Strategic Outsourcing Of IT Services: A Managed Service Provider


What are Managed Services?

Small businesses looking to outsource their IT can use managed services. For a flat monthly fee, managed service providers can provide support for your company's IT needs. Managed service providers monitor and manage a company's IT network to minimize IT problems and resolve any issues. Cloud computing has made it possible to outsource IT services. Remote access to networks allows the managed service provider to deploy solutions without having to be present in person.

Clients are provided with contracts by managed service providers to outline the services included. Contracts include the start and end dates of services.Vendors might provide outsourcing choices such platform and mobile device management, software as a service, help desk, backup recovery, and software as a service. Managed service providers give all-inclusive solutions that come with limitless access to IT resources, employee assistance, and ongoing network administration.

Managed service provider (MSP), is an outsourcing company that provides it services to clients. they take full responsibility for the services and determine what technologies and services will be needed to meet their needs.

msps deliver services by staff located in the client's location or anywhere else. msps may also offer bundles of hardware, software, and cloud technology.

Model for a Managed Service Provider

managed service providers are able to structure their businesses to provide technology services at a lower cost than it would cost for an enterprise, with higher quality and greater flexibility, as well as scalability. msps are able to employ specialists that smaller companies might not be able to afford, and they can also automate, artificial intelligence and machine learning technologies that clients may not have the ability to implement.

the main difference between managed service providers and traditional outsourcing companies is the fact that an organization can outsource an it function or department to an outsourcing company. This means that the outsourcing company either replaces those employees with an equivalent number of employees elsewhere or picks up the employees. However, an MSP does not focus on the job itself but rather the results that the customer is looking for. An MSP might be contracted by an enterprise to handle support calls. The MSP will ensure that the customer is satisfied and responds within a reasonable time. It doesn't matter if the managed service provider meets these metrics. The MSP will decide if it employs dedicated staff or automation to handle the calls.

However, there is a lot of overlap between these definitions. Many companies that were once thought to be offering to outsource business processes are now more likely to operate as managed service providers.

Managed services differ from traditional IT consulting arrangements in the sense that managed services are not project-based and instead, they are ongoing subscriptions.

Examples of Managed Service Providers

Research identifies the key players in managed services markets as Accenture, Fujitsu and IBM, Cisco Systems (IBM), Cisco Systems, Ericsson and Lenovo, DXC, and Hewlett Packard Enterprise Development.

MSPs offer key services such as data center management and network management, mobility management and infrastructure management, backup management and recovery management, and communication management.

However, managed service providers come in all sizes. The MSPAlliance is an international association for cloud and managed services providers. It estimates that there are approximately 150,000 MSPs around the world.

MSPs can specialize in certain areas such as cloud management or network management. Others offer all-inclusive services. MSPs offer a variety of services such as remote monitoring and management tools and service desk capabilities.

Providers of strategic managed services

Lately, managed service providers have emerged to provide services that support long-term and strategic business planning. These include digital transformation consulting, compliance audits, and technology roadmaps.

CompTIA reports that 50% of MSPs see the internet of things (IoT), as a major revenue stream.

Managed service providers offer many benefits

According to global managed services survey 2021, the top benefits of using managed services providers include increased security, greater flexibility and scalability, and access to top industry and technical expertise.

Variable billing can be offered by an MSP based on many measures. Variable billing is a way for MSPs to generate additional revenue while also offering flexibility and scalability for customers. An example: A company that has significant investments in software and hardware cannot just reverse those investments during downturns. Layoffs can also be costly and cause lasting damage to a business if they are not able to find new jobs. It can also be difficult to add capacity during temporary business surges.

MSPs have the ability to invest in technology and expertise in a way that smaller companies cannot. This results in higher efficiency and better performance.

MSPs are also able to bridge the talent gap. Consider legacy systems, for instance. Young people become less inclined to learn outdated languages and technologies as their older colleagues retire. An MSP can train legacy skills and staff them for their clients, which is why they are so popular.

Managed services providers can be used by enterprises to help them adopt cutting-edge technologies faster, even if they don't have staff to do so.

Managed services can be a Cost-Effective Option for Organizations that do not have IT Staff or who want to make room for more IT Personnel 

  • Companies can outsource IT tasks to managed services providers so they can focus on their business, not fixing tech issues.
  • Managed service providers manage networks and make necessary updates to ensure that the system runs smoothly. They can also recommend ways to optimize your network.
  • Although managed services can be costly, they may help businesses save money as serious tech issues are usually avoided.

