Interscale Content Hub – As companies look to cut costs without sacrificing reliability, many are turning to Managed Service Providers (MSPs) to handle their IT needs.
However, the challenges of Managed IT Services have become increasingly complex and multifaceted.
Outsourcing IT management brings with it a whole range of risks, from security vulnerabilities to compliance issues, which can have a big impact on businesses.
These challenges are especially big in an environment where new technology, a lack of tech talent, and new regulations are changing how organisations operate.
That’s why we’re going to look at the complexities and potential pitfalls of outsourcing IT services. Let’s have a closer look at some of these common challenges.
Benefits of Outsourcing IT Management
Cost efficiency is a big plus. The CISA report “Risk Considerations for Managed Service Provider Customers,” shows how MSPs can often provide services at a lower cost than maintaining an in-house IT department, especially for small and medium-sized businesses.
The USA Federal Inspectors General (IGs) highlight in “Top Management and Performance Challenges Facing Multiple Federal Agencies,” report backs this up, too.
It shows that agencies like the Department of Housing and Urban Development (HUD) spend a big chunk of their IT budget—between 70% and 95%—on maintaining legacy systems, which gets in the way of modernising.
Outsourcing lets businesses avoid these high maintenance costs and put their resources towards innovation and growth.
Another big plus is access to specialised expertise. The Deloitte-sponsored paper, “Next-Generation Managed Services: Journey from Cost to Value,” highlights the growing need for specialisation in areas like cybersecurity and tax compliance.
MSPs can give you access to a whole pool of experts with the latest knowledge and skills, which can be tricky and expensive to get in-house.
As the Deloitte paper shows, Pfizer’s decision to outsource its global tax compliance functions is a great example of this.
Another plus is outsourcing IT management lets you focus on your main business activities.
By getting help with IT, businesses can free up internal resources to focus on what they do best.
Another big plus is that it helps to keep your data safer and reduces the risk of any problems.
MSPs are great at IT security because they focus on it full-time, so they can often provide more robust security measures than many businesses can manage internally.
Another plus is that it can grow and change as your business does. As businesses grow and their IT needs change, MSPs can easily adjust the services they provide to meet these evolving requirements.
The Deloitte paper makes a good point: businesses today need to keep changing to stay competitive. This means that MSPs need to be able to adapt and provide scalable solutions.
As a bit of background, it might be helpful to take a look at “Benefits of Managed IT Services for Australian AEC Firms“
What is the Difference Between Managed IT Services and In-House IT?
In-house IT is when your company has its own IT department, who are in charge of all things tech-related.
This covers everything from keeping hardware and software up to date to network security and helping users with any issues.
But, as the CISA report shows, keeping an in-house IT team takes a big investment in both people and tech, which isn’t always doable for smaller businesses.
On the other hand, managed IT services involve handing over your IT responsibilities to an external provider, like Interscale.
Your MSP becomes your virtual IT department, taking care of day-to-day IT operations and helping you out before any issues affect your business.
The main difference is in the level of control and responsibility. If you have your own IT team, you’re in charge of your IT environment and you’re also responsible for managing it and dealing with any risks that come up.
With managed IT services, you and the MSP share the responsibility.
They take care of your IT, so you can focus on your main business. But you need to make sure you’re all on the same page and that the service is right for you.
Common Challenges in Managed IT Services
Security Concerns
Security is probably the biggest worry when it comes to managed IT services. The CISA publication makes it clear you’re still responsible for security even if you outsource your IT.
In fact, it can even make the risk worse by introducing new vulnerabilities through the MSP’s own systems.
The report shows how worrying it is that nation-state affiliated Advanced Persistent Threat (APT) actors have historically targeted IT service providers, using the trust and network access they have been given to their advantage.
The financial sector isn’t immune either. The FDIC OIG found that there were control weaknesses that made cyber-attacks more likely.
So, it’s vital to have solid security measures in place, keep communication channels open, and share responsibility to reduce these risks.
Service Quality and Reliability
The quality and reliability of the service an MSP provides can have a big impact on how an organisation operates.
The IGs report highlights how agencies often have outdated IT systems which can get in the way of them doing their job.
Similarly, the Deloitte-sponsored paper says businesses today need to keep changing to stay competitive.
This means MSPs need to be able to not only operate but also continuously improve IT services.
Service Level Agreements (SLAs) are pretty important here. They help to define expectations and performance metrics.
Cost Management
While cutting costs is often the main reason for outsourcing IT, one of the biggest challenges of managed IT services is managing costs.
The CISA publication suggests businesses do a proper cost-benefit analysis to weigh up the pros and cons of outsourcing.
The IGs’ report also shows how agencies like HUD have spent a lot of their IT budget on keeping old systems going, which makes it harder for them to modernise.
