Managed Services Deep Dive

Contents

Introduction.

Outsource Routine Tasks, Focus on Strategic Value.

Understanding the Full Cost of In-House Resources.

Managing Internal Change.

What to Look for in a Managed Services Vendor.

Ensuring Vendor Alignment.

Key KPIs to Set for Vendors.

Measuring ROI Improvement.

The Sales Bit.

Reducing Risk with the Infinity Support Suite.

Driving Innovation with the Infinity Support Suite.

Improving ROI with the Infinity Support Suite.

Conclusion.

A Final Word (GenAI for the win). ??

Where Managed Services Fit into Your Operating Plan

Introduction

With over two decades in managed ICT services, I’ve seen first-hand the value this model can bring to businesses. As we move toward what promises to be a more positive period of economic growth, I want to share some insights that might be helpful as you consider how to scale back up after a period of reducing costs to stay competitive.

This perspective is just one of many—there’s no magic solution that works for every business. My goal is to offer ideas that you can adapt as needed: take what you find helpful and leave what doesn’t resonate. Ultimately, I want to support your future growth by helping you explore ways managed services could fit into your operational plan.

While I am, of course, part of the managed service provider ecosystem, my intent is to focus on sharing value with this article. At the same time, I’ll briefly mention Magnetism Solutions Power Platform managed service offerings toward the end for those interested. However, the primary goal is to provide insights into why managed services might be worth considering as you plan for future growth and operational efficiency or to benchmark your current provider. I have included a link to an online assessment tool at the end?to help you benchmark your current service.

Outsource Routine Tasks, Focus on Strategic Value?

Many IT teams are overburdened with routine tasks like system monitoring, bug fixes, and patch management, leaving little time for innovation or value-adding projects. Outsourcing these repetitive tasks allows internal teams to refocus on intellectual property creation, product innovation, and strategic priorities. Rather than spending time managing day-to-day IT operations, staff can engage in activities that drive competitive advantage and business growth. Managed services ensure experts handle these tasks while internal resources are channelled into high-value activities.

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Understanding the Full Cost of In-House Resources?

When comparing the cost of managed services with hiring full-time employees (FTEs), it’s essential to calculate the fully burdened cost of in-house staff. This includes salaries, recruitment, onboarding, ongoing training, and human resource management. Hidden costs—like replacing staff who leave and the time it takes for new hires to reach full productivity—must also be considered. Managed services eliminate these uncertainties by offering fixed, predictable costs, which provide financial stability, improved budget management, and reduced administrative overhead.

Managing Internal Change?

Introducing managed services can sometimes raise staff concerns about job security. It’s essential to manage these concerns by reframing the narrative and communicating the benefits of outsourcing.?

Transparent Communication: Explain how outsourcing routine tasks allows staff to focus on meaningful, high-value work.?

Highlight Career Growth Opportunities: Show employees how they can develop new skills and move into more strategic roles.?

Emphasise Increased Job Satisfaction: Demonstrate how eliminating repetitive work can increase engagement and productivity.

Organisations can foster employee engagement and enthusiasm by positioning outsourcing as an opportunity rather than a threat.

What to look for in a Managed Services Vendor?

Choosing the right managed services vendor requires a thorough evaluation beyond pricing.

Successful partnerships depend on several key factors:?

Cultural Alignment: Ensure the vendor shares your organisational values to foster collaboration and trust.?

Proactive Support: Look for vendors that provide continuous monitoring and issue resolution before problems escalate.?

Scalability: Ensure the vendor’s services can grow and adapt as your organisation evolves.?

Transparency and Reporting: Choose vendors who offer transparent reporting on KPIs, SLAs, and service outcomes.?

Industry Expertise: Vendors with a depth of experience in your technical domain can offer tailored solutions and faster problem resolution, which delivers rapid time to value.?

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Ensuring Vendor Alignment?

Achieving long-term success with a managed services provider requires alignment between the vendor’s operations and your business needs. Here are a few strategies to ensure a seamless partnership:?

Conduct Cultural Fit Assessments early in the selection process to confirm compatibility.?

Maintain Open Communication Channels with dedicated account managers and clear internal "points of contact" to build trust and foster collaboration.?

Establish Clear KPIs and SLAs to track and measure service performance against your business goals.?

Regularly Review Vendor Services to ensure the solution evolves in response to your organisation’s changing needs.?What you signed up for a year ago might not fit your needs now. So, ensure you can "evolve" your outcomes in partnership with the vendor.

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Key KPIs to Set for Vendors?

1. Service Availability and Uptime: Track uptime percentages and adherence to agreed Service Level Agreements (SLAs).

2. Response and Resolution Times: Measure how quickly issues are acknowledged and resolved, ensuring alignment with SLAs.

3. First-Contact Resolution (FCR) Rate: Monitor how often issues are resolved during the initial contact to assess efficiency.

4. Customer Satisfaction (CSAT): Use surveys to evaluate customer feedback on vendor performance.

5. Incident and Problem Management: Track the frequency of recurring issues and time to resolve root causes.

6. Compliance and Security Reporting: Ensure adherence to regulatory and security standards with regular audits.

7. Scalability and Flexibility Metrics: Assess the vendor’s ability to adapt to your organisation’s evolving needs.

8. Innovation Contribution: Monitor how the vendor supports innovation by implementing new features or technologies or providing innovation suggestions during monthly service review meetings.