Employees are unable to work if your technology isn't functioning. Despite the fact that many small firms still have devoted IT staff, this is not always the best option. Small businesses are increasingly turning to managed service providers (MSPs). Are you thinking of outsourcing your IT tasks. This article will cover everything you need to know about MSPs.


Why do Businesses need managed IT Services for their Business?

Managed service providers are beneficial for businesses because they reduce risks. Managed services allow for continuous monitoring of the network and prevent outsourcing IT when problems occur. A managed service provider handles all maintenance and updating tasks. Managers can now focus on their business and not worry about IT. Prospective managed service providers must to evaluate both present and upcoming IT needs. The business will provide guidance on the kinds of goods and services a firm should use over the following 12 months. .

The pros and cons of MSPs

MSPs are different from other types of tech support because they can handle many aspects of IT and centralize IT services for small businesses. MSPs can manage your company's network, help desk queries and server upkeep. MSPs can support multiple clients, which is more than any independent computer shop or professional. This means they have more resources and can draw on a wider knowledge base.

A small business should be aware of certain factors before signing up for an MSP. Is it within your budget? Is it possible to have someone on-site who can fix printer jams? Are you confident that your technology is safe if you don't have such a service? Continue reading to learn more about outsourcing your IT needs.


1) Modifications in the model

A MSP that is efficient should be able to prevent technical problems from happening. Monitoring IT applications and security, as well as the internet, to alert you when an abnormality or issue occurs, is how MSP does this. You are actually paying for someone to prevent your business from experiencing problems rather than fix them.

2) Tech available

With specific programmes, the MSP provider can offer all the technology required for your organisation. Workstations, servers, and software are all included in this. The only requirements are that you use them and pay for them. This is a costly option, but it allows your company to spend less capital on the tech.

3) Expertise

A business that uses one "computer guy" to handle all aspects of IT will likely not be able to use their expertise in all areas. While they may be skilled at troubleshooting Microsoft Word issues, what happens when your router suddenly stops working? MSPs have dedicated staff that specialize in each aspect of IT. This means that they are usually better equipped.

4) Business continuity

Do you think about how your business would recover its data and systems in the event that there is a natural disaster? You should. An MSP can be a tremendous help in this area. An MSP who is skilled in disaster recovery can help you to sleep well at night knowing your business will be able to withstand any disaster.


1) Physical presence

One of the biggest drawbacks to MSP membership is the fact that many MSPs are far away from your company. MSPs can remotely manage your technology, so you might need to take action if a problem like a printer failure occurs. If you select a local MSP, at least within your state, it might offer onsite support. A physical visit to the office will typically cost you more.

2) Cost

It is not difficult to see that a reliable MSP can be expensive. Based on your business size and technical requirements, you will probably have to pay upfront fees as well as a minimum of a few hundred dollars per month. Keep in mind that an MSP can save you money in other areas. For example, it may provide technology you won't need to buy.

3) Scope

The MSP provider can give all the technology needed for your business with unique programmes. This includes workstations, servers, and software. All that is required is for you to use and pay for them.

Five Ways IT Outsourcing with a Managed Service Provider can Benefit your Business

As many companies strive to grow their in-house departments, the idea of outsourcing can cause skepticism. However, working with a managed service provider can help you grow and improve your business. It's one of the most common departments that are outsourced. This is because it can be costly to invest in technology equipment and hire the right people with the right experience and knowledge.

A managed service provider can lighten the pressure on repetitive IT duties while assisting your IT team in maintaining important business components like security compliance. These are just a few of the numerous advantages that managed IT services may offer your business.

IT Managed Services: The Benefits

Cost Savings

Many people believe outsourcing will increase the company's costs because they pay a third-party providers to do tasks or complete projects that your staff can handle. The opposite is true. Employing full-time employees with specific expertise is more expensive than working with managed service providers to hire them. Deloitte's 2016 study found that 59 percent of companies who outsourced some aspect their business used it as a way to reduce expenses.

Access to expert knowledge

You not only pay less for managed services, but also have access to highly skilled technologists. LHI employs a rigorous interview process to find the best candidates who have the right experience and knowledge to meet your company's needs. It is a huge benefit for your business to be able to quickly and easily reach your manager service provider regarding IT issues.

Rapidly Implement New Technology

It can be very expensive to invest in new hardware or software for your IT department.Utilizing your outsourced team's resources through IT managed services gives you the chance to leverage cutting-edge technology without having to shell out as much cash for hardware. Your IT team will keep you informed about the latest technology trends and make suggestions for your company. They can also suggest what to do to increase its competitive edge.

