In an era of rapid technological advancements, having managed IT services for small businesses in place is essential for staying afloat and growing. Why is that?
As we all rely on technology, it’s becoming a big problem for small and medium-sized businesses (SMEs) to keep up with all the costs and complexities of maintaining in-house IT expertise. Managed service providers (MSPs) are there to help, offering a lifeline to businesses trying to make their way through the complicated digital world.
The Cisco 2023 white paper shows that the managed services market is taking off. It says that the total addressable market (TAM) will be $357 billion, which is a huge increase. This growth is mainly due to the rising demand for solutions that deliver results.
And these days, businesses want more than just simple task completion. They’re looking for tangible business results and value from their IT investments.
One of the main things we learned from the UK research is that the MSP sector brought in a whopping £52.6 billion in revenue in 2022. That’s £29.1 billion directly to the UK’s Gross Value Added (GVA). This shows just how much MSPs contribute to the economy, especially when it comes to helping businesses grow and innovate.
So, let’s look at some of the top reasons why managed IT services are a great choice for small businesses in Australia.
Benefits of Managed IT Services for Small Business
Cost Efficiency
One of the best things about managed IT services for small businesses in Australia is how much they can help you save on costs. Instead of hiring and paying for a full-time IT team, businesses can get the help they need from managed service providers (MSPs).
This change from fixed costs to variable expenses can lead to big savings, which means businesses can use their resources in a more strategic way.
A great example of this is in cybersecurity management. For example, Davey Water Products partnered with Interscale for ongoing IT support and security management. This led to a huge 95% drop in the time spent on minor security issues.
This means there’s a big saving to be made, which frees up valuable internal resources to focus on the things that matter most.
Optimising Performance and Measurable Gains
As well as saving money, managed IT services make a big difference to key process metrics, which in turn makes things run more smoothly. This comes from the fact that MSPs know the industry inside out and use automation to make IT processes more efficient.
With managed IT services, there have been real improvements in things like how long it takes to resolve incidents, implement changes and avoid predictable failures.
The case of Davey Water Products is a great example of this benefit in action. After teaming up with Interscale, they saw a big drop in how long it took to respond to security incidents. Interscale now deals with security alerts in about 15 minutes, which is a big improvement on the previous 4-hour response time.
This quick response time not only means less downtime but also shows that MSPs can make processes more efficient, which helps businesses perform better.
Tapping into Expertise
One of the best things about managed IT services is that they give you access to lots of different experts in different areas. This is a real advantage for small businesses that often don’t have the resources to hire in-house specialists for every IT need.
The Harvard Business Review report shows how MSPs help businesses make the most of specialised skills, including cybersecurity and cloud solutions, without the high costs of hiring full-time staff.
The research shows there are around 3,000 UK-managed service providers offering cybersecurity solutions, which goes to show there’s plenty of specialised knowledge out there in the MSP landscape. This diverse expertise means small businesses can tackle a whole range of IT issues, giving them the support they need to grow and succeed.
Enhancing Service Delivery
Managed IT provider can help companies to improve the quality of IT services overall. MSPs have the know-how and resources to make continuous improvements, make IT systems more reliable, and perform better.
This means things run more smoothly, there’s less downtime and productivity goes up. One great example of how this works in practice is the case study of Mount Evelyn Christian School. The school was looking to improve its internet connectivity and network security.
By teaming up with Interscale, they switched from a public network to a private one, making their internet safer and giving them a much faster connection. This better network setup means the school can provide a higher quality of IT service, which helps staff and students work more efficiently and productively.
Increased Customer Satisfaction
One thing that’s often overlooked about managed IT services for small businesses is how they can really improve customer satisfaction.
If businesses make IT services better, customers will get more of what they need, when they need it, and from people who know what they’re doing. This will make customers happier and more likely to stick around.
For example, the Harvard Business Review points out how important it is for MSPs to make sure that essential business functions are available 24/7. By teaming up with an MSP, businesses, especially e-commerce companies, can guarantee website uptime and fast loading speeds, which are essential for keeping customers happy online.
This reliability and responsiveness can lead to fewer customer complaints and more positive reviews, which in turn leads to improved customer satisfaction.
Higher Efficiency and Performance
Managed IT services can help businesses work more efficiently and productively by streamlining their IT processes and optimising their resource use. This is especially important in today’s fast-changing business world, where adapting and responding quickly is crucial for success.
For instance, the Harvard Business Review looks at how MSPs make it easier for people to work flexibly and improve teamwork by using cloud-based solutions. This means employees can access work files and apps from anywhere with an internet connection, which makes the workforce more agile and responsive.
It’s worth mentioning that the research on UK-managed service providers shows that cloud solutions are the main service for 60% of MSPs. This shows how widely used and important cloud-based solutions are for improving efficiency.
For reference of the challenges, please refer to “7 Challenges of Managed IT Services: The Good, The Bad, & The Strategy.”
