Common Misconceptions That Businesses Have About IT Service Providers

Traditionally, companies have relied on in-house IT setups with servers, workstations, and networking gear to get things done. But keeping all that hardware and software up and running isn't cheap. Plus, employing all of the experts necessary to manage your IT in-house will skyrocket your costs — which are also often unpredictable.

However, many businesses view IT service providers as more of a bottom-line expense rather than an investment that will pay for itself. 

"Price is always a factor," says Xplifi advisor Raul Zayas. "[A lot of businesses] believe that they’re too small, feel like their business is not that complex. In reality, everyone still needs a level of IT of IT management.management."

Managed Services can actually trim down (or sometimes even get rid of) those hefty up-front expenses on hardware and systems. With resources provided and maintained in the cloud and off-site data centers, you get the support you need without the headache of managing it all yourself. 

In-house IT often ends up being one of the biggest and least predictable expenses. In fact, a 2017 Cisco study showed that Managed Service Providers (MSPs) can slash those recurring, in-house costs by 40%!

A common worry about outsourcing IT services is that companies might lose control over their IT operations. While this concern is understandable, there’s no truth to it. In reality, businesses will experience improved automation and customizations with an IT service provider.

An effective service-level agreement (SLA) acts as a vital roadmap between a business and its MSP, establishing clear expectations and responsibilities. It defines the scope of services, ensures both parties are aligned, and provides a framework for consistently measuring performance and maintaining service standards. By reinforcing the SLA, businesses can better manage expectations and ensure reliable, satisfactory IT service delivery.

Some people think teaming up with an MSP means saying goodbye to your in-house IT department. In fact, research shows that only 6% of companies who hired an MSP actually displace their in-house IT team. Plus, 15% didn’t have Dedicated staff at all — so using an MSP was their way of elevating their level of IT expertise.

Partnering with an MSP is actually a great way for your in-house team to upskill and tackle strategic projects that push your business forward. They’ll also no longer be bogged down with resolving routine and basic IT hiccups, such as troubleshooting document printing or making files and folders accessible. 

Think of MSPs as an additional support for your in-house crew, not a replacement!

Data breaches can hit organizations hard, derailing short- and long-term goals. So, it's no wonder businesses are very concerned about cybersecurity when choosing an IT setup. Letting a third-party IT service provider handle your sensitive data might seem risky at first, but in reality, they offer a range of cybersecurity services to protect their clients’ IT environments. 

Here are some key areas where MSPs demonstrate their cybersecurity expertise:

• Network Security Management

MSPs implement and maintain robust security measures to protect against cyber threats. This includes managing firewalls, intrusion detection systems, and virtual private networks (VPNs).

• Threat Detection and Response

Many MSPs provide managed detection and response (MDR) services, which involve continuous monitoring of IT systems to detect and respond to potential threats in real-time.

• Security Audits and Compliance

They conduct regular security audits to identify vulnerabilities and ensure compliance with industry standards and regulations. This helps businesses stay secure and meet legal requirements.

• Patch Management

MSPs ensure that all systems are up-to-date with the latest software versions and security patches, reducing the risk of exploitation by cybercriminals.

• Endpoint Protection

MSPs deploy and manage endpoint protection solutions, such as antivirus and anti-malware software, to safeguard devices connected to the network.

• Data Backup and Recovery

MSPs implement data backup solutions and develop disaster recovery plans to protect against data loss and ensure business continuity in case of a cyber incident.

• User Training and Awareness

MSPs often provide cybersecurity training and awareness programs to educate employees about best practices and how to recognize potential threats.

While MSPs offer a broad range of cybersecurity services, some businesses may require more specialized security expertise. In such cases, they might consider working with a Managed Security Service Provider (MSSP) focusing exclusively on cybersecurity.

Some may think that outsourcing IT is just for big companies, but MSPs primarily support small businesses. In fact, approximately 64% of small businesses in the U.S. use MSPs for their IT needs. This trend is driven by the need for specialized IT support, cost-efficiency, and enhanced cybersecurity measures.  

Additionally, larger organizations usually have the means to handle their own IT needs and complex networks. Smaller businesses, though, are often searching for cost-saving options because they are restrained by budgets, expenses, and cash flow challenges.  They benefit from outside sources because they require the same level of skills as a large enterprise but lack the financial resources to maintain those capabilities in-house. 

While managed IT services benefit all businesses regardless of size, small businesses with little to no IT expertise are likely to see the most improvement in efficiency and cost savings when partnering with MSPs.

Xplifi advisor Joe Nardone has some advice for small businesses that are new to dealing with MSPs: "Treat that relationship very similar to the relationship they build with a CPA or attorney.  You want to have a relationship with someone who understands your business, the way you operate, and the way you communicate."