How Managed Services Providers Make Businesses More Profitable

Mar 2, 2017 | Managed Services

Business owners and decision makers are always wondering what they can do to increase profitability. Suggestions generally reflect customer service enhancements, new business opportunities, and potential product initiatives. Something to consider is the value of business technology as it improves operations which increases profitability. One of the highest costs of implementing and maintaining these technologies is labor. You can increase profit margins simply by outsourcing IT.

Increased Efficiency
Automation and time management are essential functions of your business that can help you make more money. A Managed Service Provider (MSP) will ensure that your systems and staff stay organized to increase efficiency by constantly monitoring and updating your technology. According to CompTIA’s annual Trends in Managed Services study, improving efficiency and reliability is the main driving factor for going with an MSP for 56% of companies with 100 or more employees and 47% of companies with fewer than 100 employees.

Reduced Costs
You can reduce overall expenses by outsourcing IT operations. According to CompTIA’s study, ROI and cost reduction was a driving factor for using an MSP for approximately 30% of all companies. This money can be reallocated to marketing, sales, business development, and other departments within your company to increase profit. Outsourcing IT also allows you to budget for the year based on a fixed monthly fee rather than unpredictable technology expenses if you pay as you go.

Enhanced Focus
Staying focused on your core business is difficult when you have to deal with the burden of technology management as well. Although you may hire a talented staff, executives must still be involved in the strategy and coordination of technical management. You can eliminate this responsibility by outsourcing your IT in order to remain focused on your business mission. Removing unnecessary problems will drive more profit for your company. For example, aspects of Managed Services have helped a global insurance company achieve 60% of revenue savings.

Better Customer Service
Don’t let technical issues affect interactions with your customers. Technical difficulties may be one of the most frustrating aspects of any job and those frustrations are often passed on to customers and clients. Some examples of these technological issues include unplanned downtime, cyber-attacks, and slow internet connectivity. Take advantage of the opportunity to eliminate these setbacks from your business. Having peace of mind knowing you can rely on your technology without worries is crucial for any business. Let IT professionals handle your technology so you can rest assured that technical issues won’t interfere with customer interactions and relationships.

Increased Productivity
When computer loading time is slow and internet connection is poor, employee productivity levels are limited due to technology. Time is wasted on issues that can be prevented through proper IT support. Your business’ productivity should not be affected due to underperforming technology. This reduces revenue over time and can be prevented by partnering with a reliable provider to improve employee productivity.

About the Author

This blog was written by Chris Thompson at CPI Solutions. CPI is a managed services provider that connects businesses throughout Southern California by combining a comprehensive set of IT support services and a breadth of expertise to deliver high impact solutions focused on improving business performance. To stay up to date with technology trends and business tips, subscribe to our blog here.