A managed service provider (MSP) is an organization that manages a company’s IT infrastructure and user systems from a remote location. An MSP is a network administrator, security consultant and disaster recovery expert rolled into one. These professionals handle information services, business-to-business integration, supply chain management, and all the tasks clients don’t want to carry out themselves.
How a Managed Services Provider Works
Most MSPs operate on a subscription-based model. Clients pay monthly or annual fees for services, and costs vary depending on the MSP. One study suggests that MSPs in the United States charge clients $65 per desktop, on average, for IT support and maintenance. After agreeing on costs, the MSP and the client will come up with a service-level agreement (SLA) — a contract that defines the roles and the responsibilities of each party. The SLA will stipulate factors like performance benchmarks, availability, and uptime.
There are lots of customization options, too. Typically, clients just pay for the services they require — procurement or employee management, for example — instead of expensive packages that include services they don’t need. Communication between the MSP and the client is critical, however. “To fully take advantage of the available managed services options, an IT department must become adept at managing relationships, not only with external providers but also with internal users, who are increasingly being seen as customers,” says Danny Bradbury from CenturyLink, writing for Forbes magazine.
The Benefits of an MSP Managed Service Provider
MSP IT providers optimize various business processes. Clients relinquish control of their operations, but MSPs take care of all the time-consuming and repetitive tasks. This provides clients with more time to focus on other business-related duties. Outsourcing IT services to a third party suits organizations that have a small team of staff or want to drive business growth. They can reduce labor costs by delegating IT services to an MSP, for example.
MSPs save clients money, too. These professionals search for ways to cut spending and improve cost management. Forty-six percent of managed IT service users have reduced IT costs by 25 percent or more; 50 percent have reduced IT costs by between one and 24 percent.
Network security is one of the most popular managed services. MSPs upgrade IT services, manage IT infrastructure and ensure systems aren’t compromised by malicious parties. They often have specialist IT skills, providing the client with peace of mind.
Also, MSPs are familiar with federal and state legislation and PCI compliance standards. This reduces the likelihood of clients receiving hefty fines for non-compliance.
This post is an excerpt from an article that first appeared here and is reproduced with permission from Tenfold. For more, check out the full article here.
