What are managed services?

Managed services refers to the outsourcing of the day-to-day management of a specific function. Managed services are available for a wide range of a number of IT-related activities. Unlike IT project work or break/fix support, managed services provide proactive support and maintenance on an ongoing basis.

Why use managed services?

The proactive management of IT resources enables organizations to keep IT services operational and up-to-date, minimizing problems and downtime. But this requires resources that strapped IT departments may not have. Managed services provide organizations with a cost-effective way to supplement their IT resources, allowing them to free up employees to focus on activities with the highest strategic value. It also enables companies to take advantage of:

• Lower total cost of ownership (TCO) thanks to economies of scale they may not be able to achieve on their own;
• Cost-effective access to enterprise-level support;
• Access to deep domain expertise they may not have in-house; and
• Predictable operating costs via fixed monthly fees.

How do managed services work?

Managed service providers (MSPs) typically offer a subscription model and charge a monthly fee. There will be a service-level agreement (SLA) that spells out the performance and quality metrics that can be expected. The MSP will monitor and proactively manage the components it is responsible for remotely. Additional offerings may be included depending on the type of managed services provided.

Who benefits from managed services?

The fact is just about any organization can benefit from managed services. Small and medium-sized businesses that do not have large IT staffs can cost-effectively expand their IT capabilities without adding expensive headcount. And large enterprises can leverage managed services to scale for growth and maximize the efficiency and productivity of their IT resources.