What is an MSP?
An outsourced MSP or a managed service provider is an independent contractor who works with the provider to provide IT services to their customers. There are benefits and drawbacks to outsourced providers. To find out more about the benefits and disadvantages of outsourced MSPs, read on.
How MSPs Affect Your Finances
In a nutshell, outsourced MSPs save companies money. They are not housed in the company building but on other premises, allowing for flexibility. Employees can take their work home on their laptops and become virtual. This means they can work from home without the hassle of making excuses about going home early to get ready for work.
Outsourcing is also a cost-effective option as the providers are not required to buy office equipment or pay salaries. On the other hand, the outsourced IT staff members may not be the same as the company’s staff. Outsourcing also enables companies to manage time and location of employees, which helps them work around the clock.
However, there are a few disadvantages of an outsourced MSP. Let us take a look at them.
The first disadvantage is that the private firm is not required to comply with all the rules and regulations that govern a company. Also, the security and other information may be shared by the clients with the provider. Furthermore, the client has limited control over its business processes. Another disadvantage is that IT resources may not be trained and other services may not be acquired from the company if there is a discrepancy between the agreements.
Security risks are also present when there is a third party providing services. Hackers can gain access to personal information. Also, some of the services may not be in compliance with privacy and data protection laws. Any personal information such as credit card numbers can be stolen by hackers and used for fraudulent purposes. A hacker can also make unauthorized change of software and set it up to transmit your credit card information to another website.
The main disadvantage is the limited control that the company has over the service provider. If there is a problem with the outsourced service provider, the company is not in a position to resolve the situation and rectify the problem.
A second disadvantage is that the company may be unable to provide the IT support and other services when the IT support contract with the outsourced MSP expires. If the outsourced provider shuts down the organization, the client is left with no choice but to shift to a new provider. In this case, the customer is on his own without the backup service provided by the company.
Finally, there is the risk of hiring an inexperienced contractor, which may result in long-term costs. This may cause additional costs later on. It is also hard to pinpoint the fault of the contractor when there is no evidence of previous working experience. Lastly, the client may not be aware of the problems that the contract has created and cannot do anything to resolve the problem.
There are advantages as well. With an outsourced MSP, the company can easily control the day-to-day operations of the company. It is also easier to contract to an MSP, especially when there is a need for maintenance and upgrades, or when there is a need for access to advanced technologies.
Another advantage is that the private firm can have remote access to the servers, which makes the client’s IT resources more efficient. Also, there is no need to pay for employees’ salaries or for benefits.
Also, hiring an outsourced MSP is a good option when there is a major change in the service that needs to be provided. This is because the company does not have to pay for these additional requirements and there are no more requirements that are not required. The advantages of outsourced MSP are many and the disadvantages may seem too harsh at first.