msp service - what is it

Managed Services - strategic solutions for your business

Managed Services is a form of service that has already established itself in many industries - from manufacturing to HR to IT. It owes its growing popularity to several advantages, allowing a secure and flexible approach to the development of individual company segments. Today we will discuss the phenomenon of MSP service and indicate how to make a wise decision to use this type of service.

What are Managed Services?

The term "Managed Services" refers to continuously provisioning a given process or service. The term is closely related to the concept of "outsourcing," which we discussed more extensively in one of our previous posts: Outsourcing in IT

What exactly does MSP service consist of? A company reaching for this solution entrusts an external company - in our case, a software house - with the ongoing support of a specific process or service. Its scope may include an established creative framework or the entire project; this is defined in a document known as a Service Level Agreement. 

The goal of MSP service is to maintain the high quality of the product while reducing the effort and controlling the costs associated with its maintenance. It is a kind of fusion of offering technological solutions and new product management techniques. As a result, more and more Polish companies are opting for this model. 

The correlation of its growing popularity with pandemic-related changes is quite clear. Analysts from Markets and Markets address this topic, concluding that this period has resulted in permanent changes in the business environment. This means that Managed Services have already become a permanent fixture in our market - and forecasts indicate that the share of this service type will become even more significant.

Where is the popularity of Managed Services coming from?

The IT industry is categorized as one of the global services - and these are still largely dominated by the most developed Western countries. Analysts at Precedence Research indicate optimistic forecasts for this branch of the market, which is expected to grow from a CAGR of $280 billion to $727.1 in 2030.

Compared to North American and Western European countries, Poland remains at the stage of popularization of such services. This is a result of the evolution of outsourcing services, which are gaining more and more adherents. 

Managed Services are a natural consequence of this phenomenon, offering a more advanced form of cooperation between companies. Polish entrepreneurs are increasingly willing to trust external providers of outsourcing services, reaching for increasingly sophisticated solutions of this type.

Managed Services - when to implement?

Entrepreneurs reach for MSP service solutions in virtually any situation that requires the support of the company's IT department. This model has a very broad application that can be implemented at virtually any point in a product's life. 

The perfect time to include this service in a project is during the implementation stage of a new IT system. The purpose of Managed Services is to delegate IT to care to the area of the project designated by the customer, which also involves maintaining the software in good condition - so that it is stable and functional. 

Managed Services - benefits

Each company opting for MSP service is characterized by peculiarities unique to it. This is influenced by several factors, including its industry, size, country, or international cross-section of employees.

Nonetheless, based on our experience in the field of IT outsourcing, we can highlight some advantages that are worth taking into account when considering using Managed Services. 

It all comes down to the nature of the application and your plans for its development or maintenance. Some applications - due to the nature of their functionality - require constant monitoring. For others, you may be planning to enhance them with additional functionality that will improve your business operations. 

In either case, Managed Services are a good idea that bodes well for the future. So let's address the potential advantages of this solution. What can you count on when you decide to take this step? Well:

Improved application efficiency...

... as well as the internal IT department, which can devote its attention to development issues, thereby leaving the maintenance of the technology to an internal company.

Scalability of resources

The costs associated with maintaining applications in good condition can be expensive. Managed Services is a solution that will effectively dispose of your financial resources and help you keep your finger on the pulse in an ever-changing business environment.

Maintaining business continuity

Reliability is guaranteed to generate several benefits for your business. Aside from the prominent financial aspect, your services are reflected in your customers' perception of your brand. By investing in Managed Services, you ensure the good name of your company and the continuity of the application functions you offer.

Accurate cost planning

The terms of cooperation in Managed Services so precisely defined by the provider in the SLA (Service Level Agreement). That means you pay for the service you need - without any unnecessary legal quibbles.

How to implement Managed Services? 5 questions

You may have had questions as you read this in connection with the possibility of implementing Managed Services. This may be the signal that pushes you to become more familiar with this topic - because, like any business model, it comes with certain risks and costs. 

Therefore, let's ask ourselves some questions and see if they correlate with the issues that came to mind. If they coincide with your thinking, this is an excellent signal to think about incorporating MSP services into the lifecycle of your application project.

  1. Are your company's IT support costs under control?
  2. Do you want to optimize the distribution of internal IT maintenance tasks?
  3. Is there a periodic spike in the need for IT specialists in your company's life cycle?
  4. Is the IT system you use demanding in terms of maintenance and service quality monitoring?
  5. Is it difficult to maintain and requires a specific specialist with unusual competencies?

MS Services will allow you to relieve the burden on your internal IT department. In addition, it will allow you to exercise tighter control over finances and human resources related to software implementation and maintenance. Last, but not least, you - as the customer - are also the one to identify critical parameters and, together with the service provider, construct the application suited to your needs.

Also check the cooperation model Software House body leasing & team leasing

Bet on IT outsourcing and Managed Services

Managed Services do not represent a revolution in the IT market. However, it is a kind of consequence of the popularity of outsourcing services, which have been present on the market in Western countries for years. The advantages of this solution are undoubtedly prominent enough to make Polish entrepreneurs more and more willing to reach for MSP service and derive tangible benefits from it.

It all comes down to the flexibility of Managed Services. The service is almost tailor-made and can be implemented at virtually any stage of software maintenance. It is a solution that will relieve you of the burden of application functionality and allow you to take care of innovation, development, and the smoothest possible integration of IT systems.
 

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