Information Technology Systems are used to meet the standards of commercial operations, while offering full availability, security, and performance. In today’s society, corporations are expected to keep up with the continuous changes in IT, so many business owners are choosing a Managed Service Provider (MSP). Below, we’ll discuss which are the 5 most common industries that should have an MSP.
What Is An MSP?
An MSP is a third-party company that is hired for outsourced computing and IT-related job functions. These job day-to-day management functions include services like cloud computing, IT infrastructure, and cybersecurity threat monitoring. MSPs provide these services in a more cost-effective way than the enterprise can do alone. Since technology is always evolving and becoming more complex, by having a MSP your company will always stay compliant and up-to-date with the new changes.
What Industry is MSP In?
Managed service providers (MSP) oversee job functions within the Information Technology space. This IT space includes anything involving computer-related solutions like cloud hosting, data storage, backup and disaster recovery, telecommunications networking, wireless device connectivity, software licensing, and hardware procurement. Given how companies like CorCystems help manage the daily, routine operations of a business, MSPs are the backbone of the IT industry.
Why has the MSP industry grown so much?
The Managed IT Provider industry has grown significantly over the past decade due to a number of factors, including:
Increasing importance of IT
As businesses of all sizes come to rely more and more on technology to operate and compete, the need for IT support and management has grown significantly. MSPs offer a cost-effective solution for companies that do not have the resources to hire and maintain an in-house IT team.
Cybersecurity threats have become more frequent and sophisticated, which has led to an increased demand for MSPs that can provide security and data protection services.
Cloud computing centralizes and streamlines the access to computational resources, like applications, data storage, networking capabilities, and servers. Improved network connecitivty and lower-cost personal computers have created a perfect environment for cloud computing to grow. The adoption of cloud computing has increased as it allows for more flexibility and scalability than traditional IT infrastructure. MSPs are well positioned to help businesses take advantage of the benefits of cloud computing.
Remote work and Bring Your Own Device
With the rise of remote work and the trend of employees bringing their own devices to work, the need for remote management and support services has grown. MSPs can provide these services to businesses to help them manage their IT infrastructure and support their remote workers.
Regulatory compliance requirements
Many industries are facing regulatory requirements that they need to meet in terms of data protection and cybersecurity. MSPs can help companies to comply with these regulations by providing the necessary services and technologies. The increasing inter-connectivity and complexity of all these workplace tools has lead to managed IT service groups providing security compliance-as-a-service among their many offerings.
Small- and medium-sized business adoption
Small and medium businesses represent a large market segment that increasingly require IT services. While the initial costs adding a new piece of hardware or software has dramatically dropped in the past 20 years, the management and maintaince of still costs time and money. Small businesses may be able to purchase the monthly service charge for these solutions, devices, and SaaS platforms, but they cannot afford the cost of an in-house IT department. MSPs have grown to address this market segment by providing a variety of services that can be tailored to the specific needs of SMBs.
All these factors have driven the growth of the MSP industry over the past decade, as businesses have come to realize the cost and operational benefits that MSPs can provide. With the ongoing development of new technologies, the need for MSP services is likely to continue to grow in the future.
Benefits of Outsourcing to MSP Industry
The managed service provider industry has been growing at a rapid pace in recent years, with more and more companies outsourcing their IT needs to these providers. Most companies invest in IT solutions to improve the flexibility, efficiency, productivity, and scalability of their work processes. Though, the benefits of digitizing and automating these workflows can prove burdensome when considering how much time is required to manage these complicated, interconnected systems. Despite the coordination loss required for managing your IT infrastructure, there are a number of benefits that come along with investing in managed it service providers, which include:
- More efficient and reliable IT operations
- Enhanced security and compliance
- Data backup and recovery
- Cost Effectiveness
What are the types of Managed IT Services?
There are various types of managed IT services provided by MSPs. Not all MSPs offer all services, and not all MSPs specialize in all types of managed IT services:
This includes monitoring and maintaining the performance of an organization’s network infrastructure, including routers, switches, and servers.
This includes managing and maintaining an organization’s cloud-based infrastructure, such as servers and storage, as well as services like Software as a Service (SaaS) and Platform as a Service (PaaS).
This includes managing and maintaining an organization’s security systems, such as firewalls, intrusion detection and prevention systems, and antivirus software.
Backup and Disaster Recovery:
This includes creating and maintaining backup copies of an organization’s data, as well as developing disaster recovery plans to ensure that data can be restored in the event of a disaster.
Help Desk and Technical Support:
This includes providing end-user support for an organization’s employees, as well as remote and on-site technical support for an organization’s IT systems.
