Managed IT Services aren’t going anywhere. Even specialized managed database services or Power Bi services are going to be around for a long time.
Why?
Recruiting and retaining top talent is hard. Bringing on a managed services or outsourced IT services firm pushes that responsibility and cost onto someone else.
Most CFOs like line items that don’t look permanent. It’s an accounting trick to make things look better. An Outsourced firm can be easily let go. An in-house employee looks more like its ‘needed’ to shareholders and thus a recurring cost.
On Call. It’s hard to manage on call schedules without dropping the ball or causing friction among staff. Usually, a managed services firm will be cheaper to handle 24x7 emergencies than full time employees.
So what do you want to AVOID when considering a managed services or outsourced IT firm?
1- “The Race.” The Race to the bottom of the barrel applies in every industry. DVD knock offs are a great example. Your kids do NOT want to watch “the ice queen” they want to watch Princess Elsa in “Frozen.” Look past the up front cost when considering which database managed services provider to use. Make sure you understand their core value and proposition. The Cheapest is *never* the best. Sometimes it could be “good enough,” but make sure you understand why that is.
2-Location. Where is the firm based, where are it’s employees? Many outsourced IT / Managed services firms are just wholesalers for foreign companies that host IT out of Asia or more commonly south America. That could be a great proposition for you, but if your security calls for an on shore solution, make sure you aren’t fooled.
3- Lack of Expertise. What level of service are you expecting from your remote IT provider? Most firms have a very broad level 1 support, and then escalate to fewer and fewer senior and true EXPERT level IT STAFF. DO NOT HIRE a managed services organization that has to google the answers to questions. Make sure you are always getting a high level of support.
4-Hidden Fees. It’s very common for outsourced IT companies to give you one up front cost, and then nickel and dime you every time you pick up the phone. Make sure you have a thorough understanding of what is and is not covered by your basic contract.
5- Scalability / Breadth of Knowledge. This is a 2fer. I tried separating Business Scalability and Knowledge base but the reasoning was the same. You need a company that will be a good fit for your entire organization, not just a single unit. This allows you to avoid hiring multiple companies for overlapping purposes. Choose an IT provider that can grow with your company, as well as supply all the talents your company needs, from desktop support to database administration, security, and business analytics.
