Managed Service Providers: Don’t Get Nickel and Dimed

If you’re not working with a Managed Service Provider (MSP) for your IT services, you’re most likely operating on a break/fix model. There’s also a very good chance you have either an internal IT contact/department or you hire outside contractors on a case-by-case basis. Every business is different, but for most Small to Medium-Sized Businesses (SMBs) staying within your budgetary requirements is important to the vitality of your operations.

A number of SMBs may choose to hire an outside consultant when their primary function isn’t directly related to the production of the company’s core products and/or services. Others may choose to hire internal IT staff members to handle day-to-day issues and incur the overhead.  When partnering with an MSP you can avoid financial setbacks caused by fluctuating monthly costs and gain access to a broad range of technical expertise.  

How to go over your IT budget

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Outside Contractors

If you are running an SMB you may not think you need ongoing IT support to function effectively. Maybe, you didn’t incorporate information technology into your business model. You may have a small environment without a large number of employees and/or systems to manage.  In today’s world, All businesses depend on technology in the workplace. What happens when there’s a data breach and you don’t have the support in place to address the issue timely? 

You may decide to hire an outside IT consultant to get your systems up and running. They most likely do not have a full understanding of your environment and the issue may take longer to rectify, which could lead to increased costs and a short-term fix.

On top of paying the contractor for their services, you may need to spend more money on their “necessary” recommendations.  If the issue is not completely resolved, the contractor may need to make multiple visits, which can lead to exorbitant fees when you could’ve worked with a Managed Service Provider for one monthly fee. Without an IT partnership, you will end up paying more and contractors have no incentive to go the extra mile for you.

Internal IT

Another SMB protocol s through their own internal IT department. Unfortunately, not every person you hire ends up working out and there are a number of costs that go into taking on new employees. The average salary of a systems engineer is $85,000. Now multiply that by the number of team members you would like to take on for your IT department. 

Additionally, you have to pay for their health benefits, vacation and sick days, 401K, payroll taxes, and training. The financial requirements don’t stop there. Along with the expenses that go with hiring and paying an employee, you still have to pay for all the software and hardware required to support your IT.

How to stay on target

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Managed Service Providers

Unlike the two previously mentioned technical plans, there are no financial surprises when you work with a Managed Service Provider. When you have managed IT services, you’ll be paying the same amount regardless of how much support you need each month. This means you’ll know exactly what to budget for and what services you’ll receive, allowing you to be more flexible when investing in other areas of your business.

MSPs have so many service offerings. Some include, Managed IT Security, Managed IT Cloud Services, Backup and Disaster Recovery, Vendor and Asset Management, and Business IT Consulting all for less than the cost of an internal system engineer. They can also offer remote monitoring and management. With an MSP you gain a full team of experts without the financial burden of taking on new employees.

Downsize Your Onsite Technology

Switching to a Managed Service Provider can reduce infrastructure costs in a number of different ways.  Utilizing the benefits of the cloud is a great option to reduce hardware costs and increase efficiencies.

The trend of businesses that are capitalizing on cloud based applications and solutions is continuing to grow, but not all companies have taken the leap. Cloud computing can make your business more scalable and efficient. It is a low-cost, low-maintenance solution that can significantly increase your mobility and employee productivity overall. 

However, not all clouds are created equal, so it is important to understand the impact that this transition can have on your organization. Working with an MSP, can provide the road map necessary to make the right decisions for your organization.

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No Large Technical Investment

The initial investment you make in your company can seem extremely overwhelming. With an MSP you pay for the service through a low monthly cost, rather than spending thousands of dollars on hardware and software upfront. A reputable MSP will guide you along the way and tell you what is and isn’t necessary. Because the service is an operational expense and not a capital expenditure, you don’t have nearly as many resources tied up in managing your business technology. 

Along with that, you won’t have to pay every time you need your software updated. This kind of service is included in your monthly package with an MSP. They make sure security patches are done regularly and you’re always up to date. They make sure you’re secure while saving you money.

At The TNS Group we strive to deliver a customized solution to meet your overall technical and business needs. Contact us today to see how we can save you money on technology.