IT strategy consulting Services:
This type of service offered by vendor or IT expert company, which helps to provide the organization with strategic advice and guidance on IT-related matters, including technology planning, implementation, and management.
There can be some variations and overlaps in the different types of managed IT services, as many providers offer a range of services that can be customized to meet the specific needs of a business or organization.
This is how the managed service provider industry is booming with growth rates of over 10% annually.
MSPs are now a $100 billion dollar industry with over 100,000 companies in the space.
5 Industries that Could Benefit from an MSP
Listed below are five examples of industries that would successfully grow from having a managed service provider.
1. Auto Dealership Industry
Price doesn’t sell a car. A salesperson sells a car. But they need a little help getting it done.
Automotive dealers and shops rely on their IT systems for almost everything. We’ve noticed that smaller, independent proprietorships owned-operated by a single person or family can usually manage their limited operations by themselves. Most dealerships are fairly small affairs, with 94.2% of dealership owners owning 1-5 different dealerships.
For better or for worse, dealership operations like sales and marketing, finance, service, parts, delivery, inventory, accounting, and fixed ops can usually float about inside an owner’s head. Whether they are processing payments, communicating with clients or repairing vehicles, an IT system has become a crucial part of their company’s day-to-day operations.
Where off-the-shelf software packages can effectively manage, synchronize, and automate internal operations for the benefit of the customer, they’re fairly limited in their scope.
Most people think that an auto dealership would be nothing with its auto mechanics, but we know it’s really the auto dealership’s customer relationship management software that keeps the wheels turning. A CRM solution stands between various salespeople on the sales floor, the unconfident customers walking through the door, and sales managers looking at their teams’ monthly KPIs.
Any quality CRM will usually help customer-facing employees in a variety of ways. First and foremost, CRMs need to be simple and easy for the end-user. They can achieve this by providing flexibility and convenience in customization, accessibility, and utility. Once any user is habituated to using the CRM, then the full functions and features are opened up. These functionalities include automating sales and marketing workflows, contact or account synchronization, or managing the lead opportunities themselves.
Although closing deals is how an auto dealership can keep the lights on, dealerships serve other functions:
- Provide ongoing car maintenance packages or ad hoc auto repair service
- Supply OEM auto parts to other repair shops or DIY consumers
- Source and offer in-house financing packages
- Calculate and allocate sales commissions to their sales teams
- Order OEM auto parts for both the Parts and the Repair departments
- Track total incoming revenue and outgoing expenditures for accounting purposes
Even the best CRMs like Salesforce, NetSuite, Zendesk, or Pipedrive couldn’t manage all of the non-sales functions required by auto dealers.
That’s how both independent and franchise dealerships alike find themselves cobbling together a hodgepodge of tech solutions with a low barrier-to-entry to get every department up and running. Momentum is what dealerships are focused on, without considering the longer-term implications of disjointed software solutions.
For bookkeeping functions, small businesses usually leverage turn-key accounting solutions with ready-made integrations with other banking services and their larger financial tech stack. From managing accounting ERP, spend and expense management, accounts payable and receivable, and payroll, these systems can all function seamlessly with cloud-based SaaSes like QuickBooks, FreshBooks, Sage, or Xero offer a intuitive interfaces and templated workflows.
For maintaining supply levels of their OEM auto parts, ERPs provide the appropriate solution to the question of how to manage all these moving parts. Behemoths like Oracle, SAP, Sage, Microsoft all have their closed-loop proprietary ERP softwares that ease inventory management.
For more sophisticated auto dealerships within the industry, dealership management systems consolidate this scattershot of solutions into a single-point of inventory management, customer relationship manager, finance & insurance, and fixed ops. While some of the major auto brands incentivize local dealerships to use their white-labeled tech bundles, these only apply for new car dealerships. In Connecticut, around 80% of car dealerships are focused on used cars. This means that most of the car dealerships in Connecticut aren’t using bespoke dealership management software solutions.
IT work having to be done in the back office can take valuable time away from your business needs. The benefits of a MSP allows companies to have peace of mind knowing that their technology is completely taken care of. Not only will your technology be taken care of for you, but you will also see a reduction in overall expenses.
2. Healthcare Industry
Nowadays, more and more healthcare facilities are realizing that overall patient care doesn’t just involve medical attention. It also deals with making sure your patient’s data is secure.
One way to do this is by working with the right managed service provider (MSP) to ensure that transactions go smoothly and patient data is always protected.
When you work with a provider that is able to provide you with assistance whenever and whenever you need it, you are guaranteed:
- Fast response times
- Proactive security
- Staffing services
- Business Continuity
3. Hospitality industry’s need for high-speed wi-fi
The need for industries having a trusted IT staff is more necessary than ever before. The hospitality industry is no exception. The main concern in this particular industry is to always make sure that your guests are having the perfect customer experience. Having a managed service provider will allow you to achieve that goal.
