what is managed it services

Managed IT services have evolved from traditional IT support and services and reflect the changing needs and expectations of various industries in the digital age. This shift is illustrated by the managed services market’s expected growth from USD 275.5 billion in 2023 to USD 372.6 billion by 2028, with a 6.2% CAGR, according to MarketsandMarkets.  IT support traditionally used to be a  reactive process which was availed by businesses only when needed but now this has changed into something that is delegated to experts and MSPs to take care of in terms of hardware and software installation, maintenance and troubleshooting when needed.

Managed IT services providers play an important role in maintaining the IT infrastructure of a business as they continuously monitor and optimize the IT environment according to changing demands of their clients. They fix problems before they become too severe while also ensuring optimal performance and security of the IT infrastructure.

Managed IT services also offer scalability, flexibility, and customization, as businesses can choose the services that best suit their needs and goals, and adjust them as they grow or change.Managed Service Providers (MSPs) operate with a service model where they undertake various responsibilities on behalf of their clients.

These responsibilities could include proactive monitoring, maintenance, help desk support, cybersecurity, infrastructure setup, cloud services, and more. The relationship between MSPs and their clients works with proper collaboration and trust as MSPs work closely with clients to understand their specific needs and tailor IT solutions accordingly. This allows clients to focus on their core business activities while relying on MSPs to manage their IT infrastructure effectively.

IT Management has seen some significant changes over the years as the world of IT services have shifted towards managed services, driven by the need for cost-effective, reliable, and scalable IT solutions. Transition towards managed IT services has empowered organizations to make the most out of the expertise and resources of MSPs that results in improved efficiency at work with enhanced security.

What Are Managed IT Services?

Managed IT service is a cost effective model of Traditional IT Support Service that allows businesses to outsource their IT needs to a third-party provider who has the necessary skill, resource and expertise required for the job.

9 Benefits of Managed IT Services

Managed IT services provide a comprehensive solution for organizations that want to improve operational efficiency, increase cybersecurity, and embrace scalability while lowering expenses. These services provide IT resource stability and high performance by offering skilled management of IT infrastructure and systems, resulting in considerable downtime reduction. They strengthen security measures by proactively monitoring threats and responding to incidents, protecting critical data. Managed IT solutions’ flexibility enables simple adaptability to changing needs, which is critical in dynamic company contexts. Furthermore, outsourcing IT management results in significant cost savings by reducing the requirement for large in-house IT manpower and equipment investment. Finally, managed IT services allow firms to focus on their core goals, using simplified operations and strategic IT advantages for long-term success.

1. Cost Efficiency

Managed IT services offer a compelling possibility to lower total IT spending, particularly through predictable pricing structures that allow businesses to budget appropriately and avoid unexpected costs. This financial stability is enhanced by significant cost savings achieved by eliminating the requirement for in-house IT workers and infrastructure. Companies can redirect these resources to focus on core business activities, boosting efficiency and innovation. Furthermore, managed IT service providers benefit from economies of scale and operational advantages, enabling them to deliver high-quality services at a lower cost than keeping a big internal IT team.

2. Access to Expertise

Managed IT services provides businesses with easy access to professional IT experience and a wealth of information, ensuring they stay on top of the newest technology and industry trends. Managed IT services provide firms with a larger range of talents and resources than what is generally available in-house, boosting their ability to innovate and adapt. Furthermore, proactive support and maintenance are critical components of managed IT services for maintaining operational efficiency. Managed IT services aid in the early discovery and rapid resolution of possible issues, considerably reducing interruptions.

3. Enhanced Security

Managed IT services provide businesses with advanced security measures and cutting-edge solutions meant to protect their digital assets from unwanted access and cyber-attack. Recognizing the constant nature of cyber threats, these services ensure that security measures are updated on a regular basis, protecting sensitive data and IT infrastructure from new vulnerabilities. Furthermore, when it comes to security issues or data breaches, organizations benefit from managed IT service providers’ experienced management and quick reaction skills. This not only reduces the potential damage, but it also strengthens trust between clients and stakeholders.

