One of the main challenges that many small businesses face is that of a limited IT budget. Every spending decision can seem like a balancing act, and a cost-benefit analysis is done for every expenditure. Those expenditures that offer higher returns always get the priority over the others. Often, these businesses feel that hiring a managed IT service provider is a luxury, and is thus unaffordable.

Who are these managed service providers?

Every business needs technology for running and growing its business. Managed IT service providers offer on-site as well as cloud-based services which can provide their client companies with access to cutting edge technology. They take the headache of maintaining technological infrastructure away from the small business by maintaining the hardware and software on their behalf. They also back up their client’s data on local and/or remote servers and provide timely restoration services if something goes wrong.

Should a small business hire a Managed IT service provider?

There is no denying the fact that hiring any service provider comes at a cost. However, there are many benefits that they provide which make the expenditure worthwhile. Managed IT services offer significant cost benefits in some areas. Let us discuss them.

• The costs are known

The terms of the contract with the service provider will specify how much needs to be paid to them and when.  Many providers offer flexible options that are fixed, variable or a mix of fixed and variable cost structures.  Small businesses can tailor the cost structure to match the cash flow and comfort level of the business.

• Access to technology:

Technology is an enabler. With the business world rapidly changing, any company using outdated technology will not remain competitive for long. However, technology comes at a price. Technological resources that businesses currently use must be upgraded regularly to keep running efficiently.  This may entail a large expenditure. Managed service providers can help small businesses decide where, how, and to what types of IT to invest in.  For example,  cloud-based technology, which is offered to clients on a pay per use or a monthly fee basis., may be able to replace ageing application servers.  However, perhaps in-house servers will save the business $10k per year.  A MSP can help the small business determine the best options for current and future IT needs. 

• Access to experts:

Another major benefit is that small businesses don’t need to hire in-house personnel to maintain their IT infrastructure. The managed IT service provider will have a team of experts who will take care of any problems that might arise. Thus, expenses like salary, training of staff and other expenses to maintain an internal IT department are eliminated.

Due to these benefits, every small business needs to think seriously about hiring a service provider. The various cost savings mentioned here can often easily offset the cost of hiring one, and make the investment worthwhile.

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