Why MSPs outsource their IT services

MSP organisations have been dealing with the effects of the pandemic for well over a year now and it seems as though we will soon be transitioning back to “normal”. Many businesses have started outsourcing their services since the pandemic and with this there are many advantages. When the pandemic took the world by storm millions of companies quickly switched to a remote work model, some began to consider outsourcing more seriously – and many took action to implement it into their business model.   

It appears that the most commonly outsourced MSP services are NOC, help desk, and out-of-hours services, however there are other options available which other businesses benefit from, such as security services, dedicated technical resources and more. It’s important to still have some key skills in-house to be able to properly manage outsource relationships for the end client, internal users, and the outsourced partner.  

There are many reasons why MSPs outsource their services. Below we have outlined these benefits:

1. Lack of resources

Have you ever had a customer present you with an issue that you weren’t able to resolve due to lack of resources in-house or perhaps you had the technical capabilities in-house, but your best engineers were focused on other projects? Outsourcing services allows you to expand your service offering instantly, ensuring that you never miss out on revenue making projects.

2. Reduced labour costs 

Hiring and training staff can be costly, and time consuming, plus new employees don’t always live up to your expectations. Outsourcing allows you to focus your energy on the business and less time on human resources.

3. Trained, experienced, qualified and certified 

Certifications such as Microsoft Certified Systems Engineer (MCSE) are important, but so is experience. You need to know that a team of experienced technical engineers are on hand when your clients need it most. Outsourcing allows you to choose a technical team to your exact specification.

4. Fulfilling out-of-hour requirements

For many MSPs out-of-hours means an engineer taking a work phone home with him and being on call should the worst happen. However, what if your best engineer is working through the night? How will that impact your service delivery the following day. Outsourcing provides you with the peace of mind that all issues and tickets are dealt with out-of-hours for a fraction of the cost, allowing your engineers to focus on revenue making projects.

5. Controlling IT costs 

Outsourcing converts fixed IT costs into variable costs and allows you to budget effectively. In other words, work on a pay-as-you-go plan for your MSP so you’re only paying for what you need and not what you think you do.

6. Staff wellbeing 

Outsourcing some of your IT services allows your IT team to focus on what really matters, your customers. It also ensures that your technical engineers don’t burn out when dealing with your clients unexpected technical issues.

7. Quickly implementing new technologies/services

Adding a new product/service to your product portfolio is a quick and easy way to increase revenue with new and existing customers. Many MSPs are now utilising the services of Security providers to transform their businesses into MSSPs.

8. Reduced risk

Every business investment carries a certain amount of risk. Markets, competition, government regulations, financial conditions, and technologies all change very quickly. Outsourcing providers assume and manage much of this risk for you, with specific industry knowledge, especially security and compliance issues. They generally are much better at deciding how to avoid risk in their areas of expertise.

Outsourcing allows MSPs to better help businesses leverage technology to deliver more of what they intend to. In reality, outsourced partners are just an extension of an MSPs in-house team.

It can be an incredibly valuable asset to an MSP business, no matter how it’s used. From customer-facing services like help desk, NOC, and out-of-hours to recruiting a dedicated IT professional to work alongside your in-house team. In the end, it’s all about how much of a positive impact outsourcing can make on a company, your staff, and your customers.

Next Steps

It is easy to see why so many MSPs are outsourcing their IT services. If you would like to gain complete peace of mind knowing that a highly trained team are on hand 24/7, ensuring your service levels remain high and your customers happy get in touch today.

Find out how Inbay’s white labelled outsource services can help your MSP business and contact us to arrange a call with an Inbay representative.

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