In the business world, organizations with the latest tools and superior technologies that can stay ahead of the competition in the market. However, designing an effective IT service and keeping up with the latest trends internally is not an easy task for any organization. This is where managed IT services come into play.

What Is Managed IT Services?

Managed IT services is the process of delegating the IT operations of an organization to a third-party called Managed Service Providers (MSPs). These expert third-party organizations are responsible for handling the entire IT operations of an organization. They provide a range of services such as security, data backups, 24x7 monitoring services and on-demand support. Some organizations also require MSPs to provide them with devices such as servers, networks, desktops and other storage systems.

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Managed IT Services: An Overview

Managed IT services has become one of the most popular practices among organizations, particularly among Fortune 500 companies. The organizations can depend on the MSPs to handle their business operations and processes focusing on increasing productivity and efficiency.

The demand for managed IT services is largely driven by a number of factors such as:

  • Increased pressure for organizations to stay updated with the latest technological advancements
  • The need to meet regulatory compliance of technologies used
  • Lack of technical expertise among the internal team in the organization
  • Increase in the number of cyber attacks on organizations

One of the main advantages of managed IT services is that they can provide great insight and expertise to companies at predictable monthly costs. When organizations hire and train new internal staff, manage IT equipment, handle security or deploy systems on their own, unexpected expenses can come up as well. MSPs can help break down these costs into monthly fixed payments and reduce the huge in-house expenditures on an organization.

Types of IT Services

Managed services are primarily concerned with the outsourcing of IT services such as security, hosting, cloud computing, etc. As of 2020, the most popular IT service outsourced by companies is hosting. 

Here are some other types of IT services provides by MSPs:

Network and System Monitoring

One of the most time-consuming tasks for any organization is network and system monitoring. MSPs can take up this role through a remote monitoring and management platform. This helps organizations focus on optimizing performance and reducing losses by focusing on other important aspects of the organization. 

System Design and Upgrades

MSPs work with organizations to understand their unique requirements and fulfill their business objectives. They keep an eye on all the upcoming industry trends and changes in technology to ensure that upgrades are done routinely and the organizations stay ahead of their competition.

Security Management

Another important role of the MSPs is to protect an organization from cyber attacks. They provide regular software patching, maintenance and other security management services. 

Backup and Disaster Recovery

MSPs also ensure the integrity and safety of an organization’s data. They make sure that adequate backups are always in place, and the data can be recovered easily in the event of a disaster. 

Auditing and Compliance

Compliance causes huge stress on organizations that do not have the expertise in it. MSPs are very familiar with all the compliance standards and can help organizations decrease the risks related to their client data, payment information, documentation and other sensitive information.

Analytics and Reporting

MSPs provide regular analytics and reporting to help organizations evaluate their network performance and other KPIs. They can provide unbiased snapshots of workflows in the organization and even provide suggestions for improving them.

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With businesses facing extreme pressure due to critical changes in technology and other market forces, they are increasingly turning to managed IT services to focus on their day-to-day operations. The global market for managed IT services is expected to grow to more than $300 billion in the next few years.

With the market constantly evolving, MSPs must be aware of the latest trends to provide the best services to organizations. Here are some of the latest trends in the managed IT services market:

Emerging Technologies 

Emerging technologies like IoT and Blockchain have created more opportunities for MSPs. Organizations need to train and hire people with a deep skillset and understanding of these technologies, which can turn into unexpected costs for the organization. MSPs can help bridge this gap by providing them with substantial knowledge on these technologies.

Growth of Cyber Attacks

The increase in cyber attacks has forced companies to focus more on their security. MSPs help organizations to put security solutions in place and recover from any cyber attacks that take place. 

Increased Merger and Acquisitions

With the increase in merger and acquisitions, MSPs have been increasing in demand. Because MSPs provide a range of services for different customers under one roof, organizations can take advantage of this and outsource their large IT operations.

Cloud Services

Organizations are increasingly utilizing cloud services to build new platforms and meet digital transformation needs. MSPs can provide consumption based pricing models to different organizations and handle them accordingly.

Growth in Subscription Based Technologies

There has been a tremendous increase in subscription based technologies such as Software-as-a-Service (SaaS), Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), etc. These technologies offer organizations a number of advantages in terms of cost, scalability and security. MSPs can help organizations switch to these subscription based services easily and help manage them.

What is a Managed Service Provider (MSP)?

