Question 1

What are managed IT service providers?

Accepted Answer

Managed service providers (MSPs) are third-party organizations that offer specialized, proactive IT management for businesses that don’t have the in-house resources or expertise to do it on their own. This enables brands to focus on their core activities while ensuring their technology infrastructure is efficient, secure, and scalable.

Managed IT service providers are more than just outsourced technical support. It continuously monitors and manages networks, applications, systems, and processes to prevent issues before they occur. This prevents downtime and security breaches that can have significant financial and reputational impacts.

Question 2

What do IT managed services providers do?

Accepted Answer

IT services management companies proactively manage their clients' technology infrastructure, ensuring they are up-to-date, secure, functional, and efficient. They handle various tasks, from monitoring and maintaining IT systems to providing cybersecurity and help desk support.

For example, an MSP can implement:

A 24/7 remote help desk support for a retail chain
Advanced cybersecurity for a healthcare provider
Disaster recovery plans for a law firm
Cloud migrations for a startup
IT compliance for a financial institution

The most common types of managed IT services include:

1. Help desk

Help desk service is essential for organizations without in-house IT support. This typically includes 24/7 remote assistance for employees and/or customers, which minimizes the impact of technical issues on your organization’s productivity.

2. Security management

This critical service protects an organization's IT infrastructure from cyber threats. It includes security monitoring, threat detection, antivirus management, firewall management, and incident response.

3. Disaster recovery and data backup

This service ensures that a business's files and databases are regularly backed up and can be quickly restored, preventing significant data loss and downtime.

4. Network infrastructure (cloud, SaaS, etc.)

This service includes the management of essential IT infrastructure such as networks, servers, and storage systems. Providers often handle these systems' setup, migration, monitoring, maintenance, and optimization.

Some MSPs may assist with more specific network solutions such as:

Cloud services: Providers manage cloud services such as Amazon Web Services (AWS), Microsoft Azure, or Google Cloud Platform.
Software-as-a-Service (SaaS): This includes managing and maintaining software applications provided over the Internet.

IT management companies monitor and maintain organizations’ systems and networks to ensure consistent uptime, minimize the risk of financial loss, and keep productivity optimal.

5. Reporting and analytics

This service involves managing tools and infrastructure for data analytics. Providers help in data collection, storage, analysis, and reporting, allowing businesses to gain insights from their data.

6. Other managed services

Additional services provided by MSPs might include:

Communication services: This includes the management of communication technologies like Voice over Internet Protocol (VoIP), email, and video conferencing systems.
Print services: Providers manage all aspects of an organization's printing devices, including printers, copiers, and faxes. They handle maintenance, supply replenishment, and usage tracking.
Mobile Device Management (MDM): This involves managing and securing a company's mobile devices, like smartphones and tablets, to make sure they comply with company policies.
Vendor management: Handling relationships and communications with other technology vendors on behalf of the client.
Consulting and advisory services: MSPs give expert advice on IT strategy, infrastructure design, and technology investments.
Compliance and regulatory management: These providers ensure IT systems and processes comply with relevant industry standards and regulatory requirements.

Question 3

What is the difference between IT services and MSPs?

Accepted Answer

The differences between IT services and MSPs are in their scope, delivery model, and client relationship.

IT services generally refer to specific technology-related services, while MSPs provide comprehensive, ongoing management of a client's entire IT infrastructure.

IT services have the following characteristics:

Specific solutions: They typically address specific needs, like software development, network setup, or hardware installation.
Project-based engagement: These services are often hired on a project basis to address specific issues or implement new systems.
Direct control by client: The client usually retains control over the IT environment, and IT services are engaged as needed.

MSPs are defined by their:

Comprehensive management: MSPs offer ongoing management of a client's entire IT infrastructure, including networks, servers, devices, and software.
Subscription model: They operate on a subscription basis, providing continuous monitoring, maintenance, and support.
Proactive approach: MSPs aim to prevent issues before they occur and ensure smooth IT operations.

Question 4

What is the difference between outsourcing and managed services?

Accepted Answer

The differences between outsourcing and managed services are in their scope, control, and approach to service delivery.

Outsourcing typically involves contracting out specific business processes or tasks to a third-party provider. In contrast, managed services manage an IT function or infrastructure under a long-term, proactive engagement model.

