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7 Advantages of outsourcing IT through Managed Service


In April 1977, Apple kicked off the boom in personal computer sales that’s run unabated ever since, and that’s evolved into the “digital revolution” that underlies virtually every business today. Now, more than 40 years later, it’s impossible to envision a successful company of any size running without an IT department. Yet, as the technology that supports a company has become more and more complex, the skill sets required of IT department employees has followed the same trend line. They need to be qualified and certified in any number of technology categories. Hiring a Managed Service Provider (MSP) gives you seven advantages over trying to staff up with in-house employees.

Your 7 Key Advantages

Managed Service Providers offer a number of pricing models. An MSP might offer a “monitoring only” plan in which they monitor your network, then send alerts when problems appear. Or, they might take a more proactive approach to watching your entire IT operation and charge on a per-user or per-device basis. Or, an MSP might offer an “all you can eat” model that covers your entire IT infrastructure.

#1 Lower Cost

No matter the pricing model, contracting with an MSP allows you to share the cost of its expert staff with other customers. According to Joe Hadzima of the MIT Sloan School of Management, “basic salary, employment taxes and benefits are typically in the 1.25 to 1.4 times base salary range — e.g., the cost range for a $50,000/year employee might be $62,500 to $70,000.” Furthermore, if you were to look at the Bureau of Labor Statistics information tables, you’d find that IT staff salaries range from about $88,000 to more than $114,000 per year. Using Hadzima’s multipliers with those current figures means a single IT employee cost between $110,000 and $159,600 when all taxes and benefits are included.

Clearly, sharing the cost of such expensive employees with hundreds of other customers just makes sense.

#2 Reduce Risk

Government regulations, technologies, markets, financial conditions and markets are all in a constant state of change. Managing risk is at the foundation of what MSPs do, whether risk comes from security, compliance or technology concerns.

#3 Greater Experience

Managed Service Providers not only insist on hiring the most qualified people. The people they do bring on board spend their time supporting and working with scores of customers who each present different technology issues. As a result, an MSP’s “typical” employee is exposed to a much broader range of issues than an in-house employee and is therefore more capable of delivering superior service.

#4 Implement New Technology Faster

Because MSPs must be alert to new technologies as they come to market, they’re able to advise you of those that could benefit your IT operation.

#5 Predictable Monthly Spend

Your IT management budget is regular and predictable. Should you need to make adjustments, you can increase or decrease the use of services.

#6 Better Security

An MSP will oversee your network, servers and workstations in compliance with the latest standards and using the latest technologies to prevent security breeches, including specific measures to counteract those new threats that never seem to stop coming. This focus gives you better security and less risk for your business.

#7 Maintain Compliance

An MSP needs to be aware of and respond to laws and regulations as they are implemented if they are to maintain their competitive advantage as a service provider. MSPs recognize that keeping your IT operation in compliance with government regulations is a fundamental obligation.


MSPs are all about Best Practices, which means that your investment in an MSP will give you increased efficiency, productivity, security and compliance. For more details about managed IT services, contact us here.



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