The move from a purely cost-saving model to one focusing on value creation, as discussed in the Deloitte-sponsored white paper, shows how expectations are changing for MSP engagements.
But there are other things to think about as well, like investing in security, making sure we’re following the rules and getting new tech to work with what we’ve already got.
So, it’s important to know how the MSP charges and to keep an eye on costs so you’re sure you’re getting good value.
Integration and Compatibility Issues
It can be tricky to integrate an MSP’s systems and processes with an organisation’s existing IT infrastructure.
The Deloitte paper looks at the difficulties of managing hybrid cloud and on-premises environments, which can include a wide range of hardware and software assets.
To make sure everything works together seamlessly, you need to plan carefully, communicate clearly and have the technical know-how.
Scalability and Flexibility
Scalability is a double-edged sword in managed IT services.
MSPs can help you scale up quickly, but it can be tricky to do that without losing quality or security.
As businesses grow, their IT needs change, so the services provided by MSPs need to be flexible enough to adapt.
The white paper on next-generation managed services looks at how companies like NYU Langone Health use MSPs to scale their digital transformation efforts.
But this requires careful management to avoid scalability issues.
Compliance and Regulatory Challenges
Compliance with regulatory requirements is a major concern for organisations outsourcing IT services.
The complicated and often fragmented regulatory environment, particularly in areas such as data privacy and cybersecurity, presents some pretty significant challenges.
The IGs’ report shows how these regulatory pressures aren’t just a concern for big organisations, but also for smaller ones that might not have the resources to manage compliance effectively.
Not sticking to the rules can have serious financial and reputational consequences, so it’s crucial for any company using MSPs to make sure they’re on the right side of the law.
Communication and Relationship Management
Having good communication and a solid working relationship is what makes a successful partnership with an MSP work.
The CISA publication makes a strong case for clear communication channels and incident reporting protocols.
The Deloitte paper also says it’s important to be open and have a shared understanding of what we want to achieve.
If you want to have a productive and long-lasting relationship, it’s important to keep the lines of communication open, clearly understand what’s expected of you, and build trust.
In the same vein, you might want to read “7 Types of IT Managed Services & Differences.”
Strategies to Overcome Managed IT Services Challenges
Security is still a big worry for us. The CISA document suggests a shared responsibility model where both the client and the MSP are responsible for managing and reducing risks.
This means doing regular security checks, having strong plans for dealing with security incidents, and following the best cybersecurity practices.
Another challenge is managing costs, especially when moving from in-house IT to managed services.
As the Deloitte paper says, businesses should look closely at the pros and cons of moving to managed services.
It’s important to make sure that the change adds real value, not just saves money.
For instance, businesses should work out what they want from their MSPs in terms of service and delivery, so they know what to expect and what they’re paying for.
At the end of the day, making sure the service is reliable and of a good standard means keeping in touch and managing the relationship well.
The CISA report says it’s a good idea for businesses to keep the lines of communication open with their MSPs, especially during critical incidents.
It’s also a wise move to have regular performance reviews and audits, so you can be sure the services you’re getting are still meeting your company’s needs.
Also, it’s pretty important to be on the same page and work together.
As the CISA report says, it’s important to have open communication and incident reporting procedures in place for a successful partnership with an MSP.
As the Deloitte paper says, regular meetings, clear expectations and a shared understanding of what we’re trying to achieve help us build a productive and long-lasting relationship.
A Strategy to Tackle the Challenges of Managed IT Services: Interscale
What if you could get rid of these IT problems and speed up your AEC projects?
Just picture having a team of experts looking after your IT infrastructure, making sure your tech is always up to date, secure and running smoothly.
Here at Interscale, we’ve got the AEC industry covered with our specialised managed IT solutions.
By teaming up with us, you can say goodbye to the headaches you get from IT management.
We provide modern, reliable IT solutions for your business. Yes, our services help you avoid the risks of outdated technology and unexpected downtimes.
The goal is you can focus on what you do best – designing, engineering, and constructing outstanding projects.
But don’t just take our word for it. We know that choosing an IT partner is a big decision. That’s why we suggest you do your homework.
Take a look at our Interscale IT Managed Services page, read our case studies, and see how we’ve helped other AEC companies overcome their IT challenges.
We’d also love to catch up – maybe over a coffee and a croissant?
Let’s have a discussion about the IT issues you’ve been facing and see how we can help you resolve them.
In Closing
Outsourcing IT management through managed services is a great way to get the benefits you need.
But outsourcing also comes with challenges – and these need to be carefully managed.
The bottom line is to find the right service provider and adopt strategies that fit your business’s specific needs.
Companies like Interscale show how a customized approach can help businesses beat those issues.
That’s why you should get in touch with Interscale. Our experts are ready 24/7 for you to tackle the challenges of managed IT services.
