These days, more and more businesses are switching over to Managed IT Services. According to a Clutch survey, about 59 percent of IT services have transitioned from a break-fix model to a managed service contract. 

Switching over to a Managed Service Provider (MSP) for your IT needs has numerous benefits for your business, including cost effectiveness. But how exactly does it save you money? We’ve broken it down into a few key points. Here’s how hiring an MSP can benefit your bottom line: 

MSP vs. Break-fix 

When discussing how an MSP can work for you, you must first understand what isn’t working. Historically, businesses have hired IT service providers only after an issue arises. In this model, the service provider comes into the situation reactively rather than preventing it proactively

After the issue is resolved, the IT technician departs and remains inactive until the next problem occurs. This cycle, in which IT services are only called in when there is a problem, is called the “break-fix” model. The break-fix model is quickly becoming outdated as the MSP model gains popularity. 

In the MSP model, a business hires an IT managed service company to work with them continuously, not just when something goes wrong. An MSP handles every aspect of a business’ IT infrastructure, including network management and deployment, cloud solutions, cabling and wiring, data room management, software updates, backup and more. 

The MSP generates reporting on all of these different elements and provides it to the business, usually on a monthly basis. The MSP is also usually available 24/7 to respond to any issues or queries the business might have. 

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Flat Rate vs. Hourly Rate 

When an IT professional is called in under the break-fix model, you can never be sure how much the repair will end up costing you. IT specialists will likely charge by the hour, and even for consultation or per repair. This results in varied and unpredictable costs added to your monthly budget. 

An MSP will charge you a flat monthly rate for their services. In this model, you know exactly how much IT support will cost you and can factor that into your monthly budget. If an IT-related issue comes up, it will not cost you any extra money to have it fixed quickly and efficiently. 

Security Threats and Malware 

The cost of cybercrime-related damage is expected to hit 6 trillion dollars by 2021, according to Cybersecurity Ventures. IBM data puts the average cost of a security breach at 3.92 million dollars for impacted businesses. Experts predict that all kinds of cybercrime, from phishing to ransomware, will only continue to rise in 2020

However, with trained professionals monitoring your IT environment, security breaches can be prevented. An MSP will deploy “hardening” techniques such as firewalls, anti-virus software, DNS filtering and more to keep your data secure. The detailed reporting provided by the MSP gives you a full picture of your digital infrastructure, so you can be sure that your vital information is safe from threat actors. 

Hiring an MSP also helps to prevent an employee-induced security breach. It is estimated that around 24% of all security breaches are caused by human error. An MSP can set up security measures, such as multi-factor authentication, so that your employees do not put your business at risk. An MSP can also help by providing security training resources to your employees. 

With a trustworthy MSP by your side, a bit of prevention can save you countless dollars in the long run.

Downtime Costs 

If the worst case scenario occurs and your business is impacted by a security threat, an MSP can reduce costly downtime. “Downtime” refers to the period of time in which you are unable to operate as usual or operate at all. According to Gartner data, the average cost of IT downtime to businesses is 56 thousand dollars per minute. Hiring an MSP can prevent your business from becoming another statistic. 

A key way in which an MSP can reduce downtime is through backup services. A good MSP will configure, monitor, and maintain a quality backup system to ensure the safety of your data. 

Should a breach occur, your MSP will immediately disconnect your devices from the affected network. The service provider can then clean the entire digital environment and restore your information quickly from the existing backup. This keeps your downtime to a minimum, saving you money in the process. 

Additionally, if you are the victim of a ransomware attack, a properly configured backup relieves you of the need to pay the threat actors. If you have everything securely backed up, the hackers no longer hold the power. 

An MSP is your best ally in the fight against security threats and expensive downtime. 

MSP vs. Internal IT Department 

Hiring an MSP is also more cost effective than maintaining an internal IT department. An MSP relieves the financial burden of procuring, configuring, and maintaining a complex IT environment. The MSP assumes the cost (and risk) of obtaining and monitoring an IT infrastructure. 

Using the services of an MSP also saves you the cost of employing an IT team yourself. This includes everything from salary to benefits, adding up to hundreds of thousands of dollars per year. When you hire an MSP, these costs are replaced by a flat monthly rate. 

The MSP Solution 

From preventing crises to mitigating downtime, an MSP is the most cost-effective IT solution for your business. If you’re looking to save time and money with managed IT services, click here to get a free quote.