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Do I Need a Managed Services Provider?

Moving a function to an MSP is a viable option for everything from payroll, manufacturing, and more to allow you to invest your resources into more profitable activities.
By D Partner Studio |
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BGSF Professional Resources

Imagine you are going about your day, and you see a new email pop up from your CEO, labeled high priority and titled “New Acquisition.” As you read through, it becomes quite clear that a new acquisition target has been identified and your team now must pivot and start the integration tasks immediately. As the Vice President of back-office systems, it is also clear that you will need to take your team, or a portion of your team, off the daily operations (keeping the lights on) and move them into this new, unexpected project. You ask yourself, “How do I balance this new work effort and still deliver quality work to my current business partners?”

The example above is incredibly common and generally results in a stressful, overworked, and disorganized work environment. So, how can you handle and manage these tasks? How can you be sure your team is adding value and continuing to move the business forward? The answer lies in one of the key questions a leader should ask, “Should my team be focusing on more strategic tasks, and should we outsource the non-business critical tasks to a Managed Services Provider (MSP) that specializes in that function?”

When should I outsource a particular function?

Moving a function to an MSP is a viable option for everything from payroll, accounting, manufacturing, and delivery to customer service, employee training, property management, and computer services. The key advantage of outsourcing is that it enables you to invest your resources into more profitable activities. Companies, however, should be careful not to outsource functions that appear negligible, but that are essential, such as customer service operations in a small business that relies on building rapport with a loyal customer base.

Ask yourself these questions when considering outsourcing:

  • Is the activity a key component to generating profits or a competitive differentiator?
  • Is the function a routine one that does not add value to the organization?
  • Is the task a need that’s only temporary or that occurs cyclically?
  • It is more cost-effective to have someone else do it than to do it in-house?
  • Can the activity be done cheaper in-house, but it employs valuable resources that could be better used elsewhere?
  • Is the skill required for this activity so specialized that it’s impractical to have a standard employee, do it?

How to partner with the company that’s right for you.

You’ve evaluated your function and have chosen to employ an MSP. How do you select the right one that will suit your company’s unique needs?

Do your homework

  • Ask peer companies for recommendations for MSP firms.
  • Ask the MSPs you are researching to give you client references, then interview these clients to find out how reliable and flexible their services are.

Select a compatible company

  • Choose an MSP that has an understanding of the function you are considering moving and ensure they can accommodate your organizational needs.
  • Ensure that the culture and values of your organization align with the MSP you are considering.

Establish the standards you expect

  • Moving a function to an MSP will mean the loss of direct control and supervision.
  • Open lines of communication between the two organizations are critical.
  • Establish a cadence of both operational and executive meetings.

Secure insurance for unforeseen emergencies

  • Make sure you have a backup system in place if the MSP is not able to meet the business requirements. There are times when a function or service being provided by your MSP is not being achieved.

Set yourself up for success

After following the steps above, you have selected your MSP and you are ready to begin the transition. However, prior to starting your engagement, there are a few things you need to consider to ensure success and seamless integration with your existing teams. The use of a transition plan is key. This plan supports the service handoff from the internal team to the MSP as well as guarantees the MSP has a solid understanding of the overall business operations.

The bottom line

The decision to bring an MSP into an organization requires a clear cost-benefit analysis. This ensures that you can measure the benefit of your MSP and continue to measure it as organizational needs change. Partnering with an MSP, you will quickly start to see and realize the benefits, especially when the next unexpected project pops up in your email! To learn more about selecting the right managed services provider, visit www.momentumsolutionz.com

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