Data Net Blog

In our last blog post, we discussed 3 reasons SMBs usually cite for not signing a service level agreement with an MSP. In this blog post, we suggest how an SLA with an MSP will add value to your business, irrespective of your business size, budget and the presence of an in-house IT team.

Managed IT services are becoming more popular by the day. Businesses, big and small, are bringing managed service providers onboard to handle their IT requirements. The bigger IT players like IBM, Accenture, CISCO act as MSPs to larger organizations, while the typical managed service provider is often hired by SMBs. However, there’s a question that crops up time and again--Do SMBs really need an MSP? SMBs are sometimes in two minds when it comes to bringing an MSP on board and typically use one of the following justifications.

Our IT requirements are limited

A lot of businesses in the small to mid-size range believe that their IT needs don’t warrant a full-time service level agreement with an MSP. They believe the only times they need to invest in IT is at the start of their business or when rolling out new technology. As a result, they don’t see much value in signing a service level agreement with an MSP.

We are tight on budget

SMBs also tend to cut on the IT budget and invest those funds elsewhere--generally in areas where they see tangible results, such as hiring new customer-facing staff or a new advertising campaign. So, when SMBs find themselves a little tight on the budget, the IT department sees the cut.

We have our in-house IT person/team

Businesses with an in-house IT expert or even a small in-house IT team feel that is sufficient for handling any IT needs and an SLA is just an added expenditure.

So, did your reason make it to the list? Stay tuned for our next blog post, where we will discuss how an SLA with a managed service provider can add value to your business.

In a recent industry survey, it was found that one of the biggest factors holding back small and mid-sized firms from achieving their business goals was IT. One may argue that smaller businesses lack the capital that the bigger players have to invest in their business, but even with all other aspects being more or less equal, the difference brought about by their lack of investment in IT was found to be a key differentiating factor--far more than other elements such as marketing, human resources and even industry expertise.

Many small or mid-sized businesses don’t focus much on IT as they should. For a lot of them, the focus is on customers, ensuring they have enough staff to meet their client needs, expanding their business and driving revenue by selling. IT comes into the picture initially when the business is being set up. Once they have their IT infrastructure up and running, it tends to take a backseat. The typical mid-sized or small business owner seems to prefer the firefighting approach to IT--meaning, they reach out to an IT service provider only when they have an IT problem.