (SLAs) and provide excellent customer service.
Another benefit is that your highly paid IT managers can stop worrying about forgotten passwords or connectivity issues. These ‘minor’ problems are actually pretty significant when an employee can’t process an order or communicate with an important customer. However easy they are to resolve, internal teams can spend an excessive amount of time on these problems. By outsourcing IT service desk, for example, internal resources can be focus on strategic, long-term goals instead. Making your company more efficient. Improving processes and systems to make it easier for your team to work together, whether you have one office or multiple sites.
When operational IT functions are in good hands, you can focus on what your business really needs. That might mean using your IT team’s skills and expertise for more meeting business objectives such as expansion, digital transformation or global growth.
Businesses use IT outsourcing services for every area of the IT function. From IT service desk, providing IT support for users within the business, to a fully outsourced IT department. As the UK IT Outsourcing Study shows those businesses that are getting value from their outsourcing partners are outsourcing more.
IT outsourcing pays for itself, which is why so many businesses are adopting this as a new way to work.
Find out more about how your business can reduce IT costs by downloading our whitepaper - IT Outsourcing For SMEs. Click here for your copy.