Managed Services Help Firms Expand Core Competencies

Managed ServicesToday's businesses can only become truly successful if they operate at peak efficiency in almost every particular.  Margins of error must be small or even nonexistent in an economic climate fiercely driven by the pressures of globalization and the need to make every dollar count. 

This can be problematic for many firms because their best skills probably revolve around the specialty product they offer.  A business that makes money by selling hydroelectric power equipment to small, rural producers, for example, probably excels at that task and would define its talents as manufacturing, design, and promotion.  The same firm may not have equal capacity to carry out cyber security and warehousing without incident.

Managed Services Provide a Solution

Firms do not have to operate on their own now, however.  With communications at a peak thanks to the Internet, firms can outsource many of their operations to managed service providers who have the expertise to administer programs remotely.  According to Michelle Benjamin, who serves as president and CEO of a managed services provider, "In the Managed Services business model, the customer outsources...many processes and functions which are not essential to its core competency.  In doing so, the customer can redirect key internal resources, achieve operational cost reduction benefits, and better focus on its core competency."

Common tasks accomplished by managed service providers include things like network security, reporting, data backup, and the coordination of IT services so that businesses can seamlessly integrate them into their daily operations and run more efficiently.

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