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Managed Service Provider: Advantages and Disadvantages

By: Barry Utesch

Warehouse worker and manager looking at laptop in a large warehouse-2

When a business outsources its Information Technology (or a portion thereof) for a set monthly price, this is probably most commonly seen in an organization that does not need a whole IT person. When a business finds that they need 10-20 hours per week of IT to support, this is the right time to start interviewing managed service providers. This does not mean that the solution will not work for an entire IT department. Many large publicly traded businesses outsource their Information Technology to firms like IBM and HP. They find it to be more cost-effective to outsource their IT even when it is dozens of people. 

Hear what our clients have to say about TCS’s Flat Fee IT program.

Possible Disadvantages of Managed Services:
  • You will not have the same level of control with an outsourced firm that you will with W2 employees.
  • Your primary application(s) will still require a “resident expert,” so Managed Service does not do 100% of what you need.
  • If you hire an employee, they will be your resident expert on all things technical, and you can probably just hand everything to them. Managed service providers are more of an IT department where you need to submit a ticket.
  • Some Managed Services firms do not have Client Strategy Managers to discuss strategy or needs for the future – you might want to ask questions around this because you are going to need it. 
  • Expect some turnover within the Managed Services firm and the necessary learning curve. 
Some Advantages of Managed Services:
  • No PTO or training costs for IT.
  • Multiple people are familiar with your account, not just one.
  • Understanding and best practices brought from experience at other clients. Internal IT may not even know the right questions to ask.
  • You want IT to be working towards IT goals, not being an independent department.
  • Quality of “tools” used to manage your network superior to what would usually be purchased.
  • Ability to put extra hours on a problem due to the size of Managed Services providers work force.
  • Internal IT benefits by keeping everything the same because that means less work. 

Total Computer Solutions has been a Managed Service provider for over 15 years, long before there was the term ‘Managed Service.'  For some of our clients, it is an all you can eat buffet for one monthly price, and for others, it is a particular set of services for a fixed monthly price. Call us today at 336.804.8449 or fill out a form if you would like to be contacted by one of our representatives to learn more about TCS’s Managed IT Services.

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