Why Use a Managed Service Provider?

The need for IT solutions continues to grow at an alarming pace. It’s expected the industry will reach $193 billion by 2019, a 12.5% Compound Annual Growth Rate.

It’s no wonder small businesses are struggling to keep up with IT demand while being able to retain high levels of services without sacrificing profits. If this sounds like you, a managed service provider (MSP) may be your best solution.

Let’s look at four common ways partnering with an MSP can help your business grow its profits (and its reputation):

#1 – It Scales Your Business

Adding a new product or service to your business isn’t a decision to take lightly. For starters, there needs to be a guarantee you’ll have enough customers interested in the new service to make it worthwhile for your company.

In addition, you’ll need to have enough staff to handle the service, necessary equipment, training, advertising, and a slew of other off-the-top expenses.

In other words, it may be years before you see any real profit from it.

MSPs can help you reduce this risk by handling most of these expenses for you. This way, you’re able to offer more products and services to your customers while cutting most of the overhead.

By scaling your business, you’ll start seeing profits much sooner.

#2 – You Gain a Competitive Edge

It’s becoming harder for small businesses to compete on things like customer service and product offering. Drowning in the sea of me-too competitors, many businesses have resorted to competing on price alone.

When this happens, you’re not just forced to reduce your profit margins. Sinking profits means making cuts in other areas, particularly in your payroll budget.

As a result, you won’t be able to offer the same high level of service your customers expect, which could send them to your closest competitor and force your profits to plummet further.

With a MSP, you’re able to offer the same high-quality services as larger competitors without the high expenses.

#3 – You Can Create Stickier Customers

Banks have long known the secret to making sticky customers. The more accounts or services someone has with a company, the more likely they’re to remain a customer.

It might be too costly for you to offer some services with your own resources. Using a MSP helps you create stickier customers by giving you access to IT solutions that scale with your business.

#4 – It Offers Peace of Mind

Saving money isn’t the end-all reason for switching to an MSP. Along with reducing your overhead, you also reduce your involvement with the problems associated with the services you offer.

For example, if something goes wrong with the cloud, servers are down, or maintenance is needed, your MSP handles it all. This means you have fewer problems to tackle and can focus more of your energy on growth and profitability.

In Closing

Choosing to use a MSP is the easy part. Finding the right one, however, is one of the biggest business decisions you’ll ever make.

Contact Sagacent today to learn how managed IT services can help you reach your business goals.

Sagacent Technologies offers technology management and support, including proactive/preventative maintenance, onsite and offsite data back-ups, network and security audits, mobility solutions, disaster planning and emergency business resumption services. The company serves clients of 10 to 150 employees within the Silicon Valley region.