A Managed Service Provider (MSP), sometimes called a Master Service Provider, is a third-party company that offers a platform for managing the day-to-day services of customers and employees.
While it’s commonplace among large enterprises, it’s also a strategic method of improving operations for small and medium-sized businesses, non-profit organizations, as well as governments.
Operational tasks of Managed Service Providers
Many of the operational tasks an MSP handles have nothing to do with customers, but rather the management of an organization’s internal processes. This often helps with managing an often disparate workforce that’s spread across multiple departments, divisions, as well as locations throughout a company.
MSP systems allow businesses to take advantage of the expertise and efficiencies of these outsourced programs to avoid the direct cost of having to manage a program themselves. It can be especially beneficial to smaller businesses that don’t have the people and resources to handle those systems in-house or have to spend hours each week manually filling out reports or learning fixes.
Managed Service Providers can manage and assume the responsibilities of IT, payroll, workforce management (WFM), human resources, contract management and compliance, vendor management, as well as procurement and sourcing. Outsourcing these areas of business also allows organizations to avoid the direct cost of managing those programs themselves.
How does a Managed Service Provider work?
If your small business ever needs someone to manage your company’s network, but you can’t hire an on-site team or designate an already busy employee, an MSP could be exactly what you’re looking for. When you work with an MSP, you’re contracting a remote team instead of an on-site team; however, they also install hardware (managed by them), as well as the software required to use their services.
An MSP enables a company to grow more easily as well. While you may only have one or a couple of business locations at the moment, a managed service provider can monitor your network even if it’s spread out over more than one structure. If you ever have to add more workstations or devices to your network, you simply contact your provider to scale their services to your needs.
When engaging an MSP, you won’t be relinquishing overall managerial control and responsibility because they’re mostly dealing with the time-consuming, complex, repetitive, and arduous work. You also get to choose which services you want to be managed externally and which ones you’ll keep working on in-house, which allows you to focus on the tasks that will drive profits and grow your business
What are the benefits of using a Managed Service Provider?
The first question many small business owners ask themselves when it comes to making an organization change is simple: cost. The Managed Service Provider trend is growing because it drives cost savings. Not only do businesses reduce the cost of dedicated in-house personnel, but they also get the added benefit of reducing the cost of technology, tools, and other resources. Another benefit related to cost is predictability. With an MSP, you get an upfront cost (depending on the services required) and an ongoing monthly flat fee, which means you have a much better idea of what you’re going to pay each year.
In addition to predictability, an MSP also gives you reliability. That’s because they have the experience, expertise, and knowledge in the services being provided. They know all the government regulations and industry standards to guarantee compliance and reduce risk and liability. Plus, they have all the necessary technology, tools, and resources to continuously streamline procedures and processes efficiently. This can provide up-to-the-minute information and greater visibility, which will result in greater insights and can lead to better decision-making. And, most importantly, it allows you to focus on what you do best, run your business.
Why do businesses use MSPs?
When you go with a Managed Service Provider, it’s important to remember that when you win, they win. They want their service to work as efficiently and productively as possible for your organization because they want your business. That means they’ll review your processes such as payroll, data storage, or how you manage customers and employees. They’re looking for ways to save you money by reducing spending, but also maintaining organizational efficiency.
Additionally, they’re getting an outside perspective of your operations, which oftentimes results in the discovery of liabilities and challenges that you might not have been aware of. Once your processes are analyzed and opportunities are found, the MSP will create a custom solution catered to your organization’s specific needs. After that, they provide continuous maintenance and support to ensure ongoing success.
Does it make sense to use a Managed Service Provider for a Small Business?
The only way to set your business apart in this highly competitive economy is to stand out from the crowd, and the only way to accomplish that is to be as efficient and productive as possible. When you’re preoccupied with administrative work, you aren’t concentrating on the direction, strategy, and growth of your business.
A Managed Service Provider will also enhance reliability and accuracy, act as an extension of your team, provide value, as well as reduce cost.