The characteristics of outsourcing are:

Task-specific services: Outsourcing usually focuses on tasks or business functions, like customer support, data entry, or other specific IT tasks.
Short-term or project-based: It's often used for short-term or time-bound projects.
Client-defined scope: The scope and work methods are typically defined by the client.

Managed services include:

Comprehensive IT management: Managed services involve comprehensive management of IT functions, such as network management, data backup, and cybersecurity.
Long-term, proactive approach: These services are offered long-term, focusing on proactive management to prevent issues and optimize performance.
Provider-driven management: The managed service provider typically has more control over the IT environment, managing services according to agreed-upon performance metrics and outcomes.

Question 5

How much do IT managed service providers charge for their services?

Accepted Answer

Managed services providers typically charge from $175 to $250 per user per month, depending on the package inclusions. The top 50 managed IT service providers on DesignRush charge an average of $68/hour.

Other payment structures cost the following per month:

Per device
- Servers: $200 - $250
- Individual devices: $50 - $100
- Networking equipment: $25 - $75
À la carte: $30 - $100/user
Tiered pricing: $3,000 - $6,000

Several key factors can affect the cost of managed IT, including:

The type of services provided
The level of involvement required from the managed IT experts
The complexity of the client's infrastructure
The business industry
The amount of data that needs to be backed up
Whether the business already has an IT team

Roughly 13.7% of IT managed services providers on DesignRush accept projects with a minimum budget of $1,000, while only 2.7% have a $50,000+ minimum budget.

Question 6

Why should you hire IT managed services providers?

Accepted Answer

You should hire managed IT service providers because they allow you to concentrate on your business's core competencies while they efficiently handle time-consuming IT projects.

In a market where the demand for managed IT solutions is rapidly growing, with revenue expected to reach $356.24 billion by 2025, these providers help small businesses and established companies stay technologically agile and competitive.

These are the key reasons to hire a professional managed IT provider:

1. Access to experts

You get access to an entire team of highly qualified and experienced IT professionals. They have the necessary training, certifications, technology, and tools to implement solutions easily and quickly.

2. Data compliance

Managed IT providers understand and handle the complexities of compliance, ensuring that your organization meets all of the requirements and regulations. Following these rules minimizes the risks associated with maintaining client data, credit card numbers, and other vital information.

Some of the most widely applicable standards are:

Health Insurance Portability and Accountability Act (HIPAA)
Payment Card Industry Data Security Standard (PCI DSS)
Sarbanes-Oxley Act (SOX)

3. Security

In November 2023, there were 470 publicly reported security incidents, resulting in a total of 519,111,354 compromised records. With the rising number of data breaches and cybersecurity incidents, MSPs' robust security management services are more invaluable.

4. Minimized downtimes

The best illustration of how expensive downtime can get is Amazon, which lost $34 million in sales because of just one hour of downtime. Depending on industry and company size, the cost of IT downtime can range from $5,600 to $9,000 per minute.

Managed IT providers can reduce the potential risk of system malfunctions. They take a proactive approach to maintenance, identifying potential problems before they turn into a crisis.

5. Increased efficiency and competitiveness

Outsourcing IT management improves issue resolution speed, system health, business efficiency, and competitiveness, allowing in-house teams to focus on core business activities.

6. Fixed monthly costs

Managed IT specialists in the USA typically operate on fixed monthly payment plans that are tailored to the organizations’ needs. Clients know, upfront, how much and what they are paying for.

Kanda Software's case study with Deployed Resources showcases the significance of having a dedicated managed IT service provider. Deployed Resources faced challenges with its outdated asset management application, DRAT, which struggled with performance and user interface issues. It partnered with Kanda to develop DRAT 2.0, a modernized version with improved functionality.

Hosted on AWS, the new system efficiently migrated over 2,000 assets and introduced advanced features for better inventory management, offline data synchronization, and desktop/mobile use. Kanda Software also added security controls and provided detailed, automated reporting, significantly improving the company's efficiency and data management capabilities.

Question 7

How to choose a managed IT service provider?

