There’s no denying the numerous benefits of Managed IT support, so why do some businesses remain on the fence about outsourcing? A lack of understanding the ROI.
Many businesses overlook how easily technology can impact revenue and, in comparison to technology, downtime is expensive. Establishing reliable and effective systems will allow your team to maximize production and revenue. We recommend most businesses set aside 2% of their anticipated gross revenue for “technology” each year. This should be sufficient to cover Internet, Software, Security, PCs, Servers, Printers, Cell Phones, Toner, Support, Surveillance, etc. If your business is heavily dependent on technology, you should consider increasing the amount by 1-2%.
Today, we’ll define, in practical terms, how securing Managed IT support can deliver more ROI and result in an increase in overall revenue.
1. Reduces the Likelihood of Business Interruption
Digital adoption and transformation is critical to business development. Organizations in all industries need to utilize technological advances to stay competitive and survive. When critical systems are offline, revenue is generally impacted.
How much does downtime cost you? If a user loses 1-minute per hour per day to bugs or equipment performance, it adds up to 34.4 hours each year. If employees charge out at $100 per hour, the revenue impact is $3,440.00 per year for each employee. Your revenue model may differ, but ultimately outages or performance issues will cost you.
Here are several ways Managed IT support can reduce the likelihood of it happening:
- 24/7 monitoring (identify issues before they impact the team)
- Preventative maintenance (latest security and stability updates)
- Strategic Redundancies (fault-tolerant highly-available designs to protect critical systems and keep them online)
- DR (Disaster Recovery) planning (major incident plan to keep impact low)
- Asset management & evergreening (proactively replacing equipment and software to achieve maximum reliability and performance)
- Proactive & On-Going Security (reducing the likelihood of events such as ransomware)
2. Defends against Cyber-Crime
Malware, ransomware, and phishing attacks are powerful and have proven very effective at directly or indirectly impacting businesses. For example, the recent brute-force and phishing attacks on Coast Capital Savings resulted in a several hundred thousand dollar loss and has members questioning the financial institution’s practices.
What many Canadian businesses still don’t realize is they are now required to report data breaches that involve personal information to the government and the incident details are made public. The PR backlash from a cyber incident can have long-term impacts on revenue and growth.
If you care about your business, you must take cyber-security seriously. Below are several key ways Managed IT support can help strengthen your systems and reduce the risk:
- Monitored anti-virus, anti-malware, and anti-ransomware protection systems
- Real-time web-filtering and application control
- Real-time intrusion prevention and advanced threat protection systems
- Real-time disk encryption management
- Managed Windows and 3rd party software updates (Mozilla, Chrome, Flash, Java, etc.)
- Regular audits and assessments
- Vetting 3rd party software before purchase or implementation
3. MSP SaaS (Software-as-a-Service) Subscriptions Can Increase Company Productivity
MSPs can help your business source and use online tools designed to improve productivity. SaaS subscriptions are generally month-to-month, require very little (or no) upfront cost, and offer access to enterprise features. There are many factors to consider when choosing online software, a MSP can help you select and implement an appropriate solution that offers a solid ROI.
Some of the more popular platforms include:
- Microsoft Office 365
- Google G Suite
- Amazon Web Services
4. Better Annual Budgeting of Your IT Systems
IT budgeting and spending mistakes can have a direct impact on your bottom line. In fact, poorly managed IT budgets are typically responsible for misconceptions about IT investment and ROI. In our recent article about common IT budgeting blunders, we named the following:
- Migrating to the cloud without a defined plan
- Not automating redundant IT tasks
- Maintaining instead of innovating
- Excessive spending on enterprise systems when you’re an SMB
We recommend reading the complete article on common IT budgeting mistakes here.
5. Managed IT Support Can Strengthen Your Internal IT Team
Leveraging a MSP can be used to complement and strengthen your existing team by extending its skill-set, offering internal techs access to enterprise tools and systems that are typically too expensive, keeping everyone accountable, providing additional personpower for major projects, and introducing added layers of protection against personnel turnover.
We hope this article has provided clarity on how Managed IT support can help you reach your revenue goals for the years to come. Of course, as with any investment you likely have questions, as one of Western Canada’s leading MSPs we have answers and can propose the RIGHT solution for your unique needs. Contact SIRKit today.