Getting Value for Money from Managed IT in 2024

In mid-December last year, the Bank of England held interest rates steady at 5.25% for a third time, stating that Britain was facing a tougher job than other advanced nations when it comes to pushing rates down and meeting the – seemingly a long way off – 2% target. 

The Bank maintains the view that the cost of borrowing needs to be “restrictive for an extended period of time” – a sentiment that’s hard to hear for many households, as well as businesses, that have been operating in a resource deficiency for time.  

Many had hoped that 2024 would bring better news, however, given the ongoing cost of living crisis and risk of recession still looming, early 2024, at least, remains a cautious time for the UK when it comes to spending.  

Indeed, according to the Office of National Statistics, in December 2023, 62% of businesses have some form of business concern around matters of finance, including falling demand for goods and services (19%), energy prices (10%), and inflation of goods and services (8%). 

A new outlook for the New Year?

We know that the New Year usually brings about renewed focus – it’s a time for organisations to set goals, renew budgets, and perhaps even invest in new services that bring more value to the table during trying times.

As a managed IT service provider partnered with organisations across diverse industries (including financial services, Government, utilities, housing, and healthcare), we see it a lot here at Littlefish; the value of working with an effective external supplier and getting value for money simply doesn’t look the same for everyone.

Understandably, in recent times, many organisations are looking for value in the form of direct cash savings, however outsourcing offers many value-laden and cost-effective benefits, including being able to prioritise focus on other core business activities, boosting productivity across the organisation, and lessening recruitment and/or training costs.

[textframe]Five ways organisations gain value from outsourcing:  

Boosting progress – when times are hard
Progress can sometimes stagnate as teams are snowed under with routine tasks to stay afloat with little time to regroup and refocus on the bigger picture. Outsourcing integral functions can help give teams back time and perspective, lending them more room to innovate.

Helping improve customer service
Vital when it comes to business success, customer service remains a high priority for organisations in 2024. These days, customers are used to receiving services quickly and efficiently, and often via digital means. Outsourcing services such as IT, telecoms, and other operations can help organisations offer better, more joined-up and seamless services, while also providing teams with more time to focus on good service.

Lessens risk
Managed service providers come equipped with the expertise and knowledge necessary to comply with regulations and monitor, plan for, and mitigate operational risks caused by failed or outdated processes.

Helps organisations focus
Outsourcing an integral business process like IT enables your staff to concentrate on strengthening and improving the core competencies that help your business grow.

Helps organisations modernise
The world of business is fast paced, from branding to technology, training, and working environments, it’s crucial that organisations keep up to ensure maximum efficiency and quality of services. [/textframe]

Working with a managed IT provider

A managed IT service provider is likely to offer functions including IT service desk, modern workplace management, network and infrastructure management, cloud computing, and cyber security.

As specialist areas with hard-to-recruit-and-maintain skillsets, it makes sense for many organisations to look outward for IT services rather than sourcing them in-house, which can prove time-consuming, stressful, and even quite costly.

As well as bridging the skills gap in these areas, outsourcing IT can help improve efficiency and productivity through strategic IT consultancy and investments in better digital employee experiences (DEX). Not to mention, constant and cyclical digital transformation is fast becoming an essential process for organisations in 2023 and, with the help of outsourced IT support, can be utilised to improve operational agility and collaboration, enhance data privacy/security, and offer better customer experiences.

Making tangible cost savings with managed IT

It’s true that an effective IT managed service provider can be a valuable asset to have by your side in 2024 – particularly so for organisations looking to improve services while also dealing with resource deficits and an admittedly dreary economic forecast.

These days, managed IT service providers play a varied role in the success of their customers. Naturally, this involves working on IT strategies and implementation, but it also involves helping to meet wider business goals such as improving efficiency and productivity, providing business insights that inform IT investments, and even easing flexibility and scalability.

Still, let’s talk turkey. There are a number of common efficiencies our customers (or potential customers) seek upon engagement for managed IT services, particularly when we’re speaking with those in finance and procurement roles that are more interested in the nitty gritty of cost-saving benefits from managed IT.

To this end, we’ll round off this article with a look at precisely how our customers have gained value and cost efficiencies recently and the insights these benefits might offer as we head into 2024.

[textframe]As well as creating cash-savings on contracts associated with IT benefits, working with an external IT partner can also: 

Increase return on investment for existing IT/digital environments
Many organisations aren’t utilising their IT infrastructure to its fullest extent (in fact, we oftentimes work with customers that simply aren’t aware of everything their licensing or software package includes). Working with a managed IT partner can help unlock previously unknown capabilities and efficiencies inside already paid for services, therefore adding nothing to the budget.

Improve end-user satisfaction
These days, most organisations rely on technology to run, and improving digital employee experience can benefit organisations in many cost-effective ways, e.g., enabling flexible working models, reducing frustration and staff churn, enhancing productivity, and improving communication and collaboration (and therefore efficiency).
Help develop mature governance
Good governance intrinsically adds value. It’s transparent and ethical and always focused on tackling operational challenges in ways that complement the organisation’s business vision. Working alongside a managed IT provider can offer clear, strategic direction and leadership when it comes to areas such as cyber security and data protection, including implementing specific measures to avoid paying ransom fees from cyber-criminals.

Improve cyber maturity
On the matter of cyber security, it’s also worth bearing in mind the increasingly cautious nature of cyber insurers. It’s common nowadays for underwriters to ask organisations to document their cyber security practices if they are to qualify for coverage and secure a reasonable premium. Therefore, working with a managed cyber security provider to get ahead of the curve and implement a robust cyber strategy can help organisations become cyber-prepared and keeps premiums down.

Leverage operating capital to help finance IT-related investment
Where there is a significant requirement to upgrade legacy IT infrastructure, partnering with an IT managed services provider on a “as a service” basis can help provide greater bang for your buck by transforming costly upfront capital expenditure into more affordable monthly payments. In addition, the right partner will also help reduce IT investment/CAPEX risk by leveraging their experience and ensuring the right technology is deployed at the right time and scale for your business. [/textframe]

To see how Littlefish can help you maximise the benefits of your IT investment, increase service quality, and support your 2024 business goals, please feel free to contact us through our get in touch button.