What Is Managed Services? 3 Things to Know About This Upcoming Billion-Dollar Market

Allied OneSource • November 1, 2023

With the constant innovations in technology as well as the consistent changes in the business landscape, making efficient business decisions has been harder than ever. Company leaders often struggle with prioritizing different aspects of their organization.

For example, should you allocate more budget to hiring tech-savvy professionals, or direct it to critical business projects? To solve this dilemma, consider exploring managed services for your company's needs.

Understanding Managed Services

Managed Services have emerged as a popular option in the business world. It can offer assistance in more than one aspect of your business. This practice involves outsourcing specific roles and responsibilities to third-party providers, so you don’t have to find individual candidates for these roles.

While managed services are commonly associated with business functions and information technology (IT) related tasks, their scope extends beyond these domains.

Managed Services Providers (MSPs) are trusted partners that companies engage to oversee and execute assigned tasks on behalf of their clients. MSPs are dedicated to fulfilling these responsibilities to enhance their clients' overall efficiency and organizational success.

As mentioned, managed services can handle different tasks based on the needs of those who hire them. The following are just some examples of the roles and responsibilities they can fulfill for your company.

Cloud Computing Services - The recent technological advances push companies to have more efficient ways of storing and managing data. MSPs can handle servers that would virtually store important information and provide stakeholders easy access to them through cloud services.

Management of IT Infrastructures - It's difficult for a business to run smoothly if not all of its tools are working properly. To maintain a stable workflow, MSPs can ensure your hardware, networks, and other tools are in optimal shape and will perform well during the day-to-day working process.

Cybersecurity Services - Another tech-related solution to recent issues is strengthening your organization’s cybersecurity. Through enlisting managed service, you can rely on experts to make your systems more secure and protected against threats.

3 Important Things You Need to Know about Managed Services

Staying ahead often means navigating complex decisions. This is where Managed Services emerges as a compelling solution. Here are some things worth looking into:

1. Trends Surrounding the Service

Managed Services have been gaining traction in many industries all over the globe. There have been recent studies and trend analysis conducted to predict the future of the said service.

For example, Fortune Business Insights anticipates an impressive 13.6 compound annual growth rate (CAGR) of 13.6 percent until the year 2030. From a market size of 283.90 billion in 2023, it’s expected to continue growing up to 671.14 billion U.S. dollars in seven years' time.¹

Although there are different reasons behind its growing popularity, there's one factor that greatly contributes to the high demand for managed services - advancements in technology.

As IT systems and structures develop, the complexity of handling and maintaining them also increases. Instead of continuously finding candidates and hiring them for every tech trend, companies are opting to seek third-party providers that can effectively offer them the resources and expertise they need.

This gives them the flexibility needed to scale their workforce, focus on more important tasks, and remain a competitive player in their chosen industry.

2. Benefits of Utilizing the Service

Of course, Managed Service Providers won't gain popularity if they don't have great things to offer company leaders like yourself. To help you learn more about this upcoming billion-dollar market, the following are the advantages you can get from joining this trend.

Access to a Wider Network

Managed Service Providers and the companies they work for are known to have extensive connections in different industries. If you enlist the right third-party partners, you’ll gain access to an extensive professional equipped with the latest skills and talents you need for your organization.

By having access to a wider network, you’re also improving your chances of hiring top candidates who other companies might not even be aware of. For example, your MSP may put you in contact with passive candidates perfect for the roles you're trying to fill.

Control Over Company Costs

MSPs assures you high-quality work for a stable price. This fixed service fee gives your company the ability to predict its expenses and effectively allocate the rest of its budget.

Instead of worrying about the changing prices of trainers for seminars or the varying price of the equipment you need for a certain project, you just need to pay the agreed amount with your third-party provider. Moreover, it gives your company the chance to scale its workforce on a needs basis while still staying within its intended budget.

Personalized Staffing Solutions

As mentioned before, your company would have the ability to scale your workforce based on your needs. Other than this, you can also have access to individuals with specialized skills on demand.

Imagine you decided to work on a project, but in the middle of the process, you needed an expert on new software. With your third-party provider, you can find a professional who fits your set requirements within a short amount of time. You don't even have to exert any effort since your MSPs can handle time-consuming tasks such as recruitment and onboarding.

Improved Company Efficiency and Productivity

Managed Services is an efficient way to deliver services without your supervision. By outsourcing non-core functions of your organization, you’re giving your leaders more resources to focus on important tasks. You’re also helping them save time and energy that could be dedicated to actions vital to meeting your company milestones.

Remember, an efficient company can only be achieved when its people are working efficiently as well. This means you're required to help them improve their productivity at work. What better way to do that than making sure that they aren’t overworked and are receiving the support that they need?

3. Checklist to Find the Ideal Managed Service Providers

No matter how many benefits professional services like this could offer, you won't benefit from them if you don't find the right staffing company. Below is a checklist you can use to help you find the best company offering managed services.

Think of the company you have in mind and answer the questions below based on what you've researched about them. You can also craft your own questions based on this list and ask them yourself.

Is the company experienced in providing Managed Services?
Do they have a positive reputation in the industries they serve?
Can they offer us tailored solutions based on our company's needs and issues?
Are they knowledgeable about the laws and rules of compliance in our state?
Do they value customer experience and satisfaction?
Are they proactive in monitoring their past and current clients?
Do they have security measures in place?
Are they transparent in their pricing?
Is it easy to communicate with them as a company leader?
Do they respect our goals and objectives for our company?

Remember, the more 'yes' you say, the better choice the company is!

EXPERIENCE MANAGED SERVICES WITH ALLIED ONESOURCE

Our team at Allied OneSource comprises skilled professionals well-versed in the latest tools and technologies. We’re ready to provide tailored solutions aligned with your current requirements.

Let us assist you in efficiently managing your company and driving overall success. Contact us today to learn more!

Reference

1 Fortune Business Insights. "Managed Services Market Size to Surpass USD 671.14 Billion by 2030, Exhibiting a CAGR of 13.1%." Business Insights, 18 Jul. 2023, www.globenewswire.com/news-release/2023/07/18/2706186/0/en/Managed-Services-Market-Size-to-Surpass-USD-671-14-Billion-by-2030-exhibiting-a-CAGR-of-13-1.html.

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