4. Scalability

Managed IT services enable firms to effectively adjust to changing demands and development trajectories. These services provide exceptional flexibility, allowing businesses to easily scale their IT resources up or down in response to demand changes while avoiding the limits of fixed equipment or workforce levels. Managed IT services serve as a strategic partner, ensuring that technology capabilities are fully aligned with company goals and supporting smooth transitions during times of growth or change. Businesses that use scalable IT solutions may focus on innovation and market response while knowing that their IT infrastructure will expand or decrease in perfect accord with their operational requirements.

5. Improved Compliance

Managed IT services improve businesses’ compliance as they navigate the complex web of regulatory standards and compliance regulations that govern their industries. Companies that collaborate with a managed IT service provider benefit from experienced support in ensuring conformity to these standards, thereby lowering the risk of noncompliance fines. This includes providing detailed support during audits and precise assistance with compliance reporting, both of which may be resource-intensive and complex. Furthermore, managed IT services keep organizations up to date on the newest legal and industry-specific IT needs, which is a significant benefit in an environment where rules are always evolving.

6. Increase Uptime

Managed IT services take serious steps to ensure that IT systems are operational and optimized for peak performance, reducing the likelihood of downtime. In the event of an IT problem, managed IT services enable rapid response and resolution, decreasing the length and severity of any outages. This strategy is crucial for preserving operational continuity and mitigating prolonged downtime’s potentially severe financial and reputational effects. Managed IT services let firms function more confidently by concentrating on eliminating IT disruptions, allowing them to offer consistent, high-quality services to their clients.

7. Data Management and Analytics 

Managed IT services provide organizations with the tools and skills they need to handle large amounts of data efficiently and precisely. These services offer sophisticated solutions for effectively managing and securely storing essential data, assuring its availability and integrity. Aside from storage, managed IT services leverage the power of data analytics to transform raw data into meaningful insights that may inform critical business choices. 

8. Disaster Recovery

Managed IT services include the thorough development and execution of disaster recovery methods designed to protect vital IT infrastructure and data. Managed IT services are critical in reducing the risk and impact of catastrophic disasters by assuring extensive data backup and rapid recovery capabilities. This proactive method protects critical data while simultaneously ensuring company continuity, allowing activities to continue with minimum disturbance. Managed IT services provide peace of mind by combining experienced knowledge with cutting-edge technology, protecting organizations from the potential devastation of data loss and system breakdowns.

9. Remote Working Solutions

Managed IT services ensure that teams, regardless of location, have safe and dependable access to critical IT resources, allowing for seamless operations across several locations. Managed IT services go beyond simply providing access; they also integrate and support collaboration tools and cloud-based services, allowing team members to communicate and collaborate in real-time. This comprehensive strategy not only enables organizations to sustain productivity but also increases flexibility, allowing workers to work from anywhere without compromizing security or performance.

7 Types of Managed IT Services

Managed IT service is a type of service model that allows businesses to outsource their IT operations to specialized third party providers, known as managed service providers (MSPs). Managed IT service has allowed businesses to save operating cost, human resource and the cost of infrastructure setup while being able to get the full utilisation of any particular IT service that they require. MSPs are responsible for fully managing, monitoring, and maintaining the IT infrastructure, systems, and applications for their clients. On top of that, MSPs also provide technical support and strategic guidance to help their clients take on specific challenges. There are a wide range of managed IT services that help businesses function around the world each of which serves to address a specific business need. While cloud services might be required to streamline business operations across the web, cybersecurity services help ensure that the IT infrastructure in an enterprise is safe from hackers and threats. The section below will discuss some of the most demanded IT services in 2024.

1. Network Management Services 

Network Management Services  is the management of the network infrastructure and connectivity of a business, such as routers, switches, firewalls, VPNs, and wireless access points. MSPs ensure that the network is secure, stable, and scalable while providing this service to their clients. Managed network services can help businesses save costs on network equipment, maintenance, and upgrades, as well as reduce the risk of network downtime, congestion, and security breaches. Managed network services are especially useful for businesses that have multiple locations, remote workers, or customers that require reliable and secure network access. For example, a bank, or a retail store chain can make the most out of managed network services to connect its branches and offices together in a secure way.