9. Cost Predictability: Evaluate how well the vendor maintains cost transparency and stays within budget.

10. Reporting and Transparency: Ensure regular, detailed reporting on service performance, including KPIs, trends, and improvement plans.?

These KPIs will help maintain accountability and alignment with your business goals while fostering a strong vendor partnership.

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Measuring ROI Improvement?

Organisations need to track financial and operational metrics to measure the success and ROI of managed services. Key areas to assess include:?

1. Operational Cost Reduction: Compare the savings in IT support and maintenance costs before and after implementing managed services.?

2. Minimising Downtime: Measure the reduction in downtime incidents and their impact on employee productivity and service delivery.?

3. FTE Efficiency: Track how many internal hours are freed from routine tasks, allowing teams to focus on higher-value work.?Also, track what additional organisational value was achieved.

4. Budget Predictability: Evaluate how the fixed-cost model aligns with financial planning and reduces unexpected expenses.?

5. Innovation Output: Monitor the adoption of new features or initiatives enabled by reduced operational constraints.?

6. Employee Productivity & Satisfaction: Use surveys and task completion metrics to assess staff morale and output improvements.?

Conclusion

Incorporating managed services into your operational plan can help organisations optimise their resources, focus on high-value activities, and better position themselves for growth in an improving economic climate. By outsourcing routine tasks, businesses can free internal teams to concentrate on strategic initiatives, product innovation, and core intellectual property.

Understanding the full cost of in-house resources—beyond salaries—is critical when comparing managed services to FTEs. Managed services offer fixed, predictable costs, making budgeting easier and reducing the burden of recruitment, onboarding, and HR management. Clear KPIs and vendor alignment are essential to ensuring services evolve with your organisation’s needs.

Key performance metrics, such as reduced downtime, improved employee productivity, and increased innovation output, are crucial to measuring ROI and demonstrating the value of managed services.

While the decision to outsource can raise concerns among staff, transparent communication and emphasising growth opportunities can help employees see outsourcing as an opportunity rather than a threat. The right vendor will become a trusted partner, offering proactive support, transparency, and scalability to adapt alongside your organisation.

Ultimately, managed services are more than a cost-saving measure—they’re a strategic tool for driving long-term growth, stability, and innovation. Whether you’re scaling up after a period of cost reduction or benchmarking your current approach, managed services provide an adaptable and practical path forward.

The Sales Bit

Reducing Risk with the Infinity Support Suite?

Magnetism Solutions - Your trusted Microsoft Power Platform partner

The Infinity Support Suite minimises risks through proactive monitoring and continuous management, preventing disruptions before they impact operations. Unlimited bug fixes and continuous updates ensure systems remain secure, compliant, and up to date with the latest patches. Seamless migration strategies reduce the risks associated with switching platforms, guaranteeing smooth transitions with zero critical incidents. The fixed-cost model mitigates financial risks by eliminating unexpected expenses?and?ensuring budget certainty.

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Driving Innovation with the Infinity Support Suite?

The Infinity Support Suite enables businesses to innovate without operational constraints. Proactive management, unlimited bug fixes, and continuous updates keep systems stable and ready for new challenges. The fixed-cost model ensures that financial resources are not diverted into reactive maintenance, freeing time and capital for strategic projects. Seamless migrations allow new tools and features to be adopted quickly, creating an environment where continuous improvement and innovation thrive without operational disruptions.

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Improving ROI with the Infinity Support Suite?

The Infinity Support Suite helps organisations maximise ROI by addressing inefficiencies, reducing downtime, and controlling operational costs. Proactive issue resolution ensures that problems are identified and resolved quickly, while unlimited bug fixes and continuous updates guarantee system stability without additional expenses. The fixed-cost model provides financial predictability, allowing businesses to allocate resources confidently. With internal teams relieved of routine maintenance, they can focus on strategic initiatives that drive long-term business value and innovation.

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Infinity Support Suite in Summary?

The Infinity Support Suite highlights the power of managed services by delivering proactive, scalable support tailored to meet evolving business needs. With a solution that minimises risks, drives continuous improvement, and provides measurable returns, businesses can stay ahead in today’s competitive landscape.

As mentioned earlier, here is a link to a no obligation; we won't spam you I promise, online assessment tool that looks at some of the topics I’ve discussed here to help you benchmark your current service. Managed Services ROI calculator

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A Final Word

I’ll be transparent—I used GenAI to help generate this article and the cover image, but the thoughts and ideas are entirely mine. The process took about the same amount of time (maybe a bit faster) than writing it from scratch, but GenAI was most helpful in organising my thoughts into a cohesive document. If you’ve ever faced a blank screen wondering where to start, you’ll understand the benefit of how GenAI helped me jump-start the creative process by being able to jot down all my random thoughts and begin from an organised document.

If you’d like to discuss Managed Services or explore how AI can support your document creation with targeted prompt engineering, please connect with me on LinkedIn. I’d be happy to meet for a no-obligation coffee and chat about improving operations, better serving our organisations, and becoming more productive with the better use of GenAI.

I’d love to hear what you think and what you’ve discovered on your operational journey.