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.
Outsourcing managed services can be a very important business decision. Outsourcing would help reduce costs and your in-house personnel can concentrate on other crucial business activities. 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.
Companies were generally apprehensive at the start to share confidential customer data and sensitive information to intermediary organizations. 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. It outsourcing providers became trusted partners.
Even organizations which adopted the standard IT practices slowly accepted IT outsourcing solution. Organizations expanded their trade and provided managed services solutions. But companies continued to face various issues concerning quality even after the conversion. There had been several criticisms as well accusations that quality was being jeopardized for costs.
Companies turned to various levels of quality control. Sometimes, the managed services providers found those specifications difficult to meet.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’s service portfolio lacked specific competency demanded by clients, then they would appoint a sub-vendor. The vendors as well as their sub-vendors had to pass several levels of quality inspections that the companies imposed. 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. These are the vendor’s reputation, service-portfolio, testimonials from clients they have worked with in the past, internal processes and development, etc.It is important to pick the managed services vendor that can meet the criteria of your organization.
In addition to the ones previously mentioned, you should also consider the provider’s approach.Many companies have discovered that traditional outsourcing approaches do not work.Since then, the industry has introduced new engagement models.One of which is the co-sourcing engagement mode. In this approach, the provider’s resources go to work at their client’s work station and thus preserve business control. They work together with the IT personnel of the client. This is the preferred engagement mode by most companies and it overcomes the restrictions of the traditional outsourcing model.