Hospitality means guests. Because the hospitality industry deals with a huge amount of guest’s data, they require the right form of security, always ensuring they are compliant with rules.
Guests also don’t want to experience slow internet when they’re using WiFi network. If restaurants, hotels, or country clubs are offering WiFi as a value-add to the customer experience, then that offering should be a pleasurable one.
Technology is relied on in the hospitality industry through booking/ordering systems, and restaurant/room Wi-Fi networks, so it’s more important than ever to protect your business and data.
4. Finance industry
Using managed service providers is a strategic way to better organize, operate, and safeguard your business. As financial companies try to get through today’s unpredictable economic and regulatory system, the need for risk and compliance management is increasing as more companies are using security compliance as-a-service solutions.
Being a financial service company, you work with customer’s sensitive and personal data on a daily basis. Enhancing your customer’s experience includes protecting their information. Nowadays, businesses are under pressure to provide customers with high-quality IT services, so they can assure that their data is always safe.
Not only is data protection the only thing to worry about there are also many potential threats from external and internal sources:
• Cross site scripting
• SQL injection
• DOS, DDoS
• Stolen credentials/identity
• Brute force logons
• Failed 2FA attempts
• Failed reset passwords
• Trojan horses
Investing in an MSP will present your business with many benefits like:
- Saving time and money
- Having access to top technology
- Working with knowledgeable experts
5. Manufacturing Industry
The American manufacturing industry is facing fierce global competition from the world’s emerging markets. The competition and the complexity has increased considerably across the manufacturing space, whether its integrated supply chains, optimizing logistics, or monitoring processes for regulatory or safety compliance. This increases the time required for each task, which ultimately requires more human and financial capital investment.
To meet these challenges of manufacturing in the 21st century, domestic manufacturers have adapted, innovated, and evolved. These innovations to the manufacturing process include a fully integrated army of computer systems, IOT devices, and highly specialized machinery, all providing a continuous feedback of analytics. Whether the analytics is quality control, production flow, inventory, packaging, facility management, safety and security, and many other vital functions, the manufacturing industry is heavily invested in fully digitized systems.
That’s why community colleges and trade schools are training the next generation of manufacturers to be adept at engineering-specific skills as well as technical writing and comprehension. Up to 35,000 skilled workers will be needed in Connecticut in the next 20 years, according to Connecticut State Colleges and Universities president Mark Ojakian. With 20-year forecasts showing Connecticut in need of 35,000 skilled workers, it’s no wonder why Capital Community College and Connecticut State Colleges and Universities are investing so much in manufacturing programs, with the latter establishing new advanced manufacturing centers at Housatonic Community College in Bridgeport, Naugatuck Valley Community College in Waterbury, and Quinebaug Valley Community College in Danielson. According to the Connecticut Business & Industry Association’s 2017 survey, the manufacturing industry needs graduates with advanced technological skills, such as computer and software programming. Long gone are the days of the Henry Ford and dark gritty factories with unified assembly-line work.
While robotic automation is on the horizon for a lot of the assembly line work, that automation will have to be guided by skilled workers connected to IT networks, sharing CAD drawings across IT infrastructure. These CAD drawings usually containing proprietary semantic PMI data like geometric dimensioning and tolerancing, bill of materials, export control notices, and other metadata notes need to travel across various departments and potentially some outside vendors, exposing any one recipient in the chain of collaboration to data security breaches. This is why we offer managed IT services for the manufacturing industry.
Manufacturing companies have unique and special technology needs that should only be handled by a professional IT service provider. Since manufacturers handle a lot of transactions that include many moving parts, IT security is a big concern.
Whether the financial information your customers have trusted you with is simply being stored in your records, or is being shared and transferred between locations where you operate, it should always remain secure.
Selecting the Right MSP for Your Industry
The managed service provider industry has been growing at a rapid pace in recent years, with more and more companies outsourcing their IT needs to these providers. This has led to a large number of managed service providers that have sprouted up, increasing competition in the field which often leads to lower pricing. However, quality varies widely among these companies, as evidenced by emergent cyber security trends as well as the many US-based data breaches and other data back-up disasters. As such, clients should be sure to thoroughly vet their managed service provider before signing on.
CorCystems Managed IT Services Can Assist You
In a time when technology plays a part in every aspect of the work businesses do, it is critical to ensure that your managed IT solutions is up to the challenge.
We are here to answer any questions you may have about the services we offer, or on how else an MSP can benefit your company. Feel free to give us a call today! (203) 431-1341.