Benefits of Managed Services Provider MSP

COVID-19 and Beyond: Short & Long Term Benefits of Managed Services Provider (MSP)

Our company has worked with outsourced business partners for many years.  Do you know why? Working with outsourced business processors has allowed us to scale up or down efficiently dependent on the state of our business.

If you think about the current state of things, your company may have had to scale back on its employees, which is never good. In many cases it creates a hardship for the employee and certainly does not put the company in a positive light.  Not to mention, employees who remain will also be effective.

Even if the employee can come back, the trust factor may not be there, and you will likely not have the employee you had when the role was initially terminated.

My son’s company has had to manage this type of situation. As the impact of COVID-19 began to hit, they had to begin laying off some of their employees. Unfortunately, instead of following best practices, the way they handled it essentially added insult to injury, implying that the team member was not as good or as valuable for the company. My son, a documented top performer fell into this category and was let go. He expressed his frustration and disappointment but immediately began looking for a new role.  In about a week his company called him back. While he gladly went back and he still works very hard, he now works with 1 foot out the door. The energy and positive attitude he had been known for is no longer present.

But this is business…and business happens.

Believe it when people look at sites like Glassdoor.com and see negative reviews about your company there will be very well qualified employment prospects that will simply pass the company by.

An alternative to this might be outsourcing certain business processes. Or going a step further and engage with Managed Services.

According to an article on Visionet, while BPO firms tend to provide a resource or resources for a specific process, such as outsourcing tech support or bookkeeping, for example, a Managed Services firm will provide a comprehensive set of services that allows the business or department to operate at a higher level and more efficiently then a company can do itself.

Yes. This is an activity typically applied to IT.  No. It is not exclusive to IT.

Yes – the same approach can be applied to other areas of business operations.

For example, if you were to look at marketing: you need someone to build and maintain your website, someone else to do SEO and a third to do your social media posts.

You can go through the process of hiring the people individually to do the work. You will have to be responsible for making sure they are trained, and they are delivering results based on their promises and your expectations. This is going to be an expensive and inefficient process since you must hire them individually.

You can hire a BPO firm to provide you with the resources. They will cost you a lot less, but you will still need to manage and direct them on what they need to do. Essentially, you will need to know more about marketing than they do to get the results that you are looking for.  If there are activities that lie outside of their core abilities, you will have to go back to the BPO firm and get another resource.

You could hire a Managed Services firm that offers marketing services. This will be a team that will help you design a marketing program that will be best for your organization, then set it up and run it. They will have the ability to swap out resources within the established rate to ensure that the right people are doing the right jobs within the confines of the project. In this case, they will help to define the expected results and report progress toward the results.

From a short-term perspective, when change happens in the organization, to continue a company will benefit from working with a Managed Services firm for the following reasons:

1. The ability to vary your company’s expenses

Managed Services firms can work on variable contracts meaning that they only get paid for the work that they do or the time they spent working.

2. The variability of talent and capabilities

You may find that your financial management services provider suddenly needs to focus less time on bookkeeping activities due to a slowdown and participate in a planning session and provide different financial models and help with projections of different scenarios.

3. Extended Capabilities

Sometimes significant changes require that a company re-invent itself or its service offerings. A Managed Services firm can provide the company with additional capabilities that could serve to keep the company afloat during the crisis.

From a strategic perspective, a Managed Services firm also has its place:

  1. The Managed Services firm has expertise in the area that they are in and will typically get better without your firm baring the cost of additional education, certifications, product development, recruiting, etc.
  2. The Managed Services firm typically has a vested interest in the company’s success and can be instrumental in their contribution to the corporate strategy.
  3. The Managed Services firm will typically try to find ways to do things better to get better efficiencies and better results
  4. The Managed Services team will provide a higher level of integration into your firm, providing ongoing visibility, accountability and reporting, which leads to greater efficiency and bottom line: better results, according to an article in Network Consulting Group.

Having access to an MSP can be a critical component to your business operations for both the short and long range.  Your company will achieve greater efficiencies through increased capabilities, capacity and expertise while reducing departmental costs by hiring multiple resources at a single, fixed cost. Given the current virtual environment many companies are being forced to adopt, the need to maintain or increase productivity and the need to reduce costs, now is an ideal time to explore this as an option.

To learn more about Financial Management and how WistBooks Financial Management can be an asset to your business, click the link below to set up an appointment. 

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