Is Outsourcing IT Services the Answer to Saving Money?

October 10, 2014 David Gemma

What is Managed IT Services?

Managed IT Services (Outsourced IT) is defined as an outside firm or service provider who handles your Information Technology needs including:

  • System Monitoring
  • Data Backups
  • Security Patches
  • Anti-Malware
  • Email spam filtering
  • Planning and Budgeting for Upcoming Hardware/Software Upgrades

With so much focus on reducing costs and increasing profits, many small to medium sized businesses are looking at ways they can achieve the highest profitability.  According to the Microsoft SMB Insight Report, 67% feel that this can best be done by reducing staff with a close second of 64% focusing on reducing IT costs.

Microsoft SMB Insight Report

Source: Microsoft SMB Insight Report

How does Managed IT Services help you achieve these cost savings?

  • Ensures that your network of computers is running smoothly and efficiently with daily monitoring.
  • Helps your staff to be more productive by preventing computer downtime and viruses.
  • Eliminates the need to hire full or part time in-house employees to handle your IT needs.
  • No worries about benefits, vacation schedules or personnel issues for IT staff.
  • Easier budgeting for IT expenses as it is typically all covered under a single fixed monthly IT cost.
  • Most Managed IT Services include some sort of evaluation of your network on an annual basis allowing you to stay on top of your computer replacement cycle as well.


Know what you are getting for your money!  

Be aware that not all Managed IT offerings are created equal.  Look out for hidden costs such as limits on support hours or travel expenses as well as minimum charges for site visits.  Most importantly, know what you are purchasing and who you are purchasing it from.  Don’t be afraid to ask to speak with existing clients to better understand how the provider delivers service.

With all the improvements in remote services, most support and assistance can be performed remotely, however,  there are times when your provider will need to be on site to fix an issue or perform a task.  If all their support is outsourced overseas this may prove to be more challenging.

In our next blog entry, we’ll talk about the importance of a local provider for your IT needs.
David Gemma is UNAPEN’s CMO and Head of New Business Development and Ken Rode is the Director of IT.  UNAPEN, Inc. is a nationally recognized consulting and software development firm that provides software and technical consulting to the financial services industry. Visit the website or follow on twitter @UNAPEN.  

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