2. Cloud Services 

Cloud Services is the management of cloud-based resources, solutions such as Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS) and applications used by a business, such as servers, storage, virtual computers, applications, and platforms. MSPs help businesses migrate to the cloud, set up the environment, optimize their cloud usage and performance, and integrate services as required by the business. Managed cloud services can help businesses save costs on cloud infrastructure, licences, and subscriptions. This service can also improve the efficiency of the business, as MSPs ensure their clients are getting the latest services offered by the cloud platforms like artificial intelligence, machine learning, and big data analytics. Having a managed cloud service is useful for businesses that want to take advantage of cloud computing but don’t have the skills, resources, or time to manage it themselves. A healthcare provider can use managed cloud services to store and process its medical records and images on a secure cloud platform that allows access to patient data at any time.

a. Infrastructure as a Service (IaaS)

(IaaS) is a cloud service that provides organizations with virtual computing power, storage and networking solutions without them having to invest in costly hardware. This transforms how organizations use and manage computer resources by and provides enterprises with computing solutions that fit their unique operational needs. MSPs provide managed IaaS services to their customers to help them meet changing industry demands, avoiding the expenses and limits of physical infrastructure. IaaS stands out for its cost-effectiveness because of its pay-as-you-go or subscription payment model that is best suited for all kinds and sizes of business.

b. Platform as a Service (PaaS)

PaaS is a cloud service that allows developers to build, deploy, and manage applications without having to worry about the underlying hardware. PaaS offers a certain level of control to the user who needs to focus on application development and deployment rather than individual hardware or infrastructure management. This service is mostly available by software development firms that need a platform to design and test their applications for the generic user. Managed Service Providers often manage the underlying hardware, storage, computing and networking specifications for their clients while providing PaaS as a managed IT service. PaaS is also highly scalable and cost efficient as it reduces the time and resources required for application development, deployment, and management.

c. Software as a Service (SaaS)

SaaS is dedicated to delivering software applications over the internet to individuals and businesses on a subscription basis basically eliminating the need to buy hefty software, install and manage them on a local computer. SaaS applications are scalable and  allow users to access the software from any location with an internet connection. Managed Service Providers handle scalability of these software by allocating resources to accommodate varying user requirements. On top of that, SaaS is a highly cost-efficient managed IT service as it completely eliminates the need for an organization to purchase, install, and maintain software applications locally for single or long-term use. A subscription fee model is best suited to SaaS as a managed service that benefits both the client and the MSP.

3. Cyber Security Management Services 

Cyber Security Management Services in IT involve the management of security of IT assets and information of a business. Applications and hardware such as antivirus, firewall, encryption, backup, and disaster recovery solutions are some key aspects of this service. By implementing managed security services, MSPs protect businesses from various cyber threats, such as malware, ransomware, phishing attacks, and denial-of-service (DoS) attacks and also help for restoration and recovery of data in case of a breach or a disaster. This hugely helps businesses save costs on security tools, personnel, and providing them with training while reducing the risk of data loss and damage. Managed security services are useful for businesses that handle sensitive data, or operate in highly regulated industries, such as finance and healthcare. For example, a bank can use managed security services to protect its customer data and transactions from cyberattacks by implementing high level security practices, certifications and encryption services provided by the MSP.

4. IT Support Services 

IT Support Services include technical support and assistance to the IT users and staff of a business, such as troubleshooting, help desk support, and consulting. MSPs help to resolve IT issues or queries that the business may encounter on a day-to-day basis, and provide them with guidance and recommendations on best practices. Managed support services help businesses save costs and time on IT support staff, equipment, software and training. Delegating support services to third party professionals (MSPs) also increases the reliability of their IT services. Managed support services are useful for businesses that have limited or no IT staff or have minimum IT requirements. For example, a startup can avail managed support services to get IT support and advice from experienced and qualified IT professionals, without having to hire them full-time.