Staying Ahead on Regulatory Compliance
Keeping up with industry standards is a big deal for businesses of all sizes. Managed IT service providers are a huge help to businesses trying to make sense of all this.
Research on UK-managed service providers shows how managed services are key to staying compliant with cybersecurity and data protection regulations, especially as new requirements come in. The proposed updates to the NIS regulations could affect up to 1,700 large and medium-sized MSPs in the UK.
It’s worth mentioning that these MSPs represent a big chunk of the market, accounting for 90% of the sector’s revenue.
A great example of this is how Davey Water Products teamed up with Interscale to implement mobile device compliance policies. Thanks to this partnership, Davey Water Products now has 100% compliance with security policies for all work devices, which has really helped to reduce the risk of data breaches.
This shows how managed IT services for small businesses can help stick to the rules and stay safe from potential problems.
Disaster Recovery
Managed IT services provide solid solutions to help you avoid risks and get back up and running quickly if you suffer a cyberattack, data loss or other unexpected issues.
Davey Water Products is a great example of how partnering with an MSP for disaster recovery can be really beneficial. They put together a solid plan that lets them recover data quickly and keep things running smoothly.
The research on UK-managed service providers showed that data security and disaster recovery services are pretty common in the MSP landscape. It’s worth mentioning that 60% of MSPs offer some form of cloud solution, often including data backup and disaster recovery services.
These cloud-based solutions provide a safe and flexible way to store important data and apps, so you can get back up and running quickly if something goes wrong. The study shows there’s a growing need for these services, as more and more businesses rely on digital infrastructure and cyberattacks become more common.
Mature IT Processes
One of the best things about working with Managed IT service providers is that they help you set up proper IT processes.
These processes, which cover things like documentation, monitoring and continual improvement, are key to getting better control of IT operations and creating a more stable and predictable IT environment.
João Serrano and colleagues make a good point in their paper. They show how process maturity can lead to lower operational costs and greater efficiency.
Mature processes help organisations to make their operations more efficient, make the best use of their resources and deal with potential issues before they become problems. This leads to better performance and savings on costs.
A great example of this is a small healthcare provider putting HIPAA-compliant data security measures in place. By teaming up with an MSP, the healthcare provider can make sure they have regular data backups and stick to the rules on keeping data safe, which helps to cut the risk of data breaches and fines.
Boosting Employee Satisfaction & Morale
Let’s be fair: How happy your employees are is a big part of how successful your business is overall. That’s why the best managed IT services for small businesses can help you boost your employees satisfaction and morale.
By managing and maintaining IT infrastructure, MSPs free up employees to focus on their main tasks and avoid getting frustrated by IT issues. This can help create a happier, more positive work environment and boost job satisfaction.
João Serrano and colleagues say having clear and controlled IT processes is a great way to boost employee morale and productivity. Fortunately, MSPs create a better, less stressful work environment, which leads to greater job satisfaction.
For instance, an MSP managing software updates and troubleshooting for a small accounting firm can really cut down on downtime and frustration for employees. By making sure systems are up to date and running smoothly, the MSP lets employees focus on their accounting tasks without being distracted or delayed by IT issues.
How to Choose the Best Managed IT Services for Small Business in Australia
Picking the best managed IT service provider is all about finding one that offers local support and meets the specific challenges Australia’s businesses face.
Running an IT infrastructure is a whole other ballgame for small businesses in Australia. The good news is, there are outsourcing IT management, which is often a great option for small businesses that don’t have a lot of resources and need some specialised expertise.
But how to choose the best one?
When you’re looking at managed IT services, it’s crucial to select a provider that aligns with the specific needs and goals of the business. Make sure you choose a provider that has experience in your industry, offers transparent pricing, and can show you case studies or examples of how they’ve successfully managed IT for similar businesses.
Take Interscale’s work with Mount Evelyn Christian School and Davey Water Products, for example. It shows how important it is to have a tailored approach that fits in with what your business needs. It’s also worth looking for providers who can grow with your business, offering comprehensive support that covers everything from cybersecurity to disaster recovery.
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In Closing
By teaming up with managed service providers, small businesses can leave their IT to the experts while they focus on what they do best. From cutting down on downtime to making sure you’re up to speed with the latest regulations and planning for the future, managed IT services have got you covered.
If you’re a small business looking to stay agile and resilient, investing in managed IT services is a smart move that can help you succeed and stay afloat. Yes, the managed IT services for small businesses are the perfect tool to stay ahead of the competition.
References
- Department for Science, Innovation & Technology. (2024). Research on UK managed service providers. GOV.UK.
- Zagury, A., Foster, A., & Patel, P. (n.d.). Building the future customers want with Managed Services. Cisco.
- Harvard Business Review Analytic Services. (n.d.). Next-generation managed services: Journey from cost to value. Deloitte.
- Serrano, J., Faustino, J., Adriano, D., Pereira, R., & da Silva, M. M. (2021). An IT service management literature review: Challenges, benefits, opportunities and implementation practices. Information, 12(3), 111.
