Can Managed Services Reduce Total IT Cost?

Enterprises of all sizes have to contend with capital and cyclical expenses. These expenses relate to accounting, business processes, business IT support, development, helpdesk services, and much more. In this scenario, managed services providers help fill the skills gaps, enhance efficiencies, and reduce costs.

What started in the manufacturing sector has grown exponentially across the technology vertical. Today, companies can take advantage of asset and resource allocation management, IT support, and even software as a service (SaaS) models specifically designed to minimise capital expenditure.

Cutting IT costs through managed services depends on the organisation and business model. Sometimes companies are equipped to handle IT operations internally, efficiently, and cost-effectively. But most often, small and medium-sized businesses find that they can’t keep up with the rapid evolution of technology.

Whenever this is the case, enterprises benefit from outsourcing some or all IT operations to a managed IT services provider.

Let’s take a quick look at how managed services help reduce total IT costs:

1. Reduce IT infrastructure Costs

Setting up your own enterprise IT infrastructure demands massive investment in both hardware and software (and let’s not forget personnel). For example, when businesses leverage managed IT services and move to the cloud, they immediately access substantial savings.

They don’t have to invest in an in-house data centre, and they don’t have to pay for prohibitive expenses like power, cooling, software, storage, security, and more. What’s more, the cloud services provider will provide network support, systems administration and will keep track of hardware and software updates.

The best part of managed infrastructure services is the fact that you’ll never have to worry about updating your hardware and software ever again. Your business IT support services provider will ensure that you’re always working with the latest technologies. Sometimes they will also offer software like Office 365 at a discounted rate.

2. Reduce Operational Costs

Deploying IT infrastructure is one thing. Maintaining it is another. The maintenance of robust enterprise infrastructure requires a dedicated team of experts to oversee it daily. Maintenance costs are also unpredictable. You never know how much time and money it’s going to cost to resolve a problem.

Managed IT services help eliminate surprises down the road and provide maintenance and security services at a fixed cost (monthly or yearly). With the help of cutting-edge tools and experienced professionals, your outsourcing partner will monitor the infrastructure 24/7, engage in regular backup and retention, and minimise the risk of downtime by resolving potential problems in real-time (saving you thousands of dollars).

3. Reduce Human Resources Costs

Software engineers and technology professionals are in high demand and don’t come cheap. This makes hiring and retaining a full-scale IT support team will be expensive.

The ongoing tech talent shortage in Australia also makes attracting IT professionals much more challenging. If you manage to hire some engineers, you also have to consider training costs, benefits, and overhead expenses (to keep them on-premises).

Often, IT departments are overwhelmed with mundane and manual work like maintenance or fixing minor issues. When managed IT support services take on this responsibility, your staff is free to focus on what’s important, your business, and your customers.

This approach goes a long way to streamline processes, improve operational efficiency, and boost productivity. Happy employees are also easier to retain in a highly competitive labour market.

When companies are supported effectively by business IT support services, they can invest more in core business teams. This means that you’ll be able to add more qualified personnel, allowing you to scale without resource-related bottlenecks.

Managed services help reduce total IT costs. It’s just like renting or leasing an office space for a few years rather than buying the whole building. You also don’t have to deal with expenses related to infrastructure depreciation, hiring costs, or worry about creating additional space for new employees.

Are you looking for a managed IT services provider to enhance operational efficiencies, improve productivity, and cut total IT costs? We can help, schedule a commitment-free consultation now.