5. Backup As A Service

Backup As A Service provided by experienced IT service providers, are meant to shield enterprises from such adversity by implementing a thorough data security policy. These services ensure the frequent and automatic backup of critical corporate information, including documents, databases, and user data, therefore protecting against possible dangers such as hardware failures, cyberattacks, or natural disasters. These services ensure that data is not only backed up but also encrypted and protected from unauthorized access by following a meticulously scheduled backup routine, employing automated processes to reduce human error, and utilizing secure cloud storage solutions—whether offsite, cloud-based, or within data centres equipped with advanced security measures. Furthermore, they provide comprehensive data recovery solutions, allowing organizations to recover swiftly and with little operational interruption following data loss. This not only helps to sustain production and income, but also assures compliance with tough industry rules. Managed backup services, as a result, play an important part in an organization’s risk management strategy, offering peace of mind by ensuring that data is continuously backed up, securely stored, and easily recoverable, hence maintaining business continuity and data integrity.

6. Managed IP telephony services

Managed IP telephony services include the installation, maintenance, and support of Voice over Internet Protocol (VoIP) systems by third-party companies. These services have several advantages, including cost savings, scalability, and access to sophisticated features. IP telephony allows organizations to drastically cut communication costs by using existing internet connections for voice conversations, removing the need for traditional phone lines and related fees. Furthermore, IP telephony solutions are extremely scalable, allowing organizations to simply add or remove users and capabilities as their requirements change, without needing substantial infrastructure modifications. Managed IP phone services also involve continuous maintenance and support, ensuring that the VoIP system runs smoothly, is safe, and receives regular upgrades to gain access to new features and advancements. This holistic strategy allows firms to concentrate on their core operations while benefiting from reliable, cost-effective, and feature-rich communication solutions.

7. Customized Services Based on Business Needs

Customizing services based on specific business needs is a challenge faced by many MSPs. This includes designing solutions to each company’s particular difficulties and objectives based on their industry requirements. In highly regulated areas like banking or healthcare, tailored communication services may feature secure messaging systems that must maintain  data protection requirements such as HIPAA or GDPR. Some services might require secure networking infrastructure that ensures protection from in-bound and out-bound threats. Providing customized and managed IT services guarantees maximum efficiency, compliance, and performance on the client end that help both the MSP and the client reach their business goals.

Why Businesses Choose Managed IT Services Over Traditional IT Services

Businesses in today’s world are turning to Managed IT Services to gain access to several pieces of technology under specialized operation without having to worry about financial restrictions and budgeting. Companies that collaborate with managed service providers get access to a wide range of IT expertise, allowing them to receive top-notch technology support and consulting services without having to establish an in-house IT department. This approach streamlines operations by proactive monitoring and control of IT infrastructure. On top of that, handling of IT tasks by experts also results in reduced downtime and improved system performance in the enterprise. Cost-effectiveness and sense of security provided by Managed IT Services is a crucial advantage, allowing firms to make the decision to avail managed IT services instead of forming a team dedicated for that IT role.

Cost savings and budget predictability

Managed IT Services significantly reduce total IT expenditures for organizations by streamlining operations and utilizing economies of scale, coupled with offering budget predictability through fixed monthly fee structures. Outsourcing IT operations to managed service providers allows businesses to benefit from the expertise and efficiency of specialized teams who employ best practices and advanced technology to enhance IT infrastructure performance, thereby minimizing downtime and boosting productivity. This approach not only facilitates cost savings through large-scale operational efficiencies but also ensures high-quality services at lower costs, benefits that are directly passed on to clients. The fixed monthly pricing model further adds financial certainty, transforming unpredictable IT expenses into predictable monthly investments, crucial for accurate financial planning and budget allocation.

Enhanced reliability and service quality

Managed IT Services improve the dependability and quality of IT support for organizations by reducing downtime and increasing system resilience via the use of innovative technology and qualified people. These suppliers use cutting-edge monitoring technologies and management approaches to proactively discover and handle issues, resulting in ongoing operational efficiency. The implementation of cutting-edge technologies, together with the deep technical expertise of IT professionals, allows for continuous improvement of IT infrastructure, ensuring excellent service quality and system dependability.

