Why Organizations Opt For Managed Services

Posted by Gordon Tampol, Principal of GPMS on Tuesday, May 5, 2015

Managed services refer to the instances when IT services are delivered by a service provider to a client instead of the client themselves running the service. It can be either in-house or in a hosted manner, using infrastructure owned by the client, or potentially owned by the service provider.

Customers’ expectations for managed services are widespread. They are consistently in search for a provider who can offer a full range of IT and business related services. This means, on the IT side, a good provider is the one who can support full breadth of multi-vendor technology applications (custom and packaged) and infrastructure (servers, networks, storage, security, etc…). Also, it should be providing cutting edge technologies (virtualization, mobility) and services that open a door to the new realm (cloud, Saas/Paas).

According to global surveys based on buyer feedback, there are four factors that push organizations to go towards managed services:

Financial Management: Using managed services enables organizations to drive down both capex and opex costs, which undoubtedly frees up funds for further investment. This is possible by saving on internal cost saving initiatives and potentially higher costs incurred in upgrading to new infrastructure and technologies.

Talent and Skills: Buyers enjoy unlimited access to resources, staff, capacity and industry knowledge at the lowest possible cost to get support on their core competencies. It helps organizations to allow their staff to focus on important strategic initiatives that are critical to achieve goals and let the managed service provider handle their IT.

Consistency: Enterprises choose these services to ensure greater agility, quality and consistency. It is believed these services can provide a more managed time to market by allowing the swift implementation of applications across business units. This enables to overcome operational deficiencies and increase operational excellence.

Low Cost Upgrade: Buyers have chosen managed services for optimizing current capabilities by enhancing present processes and adding functionality to installed technologies. When new technologies are introduced, customers do not have to pay for the upgrades. The service provider manages them and its customers enjoy the privilege of using them for the betterment of their business without getting involved in the process of paying any extra amount.