Efficiency is one of the most challenging objectives for most companies to achieve. To be efficient, a firm needs to focus on optimizing limited resources to achieve the best results possible at the lowest cost. As you probably know from experience, this is far easier said than done.
To boost efficiency, a company needs to craft a strategic plan. In many cases, this strategic plan involves outsourcing. The term outsourcing refers to the business practice where a company contracts the services of an individual or another company to perform specific tasks, provide services, or handle operations that would otherwise be performed internally by employees. Outsourcing solutions are incredibly popular among companies these days. When utilized correctly, outsourcing solutions allow firms to operate at a higher level of efficiency.
Companies of all sizes are recognizing the cost- and time-saving advantages of contracting with independent service providers to provide services that don’t fall within the realm of their primary expertise. Small and mid-sized companies are turning to outsource solutions for remote IT support and management services as well as IT hardware maintenance.
This partnership between client organizations and managed IT service providers allows the client organizations to enjoy efficiency, productivity, lowered costs when it comes to IT operations. Best of all, the organization’s IT systems continue to run at the highest level of efficiency possible. This frees up valuable time and resources within the client organization, which are then directed to serving the needs of customers.
One primary reason so many small and medium-sized companies are turning to outsourcing is that they are finding themselves pressured to deploy the same level of technology functionality as larger companies merely to keep up with the competition. As you can imagine, it is often difficult for small IT teams to keep up with this pressure. This also causes small budgets to become strained. While some organizations may initially be hesitant to turn to a third-party for infrastructure support, these organizations can benefit significantly from such a move. These benefits come in the form of reduced costs and boosted revenue and efficiency.
1. Focus on their Core Mission
One way that managed IT services increases labor efficiencies is by allowing companies to focus on their core mission. Organizations that spend most of their time and resources on their core expertise can pay more attention to boosting sales, building a strong brand, and increasing revenue. Your employees can focus on providing the best customer experience possible to your clients. The third-party company that you are in a partnership with can concentrate on keeping your organization’s IT systems in tip-top shape. Most managed IT service providers are flexible enough to increase their services when business volume rises and then decrease their services when business slows down.
2. Reduce HeadCount and Overhead
After you form a relationship with a provider of managed IT services, you should focus on reducing headcount and overhead. Now that you have a third-party that provide some or even all of your IT needs, it is likely that you will be able to reduce overhead costs and headcount significantly. Your provider of managed IT services will serve as an extension of the internal team within your company. Your company will benefit significantly from the expertise and resources of the managed services team. Economies of scale are one significant advantage of managed services. Managed IT Service companies provide high volumes of manpower and technology, which implies that they have the means to significantly reduce the cost of both factors.
3. Economies of Scale and Pass-Along Savings
One way your organization will enjoy increased labor efficiencies with managed IT services is through pass-along savings and economies of scale. Managed IT services provide client organizations with access to world-class assets at a fraction of how much it would cost to acquire these assets on their own. Managed IT service companies also pass on cost savings to their client organizations.
4. Consider Data Safety and Confidentiality
When choosing a managed IT services partner, one of the main factors that you should consider is their knowledge of reporting requirements that are industry-specific. Some examples of such reporting requirements include SOX, PCI/DSS, and HIPPA. You should also take into consideration their knowledge of personal clearances like DOD and technology partner certifications. If you don’t take these factors into account, it may end up hurting your organization’s labor efficiency. While you shouldn’t thrust the responsibility of data safety and confidentiality entirely on a managed IT services partner, working with a managed IT services company that takes data security and privacy into consideration will help labor efficiency. Some of the pressure that your IT team currently faces when it comes to keeping data secure and confidential will be alleviated.
For more information about how to increase your company’s labor efficiencies with managed IT services, don’t hesitate to contact us.