Impact on Business Operations

Managed IT Services play an important role in driving smoother and more efficient corporate operations by guaranteeing the stability and efficacy of IT systems, allowing organizations to quickly respond to market changes and technological improvements. These services reduce downtime and improve system performance by offering professional management and proactive maintenance of IT infrastructure, allowing for seamless everyday operations and increasing overall productivity. This strong IT foundation enables firms to stay nimble, responding rapidly to emerging market possibilities and adopting cutting-edge technology without affecting core operations.

Innovation and growth via a stable and dynamic IT infrastructure

Outsourcing IT tasks to Managed IT Services allows organizations to focus on their core capabilities and strategic goals, enabling innovation and growth through a stable and dynamic IT infrastructure. This strategic move not only enables businesses to benefit from the experience of IT professionals, but it also frees up internal resources and personnel to focus on revenue-generating activities and important business operations. organizations can improve operational efficiencies, lower overheads, and reduce distractions by delegating complex and time-consuming IT management tasks to dedicated professionals.

Improving IT service delivery efficiency

Managed IT Services improve the effectiveness of IT service delivery by simplifying processes for faster issue response and more effective resource management. These services optimize IT operations by using best practices and cutting-edge technology, resulting in decreased downtime and increased system performance for enterprises. The use of sophisticated technologies, such as automated monitoring and predictive analytics, enables Managed IT Service providers to anticipate possible issues and fix them before they disrupt company operations. This proactive approach to IT management not only speeds up the resolution process but also improves the allocation and usage of IT resources, ensuring that systems and networks operate at optimal efficiency.

Communications Services

Managed IT Services provide experience in the maintenance and optimization of communication networks, ensuring that organizations have smooth connections and strong collaboration capabilities. These services, which manage the integration and performance of VoIP, email services, and numerous communication platforms, play an important role in supporting efficient and successful internal and external interactions. The strategic management of these technologies enables continuous voice and data transfer, improving the dependability of communication channels critical to company operations. Furthermore, optimizing these services means that firms can take use of the entire range of capabilities provided by sophisticated communication technologies, such as video conferencing and instant messaging, hence increasing team cooperation and productivity.

Managed Print Services

Managed Print Services (MPS) provide a systematic approach to managing printing machines and related operations, resulting in considerable cost reductions, efficiency gains, and environmental benefits. MPS providers help organizations decrease waste and control printing expenses by optimizing the print environment and implementing optimized print management processes. This involves proactive printer maintenance, targeted deployment of printing equipment based on actual business requirements, and the establishment of rules that encourage responsible print behavior among workers.

Compliance and Risk Management

Managed IT Services can help firms fulfil regulatory standards and manage IT risks, with an emphasis on cybersecurity, data protection, and disaster recovery. These services assist businesses in complying with legislation such as GDPR and HIPAA by installing robust security measures to secure sensitive data while ensuring that data handling methods adhere to privacy standards set by regulating authorities. Managed IT also prepares firms for unexpected disasters by implementing disaster recovery plans to reduce downtime and safeguard against data loss.

Data Analytics and Business Intelligence

Managed IT Services provide firms with data analytics and business intelligence capabilities, allowing them to gather, analyze, and understand large volumes of business data. This complete approach allows for informed decision-making and strategic insights that promote corporate development and operational efficiency. Companies may use data to find previously unknown patterns, trends, and opportunities, allowing them to make data-driven choices that provide them a competitive advantage.

Infrastructure Upgrades and Migrations

Managed IT Services ease the process of upgrading and migrating IT infrastructure, enabling a smooth transition with little disruption to business operations. These services professionally handle the transition to new IT solutions, such as cloud services, virtualization, and other cutting-edge technology, resulting in seamless integration that improves company agility and scalability. Managed IT Services reduce the risks of data loss and system downtime by supervising the whole upgrade and migration process, allowing organizations to operate and offer services continuously. This comprehensive strategy modernizes IT infrastructures while simultaneously optimizing performance and resource consumption, allowing businesses to stay competitive in the digital era.