A managed service provider is the name given to the third party that provides services. An MSP (managed IT service provider) is typically an IT service provider that assumes and manages responsibility to provide a defined set of business technology services to its clients. It is either done proactively or as and when the MSP (not the client) assumes such services are necessary.

Benefits of Managed IT Services

Reduce IT Spending

SMBs can benefit from IT support with the aid of MSPs at a considerably lesser cost than building a comparable internal workforce. In addition, through a subscription-based model, owners of small to medium-sized businesses can pay for the services they use when they require them, enabling them to scale as necessary.

Internal planning and spending management are made simpler by outsourcing managed IT services to an MSP. Since the expenses of MSP subscription packages are typically predictable and regular, organizations can forecast their monthly, quarterly, and yearly expenditure on IT. This enables SMBs to concentrate on more crucial responsibilities like marketing and business development.

Leverage Expert Knowledge

A further advantage of managed IT is the range of experience MSPs may provide your company. These experts have an in-depth understanding of things like sensible cyber security regulations, business compliance, and practical experience.

The deep understanding of legal compliance and cyber security that MSPs possess is an asset that is priceless for risk mitigation for a customer. MSPs are always informed about the most recent information, technologies, and procedures that will keep your infrastructure operating smoothly and efficiently for an extended period of time as they are the go-to experts in charge of managed IT support of a company.

Regulatory compliance is required in various business sectors, including finance, healthcare, and education. These businesses need the knowledge and experience that a managed IT company can offer to meet the stringent requirements that control data management, storage, and overall cyber security.

Dependable Service

Your clients gain from your resources in addition to experiencing an MSP's skills. Finding qualified individuals to create an internal IT team might be difficult enough. Most business owners also overlook how IT operations are resource-sensitive.

Service reliability can be increased, and interruptions can be reduced by working with a third-party MSP. In addition, vendor-client SLAs define expectations and timelines, ensuring the dependability of both IT services and utility services (such as energy, internet, etc.).

Additionally, clients benefit from a committed IT specialist. Internal IT teams need to balance the workload of various tasks. Employing an MSP ensures that clients receive your whole attention on the well-being, upkeep, and efficiency of their IT system.

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More Definitions for Managed IT Services


An unassuming piece of software that MSPs employ to acquire data remotely on the status of machines and gadgets. MSPs can monitor systems, update programs, and address problems more quickly after they are deployed. Agents play a key role in offering customers a unified platform for monitoring and managing their whole IT estate.

Backup and Disaster Recovery (BDR)

Backup and disaster recovery (BDR) is a mix of data backup and disaster recovery solutions that cooperate to guarantee that a company's vital business operations will continue to run smoothly in the face of major catastrophes or disasters and will be quickly restored to operational status.


It is an outdated, reactive method of providing enterprises with IT services and repairs under a fee-for-service model. In essence, a client calls a break/fix specialist to ask for upgrades, maintenance or to address problems that have already happened.

Fully Managed IT Services

Services paired with a Network Operations Center to monitor systems proactively, address problems, and carry out tasks at a degree of knowledge and efficiency unmatched by competing alternatives.

Help Desk

A service that offers end users information and technical support is called a help desk. To improve the client experience, some MSPs white label their support desk services.

Information Technology (IT)

Information technology (IT) is a business solution for creating, storing, transmitting, and using data via networks, computing devices, and telecommunications.

Infrastructure-as-a-Service (IaaS)

IaaS is an MSP service available to small and medium-sized businesses. In a cloud computing context, it consists of virtualized hardware such as server space, network connections, load balancers, IP addresses, and other computer infrastructure that enables users to create their own platforms.

Internet of Things (IoT)

It is an emerging network of physical devices and objects with software, sensors, and access to the internet or private networks that can share data in accordance with guidelines provided by the Global Standards Initiative of the International Telecommunication Union.

In-House IT Managed Services

An organization that employs its own IT service providers and pays for their salaries, perks, additional training, and the network infrastructure they oversee is said to provide in-house IT managed services. Usually, this is an expensive Endeavour. Businesses that frequently attempt to obtain internal IT-managed services do not have the resources to maintain their system fully. Building a complete internal IT staff might impede an organization's control of its overall business operations and limit its capacity to expand and scale.

IT Channel

An industry-specific market where VARs, MSPs, and OEMs collaborate with hardware and software manufacturers to offer customers platforms, goods, and services.

Labor Arbitrage

It is the practice of lowering final prices by using skilled labor pools, advanced education, and untapped global workforces.

