Outsourcing Managed IT Services – The Advantages
A managed services provider is an organization that manages another company’s services. Basically these are companies that handle outsourced services on a per month basis, which is their means of receiving income.
A business decision of outsourcing managed services has to be a critical one. Aside from helping to lower costs, the in-house personnel will be able to focus themselves on other essential activities of the business. At the same time, the responsibility for the daily activities are passed on to the IT service provider. Another advantage is the improved vendor management that it facilitates and additional profits it will help bring into the company. It also facilitates better vendor administration and can help to increase revenues.
Most organizations were initially hesitant about sharing sensitive and confidential information to a third-party organization. Cases of security violations as well controversial practices were discovered. But, after some time, such issues were significantly addressed by way of process improvements and in-house checks and review. The IT outsourcing company turn out to be a dependable partner.
Even organizations which adopted the standard IT practices slowly accepted IT outsourcing solution. Organizations branched out into the managed services business. Subsequent to the transitions, companies confronted many quality-related issues. There were allegations and various criticisms that quality was traded-off for the costs.
Companies turned to various levels of quality control. The managed services providers were not always able to meet those conditions.But, over time, such issues were significantly addressed and the providers have been able to cope with the requirements as well service-level expectations. If a vendor lacked some kind of competency in his service portfolio, which clients expect from them, then they hire sub-contractors. Companies employed different levels for checking the quality of both the vendors and the sub-vendors they are working with. Over time, these problems were considerably addressed. With the sub-vendors there were very little issues about data theft or loss since most of the very sensitive information was handled by the primary vendors themselves.
There are many factors to consider when choosing a vendor. Some of these factors include the status of the vendor, their service portfolio, clients’ testimonials, and internal improvements and processes to name just a few.It is important to pick the managed services vendor that can meet the criteria of your organization.
The means of engagement has to be one more crucial factor when selecting a provider.As observed by most companies, the usual outsourcing models are ineffective.As such, the industry has developed several engagement models.A popular mode is the co-sourcing. Here, the provider’s resources have to work at the client’s company headquarters, so there is no loss of control over the business. They complement the client’s in-house IT staff. This is the preferred engagement mode by most companies and it overcomes the restrictions of the traditional outsourcing model.