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.

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.

Are you looking forward to becoming an ITIL expert? Check out the ITIL Foundation Certification Course and get certified.

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 (ITSM). 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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  • *According to Simplilearn survey conducted and subject to terms & conditions with Ernst & Young LLP (EY) as Process Advisors