According to the Managed Service Provider (MSP) Institute’s MSP Index 2000, there are many reasons why companies hire MSPs. Here are some of the top reasons:
- Reduce and control operating costs. When you outsource, you eliminate the costs associated with hiring an employee, such as management oversight, training, health insurance, employment taxes, retirement plans etc.
- Improve company focus. It is neither practical, nor possible to be a jack of all trades. MSPs let you focus on your core competencies while they focus on theirs.
- Gain access to exceptional capabilities. Your return on investment is so much greater when you contract out information technology to a firm that specializes in the areas you need. Instead of just the knowledge of one person, you benefit from the collective experience of a team of I-T professionals. Managed Service Providers require their I-T staff to have appropriate industry training and certifications.
- Free-up internal resources for other purposes. You may have someone in your office that is pretty good with computers or accounting, but most likely these were not the jobs he or she was hired to do. If they are spending time taking care of these things, who is doing what they were hired to do? Hiring a MSP allows you to retain employees for their highest and best use, rather than wasting their time on things that may take them longer than someone who is highly trained in these specific areas.
- Resources are not available internally. On the flip side, maybe you don’t have anyone in your company who can manage your I-T needs, and hiring a new employee is not in the budget. A MSP can be a feasible alternative, both for the interim and for the long-term.
- Maximize restructuring benefits. When you are restructuring your company to improve costs, quality, service, or speed, your non-core business functions get pushed aside. They still need to be handled, however, and a MSP is an optimal way to do this. Don’t sabotage your restructuring efforts by failing to keep up with non-core needs.
- Function difficult to manage or out of control. This is definitely a scenario when MSP experts can make a big difference. But don’t make the mistake of thinking you can forget about the problem now that it’s being “handled.” You still need to be involved even after control is regained.
- Make capital funds available. By outsourcing non-core business functions, you can spend your capital funds on items that are directly related to bank products and customers.