Following from our last blog, Functional Sourcing – The Game Changer in IT Managed Services, this article will showcase the benefits that service providers can gain by adding functional sourcing to their service portfolio.
With the increasing maturity of the managed services provider market, enterprises are realizing the benefit of partnering with efficient service providers to maximize their business and IT investments. This is especially true for service providers offering functional managed services.
At the very basic level, IT managed service providers offer business optimization services and a way to run IT operations at scale without investing in a full, in-house IT department and infrastructure. Taking this one step further, many service providers today, are enhancing their value proposition by offering functional sourcing services in addition to the existing diverse portfolio of managed IT operations transformation and optimization services.
Leverage the untapped potential of managed functional sourcing
The changing technology landscape is the catalyst for IT operations automation, and it enables enterprises to innovate dynamically and stay in the race. Some of the technological changes that act as a thrust to this automation are:
As a relatively new entrant on the managed services market, functional sourcing, as a service, has immense untapped potential. In a world struggling with digital disruptions, service providers will have no shortage of clients who need help managing their IT disruptions, while they focus on achieving business goals. These clients look for enterprise-level IT support and domain expertise but on a budget. According to a report by Contigo Technology, “Managed Service Providers help reduce the overall IT support costs by as much as 30% to 50%.”
By offering an optimized combination of both efficiency and cost through managed functional sourcing, service providers can assure their clients stress-free, 24/7 management, maintenance and monitoring of IT operations including storage systems, networking devices, servers, cloud applications and security systems.
Up your value proposition by offering functional managed services
Service providers who are no stranger to the “break-fix” model in IT Operations – when something stops working, an expert is called to fix it – must realize that the world has moved from reactive fire-fighting to proactive solutioning. Businesses today are fast-paced and any fixes and downtimes created by operational issues can cause massive losses.
With every new technology an organization adopts, it is looking for seamless IT support experience. With their own IT departments involved in managing projects higher up the value chain, enterprises are looking outside for the expertise and resources needed to make life easier. This is a window of opportunity for service providers who can up their value proposition and score some brownie points by offering functional managed sourcing services and elaborating on its benefits such as:
1. Focused Expertise: Most enterprises would like to adopt the latest innovations but there is undue pressure on them due to continually evolving productivity, IT operations and technology demands. They are now fighting back by actively engaging the help of managed service providers.
Service providers, in turn, can leverage this demand by offering on-demand teams of dedicated IT specialists who deliver service excellence, proactive IT management and best-in-class IT operations support and solutions. These service teams not only help businesses remain relevant in an increasingly competitive market, they offer 360-degree remote accessibility along with the right mix of skill, experience, and talent.
Service providers who offer to take charge of core IT maintenance, management and helpdesk functions offer another immense advantage to their clients – they help free up critical in-house IT resources, who can now focus on core business services, revenue enhancing tasks and IT strategy as opposed to daily monitoring and troubleshooting.
2. Strategic Business Partnership: It makes sense to partner with a service provider who can understand their client’s business goals and help them navigate the ever-evolving IT industry. A strategic business partnership built on trust and transparency offers peace of mind and complete IT asset security along with valuable advice to achieve business resiliency.
By offering to share the risks and responsibilities through a managed functional sourcing service model, service providers can become the catalysts for business growth. They can help reduce the risks, increase productivity and enhance the efficiency of their client’s IT team, offering real business value and IT operations optimization. :
3. Enterprise-level IT support: The difference between a good IT service provider and a great one comes down to a simple thing – how good is your response and support in times of need? By responding rapidly to outages and minimizing the downtimes, service providers can gain the trust of their clients who come to them with a sense of urgency. The functional sourcing team works as an extension of the client’s IT team to provide proactive support on a priority basis, helping to relieve the in-house IT team.
A great service provider can use the functional managed services model to offer on-demand, on-spot, 24x7x365 enterprise-level IT support that gives a sense of assurance to their clients. Even if it is something as simple as network operations maintenance, storage infrastructure and server monitoring and help desk duties, a speedy and responsive IT support can mean the difference between a client lost and a client gained.
4. Cost Control: Most enterprises choose to go to an IT managed service provider not just for the on-demand talent and specialized expertise they offer but also because they get the benefit of a full-time, enterprise-level IT team at a fraction of the cost. Managed IT service providers offer remote monitoring and management of IT operations, servers and network, security, backup and disaster recovery, as well as access to the latest tools and technology without breaking the bank.
Cost control can become one of the biggest USPs of IT service providers while showcasing their functional managed services. Service providers can leverage the benefits of automation and IT operations optimization to assure complete satisfaction to their clients.
5. Improved Security: As a service provider your clients are looking for 24×7, 360-degree monitoring, and management of the entire IT landscape. Additionally, in an age where security and data breaches have become all too common, companies are always on high alert and expect the same from their IT service providers.
As an IT functional managed service provider you can take it a step further by offering your clients proactive, 24/7 incident monitoring and preventive maintenance along with speedy issue resolution, if and when they occur. If your clients are the first to know of any outages, it can be resolved rapidly, even before it becomes a full-scale system interruption.
It is evident that Functional Sourcing teams, offering the benefit of improved integration, communication, and coordination, often across functional boundaries, are increasingly becoming the go-to sourcing models preferred by enterprises looking to manage and optimize their IT operations transformation and modernization. Service Providers who are already providing Functional Sourcing services no longer need a foot in the door are quickly adding new customers, and driving better margins with their clients.