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Business planning, Managed service

Is a managed service right for you?

Is a managed service right for you? Featured Image

Is a managed service right for you?

Let’s face it, managed services are now the norm for vendors and IT enterprises. You hear about it at business conferences, on LinkedIn, and especially from your clients. But why? What is so fantastic about this practice that’s made its way into our business lexicon?

Looking at vendor-enterprise relationships, managed services clearly provide several benefits, but when used in the wrong setting managed services might make things more difficult for both the client and the Managed Service Provider (MSP).

When business and managed services don’t mix

Plain and simple: managed services aren’t for every business. In fact, there are several components that can make it difficult for an MSP team to be successful and add value for their client. At The Spur Group, we’ve identified five key issues within a business that can make it difficult to successfully utilize a managed service:

  1. Lack of business innovation: Your team needs to deliver strategy
  2. Rigid vendor management: Let the MSP take care of their business. It’s your job to ask for services, it’s the MSPs job to provide.  
  3. Little or no process documentation: Without documentation in place a managed service will take an extra month to get running
  4. Need for significant oversight and direction: If the daily work requires your team to be involved, this can complicate the MSPs ability to efficiently deliver
  5. Inability to lead: Your team needs to be able to give clear and timely guidance for an MSP to be successful

If your business has 3 or 4 of these issues, a managed service is going to take a little more effort to get functioning smoothly.

Keys to successful managed services

If you think your business is ready, managed services offer an opportunity to give your team back some precious time. Too often, managers are stuck between a rock and a hard place. They have to sacrifice their team’s strategic power to managing processes instead of coming up with the next great thing. Giving process oriented tasks to a vendor allows a manager to focus their team on the strategic work that drives your business forward.

  • Improve operational efficiency: Using vendors in a managed service capacity helps reduce redundancies by coordinating between organizations and encouraging cross-team collaboration. This prevents unnecessary work from being done, creating higher quality products.
  • Offload significant work efforts: the client is able to hand off necessary rinse and repeat processes that don’t require business expertise
  • Extend team strategic capacity: with previous burdens lifted, the client’s team is now able to solve larger strategic issues
  • Gain access to additional expertise: managed service teams can often bring years of additional experience to the table that can greatly increase the product quality
  • Leverage outside core competencies: if you select your vendor company with an eye for their expertise you might be able to get a lot more for your money. For example, The Spur Group is a world renowned Channel Management company and hiring us can come with world class strategic thinking around creating and running various aspects of partner programs.

Over the course of the next few weeks we discuss ways to successfully identify if a managed service is right for you, how to choose the right provider, run a managed service, how to measure the success of your engagement, and how to make sure your getting value for your team.

Interested in learning more about managed services? Contact one of the experts at info@thespurgroup.com to learn how utilize a managed service on your team.

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