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Why Do Companies Use Managed Services?

Why Do Companies Use Managed Services?

Companies use managed services for various reasons, as they offer several advantages that can improve operational efficiency, reduce costs, and allow organizations to focus on their core business functions.

Here are some common reasons why companies use managed services:

  • Expertise and Specialization: Managed service providers (MSPs) are specialists in their respective fields. Companies can leverage the expertise and experience of these providers to access high-quality services that might be challenging to develop in-house.
  • Cost Savings: Managed services can be cost-effective as they often allow companies to avoid the upfront capital expenses associated with acquiring technology or hiring and training staff. They also provide predictability in budgeting, as services are typically offered on a subscription or pay-as-you-go basis.
  • Focus on Core Competencies: By outsourcing non-core functions to managed service providers, companies can concentrate their resources and efforts on their primary business objectives, which can lead to increased productivity and competitiveness.
  • Scalability: Managed services can be scaled up or down quickly to accommodate changing business needs. This flexibility is especially valuable when a company is growing or facing fluctuations in demand.
  • 24/7 Support and Availability: Many managed services provide around-the-clock monitoring and support, ensuring that critical systems and functions remain operational at all times.
  • Enhanced Security: Managed security services can help companies protect their data and systems from cyber threats. These providers have access to the latest security technologies and can offer comprehensive threat detection and prevention.
  • Access to Advanced Technology: Managed services often grant access to cutting-edge technology and infrastructure that might be prohibitively expensive for an organization to implement on its own.
  • Redundancy and Disaster Recovery: Managed services can include backup and disaster recovery solutions, ensuring that a company’s data and operations are protected in the event of unforeseen disasters or outages.
  • Compliance and Regulations: Managed services providers can help companies navigate complex industry-specific regulations and compliance requirements, reducing the risk of legal and financial penalties.
  • Streamlined Management: Outsourcing specific functions to managed service providers allows for simplified and centralized management of those services, reducing the administrative burden on the company.
  • Quality of Service: Managed service agreements often include service-level agreements (SLAs) that guarantee a certain level of performance and reliability, giving companies confidence in the quality of service they receive.
  • Rapid Deployment: Managed services can be deployed quickly, allowing companies to implement new technologies or services without lengthy setup and integration processes.
  • Improved Productivity: By offloading routine and time-consuming tasks to managed services, employees can focus on more strategic and value-added activities.
  • Global Reach: Managed services can provide global coverage, making them suitable for companies with international operations or a need for consistent services across multiple locations.
  • Risk Mitigation: Managed services providers often assume certain risks and responsibilities, reducing the business’s exposure to potential issues.

Overall, companies use managed services to improve their efficiency, reduce costs, and gain access to specialized skills and resources, ultimately helping them to remain competitive and agile in an ever-changing business landscape.