Compliance and Security

Security and privacy compliance should be a top priority for your IT department. Enterprise businesses are required to protect customer information. However, regulations change frequently and it can be hard for in-house staff to keep up with the changes.Outsourcing IT chores like compliance and security is a terrific idea. As regulations are put into place, your IT specialists will be able to adopt security measures, which lowers your risk of receiving a fine.

Save time and resources

Depending on how large your IT department is, managing all aspects of IT can prove difficult and overwhelming. It is possible to outsource some of the less important tasks of an IT department such as compliance, managing firewalls, anti-virus software and infrastructure management. This will allow your IT team to focus on more pressing projects that are vital to the company's success. Your managed service provider will handle the troubleshooting, while you and your employees can focus on your core business.

Tips for Hiring the Best MSP

It is not an easy task to outsource the IT department of a company. This is a big responsibility that requires careful research and careful consideration. You cannot just trust the first MSP provider you find. You must make the right decision and choose the best small-business IT services to take on this responsibility.

Here are some tips to help you choose the best MSPs and choose a reliable service provider if you're looking for the best MSPs.

1. Experience is everything:

You will find many promising service providers when you start your search for the best MSP to fit your needs. Although they claim to be the best, they lack any real experience. Avoid such service providers. It is a big responsibility for your digital business to manage its IT department. You should look for an experienced MSP who can take this responsibility.

2. Services that are insured

Look for MSP service providers that have insurance. As insurance can cover any damage or loss that your IT department might experience, it would provide a safety net to your business. Many service providers claim that they have an insurance policy. Although they do have an insurance policy, most often the policy has expired or is near its expiration date. It is important to check the status of your insurance policy to ensure it is valid and active.

3. Scope of services:

Always seek out an IT consultant Los Angeles who can provide a complete set of services. There are many dimensions to an IT department. If they are unable to take on the whole responsibility, it is not worth signing up for a MSP provider.Find a service provider who can handle all of the duties that an IT department has to perform. This covers any equipment the company might employ, such as PCs, laptops, tablets, smartphones, and other gadgets.

4. Terms and Conditions

IT services are constantly evolving in scope and extent. This is the problem with IT services. You should look for service providers who are flexible in terms of contract terms. As a business owner, you should be able to modify or add terms to the contract to meet your changing needs. You should also make sure that the terms of payment are flexible to ensure that you only pay for what you actually use.

5. House calls and response time:

Unresponsive service providers can be frustrating and irritating. Reliable service providers are essential. Some service providers offer in-house IT services while others work with an outside party. While both service providers can be reliable, it is important to choose a company that is reliable and available for house visits whenever you need them.

The current State of MSP Markets

Research predicts that the managed services market will reach $274 billion by 2026. This is an increase from $152 billion in 2020. The growth of the model and the fact that many companies have turned to MSPs in recent years to reduce the effects of the pandemic, Research says. According to global managed services survey 2021, 38% of MSPs are used by companies to manage more than half of their IT requirements, up from 25% in 2017.

According to, a survey of managed service providers, the past year saw an increase in cloud-based solutions demand and an increased drive for digital transformations. Customer demand shifted away from traditional services such as help desk and system integration to more remote support and cybersecurity.

According to survey, 54% of managed service providers reported an increase last year in cloud management revenue, while 65% reported an increase in cybersecurity revenue, even during the global economic downturn.

Managed service providers could help companies as they restructured their business models and sent employees to work remotely.

Jobs as a Managed Service Provider

An MSP allows IT professionals to work with many companies from different industries. This gives them more experience than working with one company. An MSP can offer more geographical options because many MSPs rely on remote staff.

Managed service providers can find talent in the same way as other companies, via networking and job postings. According to MSP executives who claim that salaries are comparable to IT jobs, there is a slight premium in the MSP job marketplace due to competition for their skills and business models.

Although managed services providers employ IT, professionals, from a variety of backgrounds and experiences, some companies may be more focused on certain industries or digital technologies. An MSP that specializes in managed network services, for example, will be looking for professionals with traditional computer engineering, systems engineering, and software engineering backgrounds. They also welcome software developers and networking and security experts.

MSPs also invest heavily in machine learning and artificial intelligence because of the potential growth for their client base by it services.


Every small business owner has to weigh the pros and cons of hiring an MSP. An MSP might be the best option if your business is dependent on IT support frequently or if you spend too much time fixing technical problems yourself. 

Partnering with a managed service provider is a great way to help your company refocus its goals. It will lower your expenses and give your employees the chance to work on more meaningful projects. LHI Technology is a managed service provider that prides itself in providing highly-trained IT personnel to help you achieve your business goals. We also streamline your internal processes to make your organization more efficient.