Managed Network Services

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Top Reasons Why Some Companies Avoid Managed Network Services

Posted on 19 May 2017 | 11:29 am by

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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