Managed IT Services

Instead of an internal IT workforce, a third-party organization completes IT duties and processes.

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Managed Service Provider (MSP)

An IT expert (or IT business) that provides managed IT services to a range of SMBs. Their main priority is meeting customers' IT demands. The distinction between a managed service provider and an MSSP must be made because they are slightly different from one another (see below). MSSPs include a cyber security component as well. Although an MSP may add fundamental cyber security to their services, their options aren't as extensive as MSSP options.

Managed Service and Security Provider (MSSP)

An IT expert (or IT business) that provides managed IT services to a range of SMBs. With the addition of cybersecurity services like firewalls, endpoint security, email filtering, and more, MSSPs provide the same IT solutions as MSPs. To tackle security lapses and other cyber security problems, MSSPs offer round-the-clock protection. 

Mobile Device Management (MDM)

Mobile device management (MDM) is a security platform used in a company to track, control, and safeguard employees' mobile devices (laptops, smartphones, tablets, etc.) that are set up across various mobile operating systems and service providers. MDM is a crucial tool for MSPs in averting social engineering attacks on their clients and the effects of human error on network security and cyber security.

Remote Monitoring and Management (RMM)

Using agent software placed on endpoint systems, remote monitoring and management (RMM) is a centralized platform that uses various services and tools to monitor, manage, and deliver solutions to servers and endpoint devices.

Service-Level Agreement (SLA)

A service-level agreement (SLA) is a contract between a vendor and a customer that details what will be delivered by the vendor and when and the metrics for gauging its success.

Small- and Medium-Sized Business (SMB)

A business or organization is typically categorized as small if it has 100 employees or fewer and medium-sized if it has 100–999 employees. SMB companies are frequently sought out as clients by IT channel partners.

Software-as-a-Service (SaaS)

On a "pay-as-you-go" subscription basis, SaaS platforms license or distribute software to a variety of consumers. This practice is sometimes referred to as "software on demand." Users access SaaS software applications using a cloud-based interface that the supplier centrally hosts.

Value-Added Reseller (VAR)

A business that transforms a product into a new one or solution by adding features or services.

What’s the Difference Between Managed It Services and Cloud Services?

Cloud services are software products that providers manage and provide on-demand to consumers. Managed IT service providers typically provide the cloud platform on which their service is delivered as part of their service, in contrast to cloud services, which typically include vendor management of application, data, and platform services but typically do not include management of the customer workload itself.

History of Managed IT Services

The emergence of application service providers (ASP), which provided remote application hosting services, in the 1990s, is when managed IT service providers first appeared. ASPs paved the way for businesses that would maintain clients' IT infrastructure remotely as opposed to on-site.

Managed IT Services Tools for MSPs

MSPs have advanced significantly since the beginning of managed IT services. These professionals now have a variety of IT skills and resources to tackle problems quickly. More clients than ever can receive "white glove" care from MSPs because of these cutting-edge and constantly improving procedures, apparatus, and software.

Other tools assist MSPs in offering managed IT services 365 days a year. As previously mentioned, RMM and BDR tools can cooperate to find and resolve problems before clients are even aware of them. Numerous issues are resolved remotely, and client data is kept safe and secure. The final result is that these solutions enable MSPs to lower client costs while delivering superior service, enabling clients to run their businesses and live their lives worry-free.

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The Managed IT Services Model

MSP services are often provided in tiers at a flat, ongoing charge. Clients receive more automation and management as specified in their service level agreements as service levels rise. Customers or end users only pay for the services they use, and they can change their service tier according to demand and business requirements.

Mastering Managed IT Services

The demand for managed IT services never goes away. The industry's foundation, background, and vocabulary must be understood to give customers the kind of service they expect. Although the market can be fiercely competitive, it is nothing to be afraid of. Finding the correct MSP vendor to partner with might be crucial.

Here’s What You Can Do Next

If you are interested in being part of an MSP and handing the entire IT infrastructure of an organization, then you can build a career as an IT Service Manager with Simplilearn’s ITIL® 4 Foundation Certification Training Course provides you with a firm understanding of the ITIL 4 framework, the latest version of the ITIL exam. This course will help you understand the core concepts, terminologies and best practices utilized in the ITIL service lifecycle.

About the Author

Nikita DuggalNikita Duggal

Nikita Duggal is a passionate digital marketer with a major in English language and literature, a word connoisseur who loves writing about raging technologies, digital marketing, and career conundrums.

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