Managed Service: a beneficial outsourcing solution

Categories: APM, News, NPM

IT decision makers are increasingly inclined to choose outsourcing due to its financial and human benefits for the company and its employees. Here are some good reasons to choose a managed service.

 Managed service: a high value-added solution

A managed service is the proactive management of responsibilities and functions (administration, updates, availability, implementation, operating support) by a third party. For companies with limited, fragmented or no dedicated skills internally, it is an efficient alternative for managing changing IS needs which fluctuate as they develop.

Facilities management providers usually invoice the customer only for the work performed. In principle, they are linked to free technologies and do not always offer stable and satisfactory technical support. These services may have hidden training or licensing costs which can come as an unpleasant surprise to decision makers.

A managed service, on the other hand, is a high value-added alternative to this on-demand service model. The customer and managed service provider are bound by a contract pertaining to a subscription according to the scope and level of support required. To find out more about this type of service and its insurance approach, download our white paper on the managed service: Optimize your ROI with IT performance measurement

Outsourcing as OPEX to spread costs out over the year

When closing the budget, IT decision makers need to justify the commitment of new investments or identify cost-cutting opportunities. For example, to find out the impact of cloud migration on the user experience, they need a 360-degree view of the information system. With the managed service, thanks to support from expert analysts and engineers, they gain the autonomy that is key to effective governance.

Reduced IT budgets are driving decision makers to prioritize operating expenditure (Opex) over capital expenditure (Capex). With the managed service, outsourcing of application performance becomes an Opex, spreading the cost out over the year. The managed service is commonly presented in the form of an overall package including the activation of the portal and the configuration and operation of the performance measurement portal including software updates, change request management, remote training and support from experts. The costs for these services are controlled and detailed in your quote upfront.

In addition to the economic considerations common to all managers, Quality of Service (QoS) and Quality of User Experience (QoE) are also examined, as well as the flexibility and skills of the chosen provider. With the managed service, costs are controlled and the relationship between contacts is maintained over the years.

Le Service Managé : une solution d’externalisation avantageuse