Accepted Answer

To select a reliable managed IT support company that delivers reliable managed services and has capabilities critical to your business, follow these key steps:

Define your IT needs: Identify specific managed IT services you require, like network management, cybersecurity, or data backup.
Research potential managed service providers: Look for managed IT companies with experience in your industry. Check online reviews, ask for referrals, and browse their websites for service details. Ask for their previous work, case studies, or client testimonials to gauge their experience and success.
Evaluate their expertise: Confirm that the company has proven expertise in the services you need and, preferably, your industry. Check the MSP’s certifications, which should include but aren’t limited to:
- ISO/IEC 27001: A global standard for information security management, ensuring the MSP maintains secure data handling
- CompTIA managed services Trustmark: An industry credential that shows the MSP follows best practices in service delivery and customer relations
- Microsoft Certified Partner: Indicates expertise with Microsoft technologies
- Cisco certifications (CCNA, CCNP): Shows proficiency in managing Cisco network products and solutions
- AWS and Microsoft Azure certifications: Demonstrate skills in managing services on popular cloud platforms
- ITIL certification: Reflects adherence to best practices in IT service management
- Cybersecurity certifications (CISSP, CISM): Indicate strong capabilities in protecting information systems from cyber threats
- Data privacy certifications (CIPP): Shows expertise in data privacy management
- Project Management Professional (PMP): Demonstrates proficiency in effectively managing and executing IT projects
- Vendor-specific certifications (Dell, HP, IBM, etc.): Indicate expertise with specific hardware and software solutions from these vendors
Shortlist and request proposals: Narrow down your choices and send out requests for proposals.
Interview potential candidates: Meet or call potential providers to understand their team and approach better. Ask questions about their process, services, communication style, and workflow.
Decide: Focus on the value provided, not just the cost. Choose the company that aligns best with your requirements, budget, and work culture.

Do you need help in selecting the right managed IT services provider? Go to our Marketplace and tell us about your project. We will connect you with the best companies based on your specifications — for free.

Question 8

What questions should I ask a managed IT support company?

Accepted Answer

The questions you should ask a managed IT support company include the following:

Its Relevant Background

What's the size of your company and your history in this field?
How much experience do you have in our industry?
Can you provide examples of projects similar to ours? Can you offer client references?

Company Services and Processes

What’s your approach to managing IT services?
Do you offer specialized services like cybersecurity or cloud management?
What tools and technologies do you use?
What is your response time for IT issues?
How do you ensure continuous system uptime and reliability?
How do you ensure data privacy and integrity?
Do you provide detailed reporting and analytics?
Are your services scalable to match our business growth?
How do you stay updated with the latest IT developments?

The Project

How will you tailor your services to our specific needs?
What is the process for onboarding our company?
Can we meet the team who will be handling our accounts?
How will we communicate and collaborate on ongoing projects? How quickly can I expect a response from you?
What are the expected outcomes for our business?
How do you handle changes or additional requirements mid-project?
What are your pricing models and what does it include?
Are there any long-term contracts or commitments involved?

Question 9

What are the best managed IT service providers in the US?

Accepted Answer

The best managed IT service providers in the US are:

Kanda Software
- 4.7 stars on DesignRush (15 reviews)
- 4.8 stars on Google (8 reviews)
- Top clients: OneSky, Rue La La, Imprivata, Lionbridge
Suffescom Solutions Inc
- 5.0 stars on DesignRush (36 reviews)
- 4.7 stars on Google (89 reviews)
- Top clients: Modani Furniture, King Cubs, Lead Action, PropertyMe
Apptension
- 4.7 stars on DesignRush (18 reviews)
- 4.7 stars on Google (18 reviews)
- Top clients: Heineken, Netflix, Uber, Spotify
Saigon Technology
- 4.9 stars on DesignRush (54 reviews)
- 4.6 stars on Google (71 reviews)
- Top clients: DMI, YPO, One Harvest, MTM
LeverX
- 4.8 stars on DesignRush (11 reviews)
- 5.0 stars on Google (2 reviews)
- Top clients: 3M, PHILIPS, SAP, DHL

Scroll up to learn more about our suggested agencies and other leading managed service providers. We recommend providers based on their successful projects, industry reputation, customer reviews, and team expertise. If you want to further personalize your search, you can sort companies by location, budget size, hourly rates, and reviews.

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