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Are Internal IT Departments Dead?

Are Internal IT Departments Dead? 150 150 Greenlight Managed IT Support Services | Sydney | Melbourne

computer-beavis-butthead-struggleThere, I said it. It became clear in a recent conversation I had with a business owner that the future of the in-house IT department is limited at best.

The client in question owned a business with over 40 full time employees, including its own IT department of about three people and Tim (not his real name), the IT manager. But I’ll talk more about this in a second, because I have a question to ask you.

Why is McDonalds is successful? Don’t look down yet, I want you to ask yourself why.

This is a tough question for most people. You know, because the food sucks. So it’s not due to the quality food, nor is it cheap (anymore).

It’s because it is so consistent. The service provided as well as what you get—it’s the same! No matter where in the world you are! Isn’t that just a little crazy?

Consistent, predictable– a staple option for when you just want a quick bite. And what is it that makes this possible? GREAT SYSTEMS! When your teenage son or daughter get their first job at McDonalds, they undergo the same exact training experienced by everyone else. It’s ALL documented in a pretty scary-thick training manual.

So let’s return to the business owner, and the tumultuous history of their now-gone IT department. When all IT staff were at the ready, the ship sailed just fine. But one day Tim, their experienced IT manager, abandoned ship for a better offer. With two weeks’ notice, this created considerable problems.

For one, Tim had not found the time or inclination to document procedures. Verbal communication and emails meant Tim left with most of that information in his brain. What followed Tim’s departure was grim, to say the least. The cost of their IT department on the business skyrocketed. Costs like:

  • Hardware and software. Tim had formed relationships with suppliers, and understood the discounts and when to order. When Tim left, sporadic sourcing pushed costs way up.
  • Maintenance costs. By not maintaining hardware and software, more bugs and failures began to pop up. This meant more down time for staff, and a frustrated IT support team.
  • Training. Because the IT department was now so busy, the owner hired another technician. With no documented procedures, it was up to the existing IT team to train them up, frustrating for all involved. Most staff usually take a few months to settle in and be independent performers, and that costs you money. If you couple that with the need for other staff to train them, to fill them in, then that cost continues to go up.

Now this post is not suggesting Tim was at fault, nor can business owners always predict these things will happen. We hire people we like, and who are good at what they do. Sometimes life, and these situations, just happen. It’s a learning experience for all involved.

That’s kind of why companies like Greenlight exist. Managed Service Providers offer some distinct advantages to keeping IT Support in-house.  Here are just a few:

  • No key-person risk. MSP’s have one job, fixing or looking after your technology needs. That’s pretty much it. We need more IT managers than other companies, and document everything. That means consistency in the service we provide, and that if someone internal moves on, it does not affect our clients.
  • Economies of scale. With a bigger team servicing more companies, MSP’s offer leverage. Reduced costs to you as a business owner, AND you get to tap into the ‘cream of the crop’ when it comes to expertise.
  • Better use of YOUR resources. You can invest the money you would spend on an IT department into things that make more sense for your business. Whether it’s a bigger or better sales or marketing team, or R&D to make your products and services better than the competition. Whichever way you look at it, you get better results for less money.

Do you agree or disagree? Let us know. And if you’ve got your own IT department in-house, give us a call on (02) 8412 0000. We may just be able to save you some money as well as a few headaches.

Why Every Company Should Consider Co-Managed IT Services

Why Every Company Should Consider Co-Managed IT Services 150 150 Greenlight Managed IT Support Services | Sydney | Melbourne

You’ve always done it yourself. But now, things are coming to a head. You’ve stretched your IT department too thin, and you’re concerned about the level of service that they can offer to your expanding list of customers. Not only that, but you simply can’t afford the new equipment and staff you desperately need to properly service your clients. You’ve reached your breaking point. What do you do?

Thankfully, there’s an easy solution. Using co-managed IT services can get rid of the stress and expenses that arise when your IT department needs grow faster than you do. Unlike managed services, co-managed services offer all the benefits of managed services, but with fewer downsides. Here are seven great advantages to using co-managed IT services.

Benefits of Co-Managed IT Services

Lower Equipment Costs

Paying for equipment, software, and remodelling costs are all major expenses that a business often bears when expanding its IT resources. However, when using co-managed services, the company running these services will be the one bearing these costs, meaning that you no longer have to make an expensive capital outlay to keep your IT department up to speed with your customer needs, according to inTechnology.

Lower Labour Costs

Using co-managed IT also allows you to reduce your labour costs, according to essent.com. Without a co-managed IT plan, you may end up having to hire additional specialised tech support and paying out the increased higher salaries. While training your own staff is an alternative, this would lead to your business having to foot the bill for training and certification. In addition, these newly trained IT staff members will struggle to cope with both their previous roles and IT demands. By using co-managed services, you’re relieved of the burden of having to either train or hire specialised IT staff, saving you money on labour costs.

Less Downtime and Risk

Using co-managed services allows you to reduce the downtime and the amount of risk that your IT department faces. By utilising a co-managed services provider, you will have available to you superior troubleshooting services. These providers have the experience to effectively solve complex issues or problems that crop up far more easily than in-house IT services, and are equipped with a specialised suite of tools that can also offer better solutions. In addition, they are often able to address potential problems before they can cause a negative effect on your business, reducing downtime for your business.

Better Efficiency

Co-managed IT services can provide better efficiency due to their concentration on IT. Unlike a business that has one or two in-house IT personnel, companies that offer co-managed solutions have far more experience and knowledge in the IT business. They have worked out the best practices and their specialisation results in less time wasted and more productive employees, meaning that tasks get done far more quickly and efficiently than if they were done in-house by your business, according to Essential Link.

Better for the Environment

Guess what? Using co-managed IT services are actually better for the environment. Because of the centralised nature of co-managed IT services, your business saves on expensive energy costs that it would have incurred from running the necessary equipment. This also means that you utilise less fossil fuels and reduce your carbon footprint.

Customization and Control

Co-managed IT services offer all the benefits of ordinary managed services, but with a higher level of customization and control, according to the Utility Company. Co-managed IT allows IT departments to extend their capabilities through partnerships to shore up key areas of service and support, while in turn being able to have a high level of customization and control over the entire process. As a result, co-managed IT service users get the best of both worlds – the benefits of using managed services but the choice of a far higher level of input and transparency.

Better Focus

Your co-managed IT service provider will allow you to concentrate on your most important area – your business! Instead of having to worry about IT needs, a co-managed IT service provider will take care of those worries for you, even more efficiently and effectively than you possibly could. With a real “fix it and forget it” approach, your service provider will take all of the stress and technical details while you concentrate on more important aspects of your business.

Using co-managed IT services is a great way to increase the efficiency and productivity of your IT service department without putting a big strain on your budget, and can actually end up saving you money in the long run. By speaking to a company that offers co-managed IT services, you too can release the strain on your overburdened IT department and raise the standards of your IT services.

Still got your attention? Get in touch and we’ll be happy to provide you with an overview of how we could help your business.