Unified Communications Services

Unified Communications Services transform the way organizations interact and cooperate by combining many communication methods (e.g., email, instant messaging, voice conversations, video conferencing, and file sharing) into a single, integrated platform. Managed IT Services play an important role in orchestrating this integration by ensuring that all solutions function seamlessly together, improving team collaboration, and increasing overall efficiency. These systems provide a centralized communication centre, allowing employees to simply transition between multiple channels of communication and cooperate more efficiently, regardless of their location.

The Relationship Between Managed IT Services and Cloud Computing

Managed IT Services and Cloud Computing go hand-in-hand in the IT industry today but they have their own differences and similarities. While Managed IT Services could provide a wide range of services to their clients including hardware and software setup, support, infrastructure maintenance and security, Cloud Computing is the delivery of services over the internet, including Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). They are similar in a sense that both these services can be performed remotely and are managed by a 3rd party who provides similar services to multiple clients at one time. Managed IT Services complement cloud services by providing expertise in managing and optimizing cloud-based infrastructure and applications.

Cloud services offer scalability, flexibility, and cost-efficiency and managed service providers (MSPs) ensure that businesses effectively leverage these benefits by offering services such as cloud migration, monitoring and optimization. IT Services are now adapting to cloud infrastructure that helps them reach the client in a more efficient and streamlined way.  Managed service providers are now experts in helping a client choose the best cloud service models (IaaS, PaaS, SaaS) and providers for their specific requirement. They also design and implement cloud architectures, manage cloud resources and ensure security and compliance in the cloud.  MSPs now act as strategic partners for businesses, helping them get started with cloud deployment and providing real-time assistance.

Service-Level Agreements (SLAs)

What is an SLA?

Service-Level Agreement (SLA) is a document between service provider and client that outlines commitments, quality, availability, responsibilities complexities, troubleshooting and KPIs for tracking performance.

SLAs cover scope of services, performance metrics, response times, and troubleshooting  in case of service disruptions or failures. SLA ensures both transparency and accountability between both parties and also makes sure their goals are aligned in delivering  high-quality IT services. There are several key components and metrics involved in an SLA some of which are:

  • Service Scope: The Service Scope of a Service-Level Agreement (SLA) is an essential component of Managed IT Services, detailing the full spectrum of assistance provided, including system, application, device, and infrastructure management. A well-defined Service Scope not only prevents scope creep and aligns expectations, but it also allows for precise planning, budgeting, and scalable solutions that support company development.
  • Performance Metrics: Service-Level Agreements define several key performance indicators (KPIs) such as uptime, availability, reaction times, resolution times, and system dependability, providing a blueprint for high-quality IT service delivery. These quantitative indicators establish clear, measurable goals for service providers, assuring responsibility and consistency in service quality.
  • Response and Resolution Times: SLA details all the conditions for response and resolution timelines, establishing clear expectations for how quickly service providers will notice and resolve service requests and issues. This record helps ensure that the most significant issues receive quick treatment. Prioritized response standards also help SLAs strengthen the dependability and performance of IT services, developing a strong and trusting relationship between businesses and their IT service providers.

There are more metrics involved in an SLA that make it such an efficient and powerful piece of documentation in IT. SLAs include headings like Service Credits and Penalties, Escalation Procedures highlighting a  systematic process for addressing unsolved issues, and various reporting mechanisms.

Managed IT Services Costing

Managed IT Services Costing adapts to various business requirements through diverse pricing models, including a fixed monthly fee for comprehensive access or a user-based fee calculated on the employee count utilizing the services. The complexity of a client’s IT setup and the service level chosen, ranging from basic support to all-encompassing 24/7 monitoring and proactive maintenance, significantly influence pricing. The complexity of the IT environment, including software diversity and integration levels, is also pivotal in determining costs. While precise pricing without a detailed business assessment is challenging, costs can range from about $99 per user per month for standard services to $350 per user per hour for specialized tasks, i.e. Managed IT Services costs from $99 to $350 or £78 to £275 in Approx. The industry has seen a shift towards scalable Per-Device and user-centric Per-User pricing models, with an emerging preference for All-Inclusive pricing for predictability. This move towards flat fee models over hourly billing aims to enhance service efficiency, predictability in costs, and foster a proactive IT management culture, benefiting both service providers and clients.