5 Advantages of engaging a managed service provider (MSP)

Updated On : August 2021

According to a market analysis by Statista, the global managed services market will be worth US$296 billion by 2023.

With businesses using technology to maximize efficiency, management and maintenance are of primary focus. It makes perfect sense, especially for the financial sector, to outsource the maintenance and repairs to experts. A managed service provider (MSP) takes care of all functions of IT infrastructure management from network administration to data backup and staffing. With constant remote system monitoring and real-time alerts, managed services help to prevent failures and fix problems directly.

Today, more and more organizations are realizing the benefits of engaging experts and opting to hire an MSP to meet the high demand for superior performance, fast-moving and stable business technology. MSPs have emerged as game changers for many organizations bringing significant benefits to businesses.

Five advantages of engaging an MSP for FMS:

1. Saves time, resources, and cost

Hiring an MSP cuts down costs by providing predictable monthly costs to cover the entire service and brings in significant cost efficiencies. Outsourcing the contingent workforce management, HR teams have more time due to reduced workloads and find it easier to focus their time and skills on activities that could bring more value to the business.

Networks have a lot of types of equipment that need maintenance, repair, or replacement. MSPs provide it all as part of the contract at a fixed cost thereby shielding an organization’s budget from fluctuations. Banks especially gets benefit from MSPs as the initial cost of setting up IT infrastructure is lower, with savings on the cost of hiring and training a team as well as investing in servers and other equipment.

The predictable pricing model, reduced third-party recruitment fees, outcome-based pricing, and a strategic staffing approach are the benefits that MSPs are bringing to banks adapting to a competitive new world.

2. Access to the proven experts & global reach

An MSP can provide access to specialized services with highly qualified personnel without recruiting them. Whether it’s a new skill required for a one-time project or a specialized service, an MSP can provide a team of experts with precise skills and extensive IT experience.

For large financial institutions, expanding into new territories, access to talent worldwide can pose to be an issue. MSPs operating globally can attract, onboard, and retain the best staff across multiple domains. As experts, they help to save time, money, and potential legal damages by ensuring that local laws and cultural norms are complied with, which can be a struggle for even the most developed businesses.

3. Access to new technology & ready infrastructure

Implementing technology is one of the biggest costs for an organization, and one of the major benefits of using managed services is constant access to the latest technology without making huge investments for upgrades.

DevOps skills that are used to configure and manage cloud infrastructure can be time-consuming for in-house developers to build from scratch, but MSPs have libraries of infrastructure as code, which can be tuned a bit to fit any client’s requirements. This allows MSPs to deploy solutions quickly saving time and money.

With specialized and dedicated service, MSPs can offer quick and timely responses to tackle any performance drop or failure in the system.

4. Narrowed business focus

An MSP can help reduce stress for the business heads and leave them free to focus on pursuits more crucial to the business. If the internal team has to help users fix basic issues or deal with equipment malfunctions, it leaves them little time to work on projects that catapult the business ahead. When the IT infrastructure issues are handled by experts, the IT team can work on the business core competencies and strategies. It allows banks to focus on growth, stability, and innovation while benefitting from the advice of a highly resilient team.

Managed services take the pressure of daily processes away by redesigning workflows, upgrading equipment, and automating a lot of tasks. It enhances an organisation’s data analysis capabilities and ensures that the workforce is fully optimized.

5. Data compliance

A financial institution’s data is subject to a litany of regulations that keep information secure. It is essential to know the huge number of current standards and regulations and the specific ones that apply. It is also important to make sure that applicable rules are strictly followed as violating any rules or standards bring in hefty fines and reputation damages.

An MSP takes care of all the complexities of compliance & auditing and can run reports and conduct audits to prove that all requirements are being met by the organization.

With financial institutions experiencing uncertainty globally, driving consistent business growth is a challenge. Businesses are increasingly looking at MSPs to provide a dynamic, flexible contingent workforce to adapt to changing needs. MSPs are proving to be a decisive factor in digital transformation providing the knowledge, technology, and industry expertise to make sure the business succeeds. Nelito also offers a comprehensive suite of IT Infrastructure Services to banks and financial institutions.

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