Tuesday, March 11, 2014

Important Facts Regarding Managed Services

Important Facts Regarding Managed Services

By Bob Piercy


The term managed services is used when referencing outsourcing. To be more specific, the outsourcing on daily management responsibilities and functions. This practice is one of strategy that is done with the intent to cut expenses and improve overall operations.

The process might involved outsourcing human relations activities, lifecycle build and maintenance activities, and production support. An organization or person that owns or is given direct oversight of the system or organization that is being managed is given the title of customer, client or offeror. The organization or person accepting and providing the service is considered the MSP or service provider.

An offeror is usually in charge of performance and functionality of this service. They maintain responsibility and control of management, as this is not relinquished with the practice. Some of the most common duties handled in this manner: management of supply chain, water, power, media, applications, information, communication, integration between businesses, databases and postage.

The MSP is usually an IT provider or information technology services provider. Said person manages and maintains responsibility for offering a certain set of services to the clients in a proactive manner or based on what he or she believes is necessary. Most of these will bill upfront or include a transaction fee, as well as a near-fixed fee per month or a flat rate that is ongoing. This is beneficial for the client in that it guarantees support costs remain predictable.

In some instances, these providers are contracted in order to manage multiple staffing agencies and to measure total effectiveness in filling the positions relative to the requirements and standards of the customer. Essentially, these professionals serve as a neutral party the provides its client with a whole workforce solution while guaranteeing operation and leveraging multiple staffing agencies in order to obtain the most competitive rates.

In such cases, MSPs will typically employ a Vendor Management System or VMS. This is a software that offers both efficiency and transparency in all areas of the workforce. This particular practice has proven to be an effective tool in private sectors, specifically Fortune 500 companies. Furthermore, it is predicted to become more prevalent in government agencies. MSPs are known to use a special kind of software called RMM or Remote Monitoring and Management. This is a tool for deploying and controlling the assistance given to clients.

The business model involved with this process has been used among enterprise-level companies for some time. It has also been changed to best first companies that are small or medium in size. The model itself can be extremely beneficial to these enterprises that will evolve and grow with time.

There are many groups that offer the full spectrum of services to help in relieving staff members of daily duties and operations within an infrastructure. Providers may allow clients to pick and choose what they need, customizing their order. This process is known to be a cost-effective option in many different industries and allows companies to free up resources and staff to focus on strategic plans within the organization. There are many potential benefits to this practice that will vary based on many factors.




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