Are IT departments losing ground to managed service providers?

Written by Bruce Hughes on . Posted in Computer Innovations

Although the adoption of managed IT services has been quite slow, a fact revealed by several studies in the field, many companies are looking with hope at the opportunity of changing in-house IT departments with a managed services provider. It’s not just about the fact that IT departments tend to be autocratic and stagnant, but they also absorb a lot more capital than outsourced services, especially since companies providing managed IT services have started offering service packages at fixed rates. As a result, the decision of whether a business should shift from an internal department to an outsourced service has gone from the power of IT managers to that of CFOs or procurement officers for the vast majority of businesses, as it has become a financial issue. This shift has had a great impact on IT providers as well, because they now have to promote and sell their services not only to chief information officers, but also to business executives.

The fact that IT departments seem to be losing ground to companies providing managed IT services is easily explicable under the circumstances, seeing that their benefits are numerous and they can help businesses not only improve technical feeds and speeds, but also increase efficiency and have a better dispersion of resources. However, as already said, a managed services provider now has to make a business pitch as well, trying to make companies see how its services will save them money and provide them with a better control over their costs. Therefore, providers have to adopt an efficient marketing strategy, which turned out to be poor so far, because most of these companies offer the managed services as an addition to the traditional integration and reseller services that are aimed at the in-house IT departments. This aspect has made it difficult to clearly promote and channel managed IT services as a stand alone provision. However, the future is bright for providers of managed IT services, their only need being to solve the marketing challenges.

All things considered, even though the adoption of managed IT services may be slow, there is an increasing number of businesses interested in shifting from an internal IT department to a managed services provider for all the information technology needs of the company, from IT support and network security to cloud computing and more. Indeed, in-house IT departments are losing ground and managed services are enjoying not a high market demand, especially since the rise of BYOD and consumer tech. In a world where no business can survive without computers, networks and many other technology information services, managed IT service providers have an open path to success, as long as they are able to market their services as a business pitch as well, and not just an IT pitch.