For
a lot of medium and small sized businesses, having someone who will remotely
manage and monitor their computer is a big no-brainer. Managed network services
provider can enhance reliability, efficiency, maintenance and security and at
the same time, they can lower costs and free up IT staff to focus on more
strategic and pressing projects.
However, based on a new study, it
was revealed that many companies today are no longer using managed network
services providers. What are the common reasons behind this change of heart?
Lack of
Need
There are several small companies
which no longer have an immediate need for the types of services that MSPs
offer since they have switched to the self procured cloud solutions. For
instance, a few years ago, 58% of respondents required outside help to install,
integrate or deploy technology yet this dropped to 48% recently.
Skepticisms
on Cost Savings
Back in the past, cost savings
served as the main reasons why companies move to MSPs. However, it seems that
cost savings are down on the list these days. Users have started to think more
strategically as to what MSPs can bring to the. Cost savings have fallen to the
fourth place as driver of adoption for companies which opt for managed network
services.
Reluctance
with the Idea of Outsourcing to Outside Company
Security is among the main factors
here. Better compliance and security is in second place as the driver for
adoption of managed network services. But, if you try to talk to end customers
who don’t use MSPs, one of their primary concerns is privacy and security.
Concern on
Transition Disruptions
Aside from staffing changes,
switching to new systems needs a certain adaptation on the customer’s part.
This could mean training the employees on new systems as well as revamping all
the business processes.
That is why it only makes sense
that the commonly used managed network services are the ones with the least
impact on employees or those which are easiest to adopt.
Security services like spam
filtering and antivirus are in second place, with 68% of companies using these
and 24% with plans to add them.
Storage ranks 3rd with
64% adoption and 27% are planning to adopt.
Perceived
Loss of Control by Operations or IT Staff
Outsourcing technology function
will not only reduce the degree of control of a company over the details of how
this function is being implemented but this can also move the internal
responsibility for this function from the IT department to the business
manager.
And there are certain companies
which might even start to ask themselves why they will need an IT staff after
all.
Based on reports, 26% of
organizations that have started to use MSPs have lessened IT staff, and 9% got
rid of their internal IT department as a whole.
When the company is smaller, there
are more chances that there will be staff cuts. With companies having 100 or
more employees, 72% kept their existing IT staffing levels yet reassigned
people to some other projects. However, only 41% of companies with lower than
100 employees retained the same headcount.
For
more information please view this blog
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