What is the big question you need to answer before hiring a Managed Services Provider?

“Can they implement a technical strategy that supports our business goals and objectives?”

Before EDS (Electronic Data Systems) was acquired by Chrysler in 1984, it once provided whole-company, and for some non-US governments: whole Country IT support. That was the era when IT-Organizations dictated what kind and how many compute services a company was going to receive. Modern IT Ops has become more collaborative in identifying the best-fit services; and now CIOs focus on fulfilling the strategic needs of their company, and ensure a return on the IT investment;

So do smart Managed Services Providers (MSPs)

So what happens if your IT work is outsourced to an MSP? There are many good things but strategy can be the very best.

First ask yourself: will the MSP work closely with you to receive and understand the strategic plans of the company; can they articulate and execute a plan to deliver services that support that strategy; are they an established company with experience in IT-Ops? Most MSP’s are great technical hands, but haven’t had to implement an IT operational plan that supported the business strategy.

ProxyIT helps IT groups, by providing structural and procedural frameworks that align their services with the company’s goals. If you don’t run your own IT department, or don’t have a CIO, consider a contract-CIO, to manage strategy and direct the MSP(s) on execution. If you don’t know where to start: ProxyIT will tell you if your strategy needs are beyond our scope, and will help you get the right support.

We frequently partner with “The Office of the CIO” (Dean Lane is the Founder at www.oocio.com .) Working together, ProxyIT and Office of the CIO, provide our clients strategic, and tactical, IT support plans. Together we’ve helped companies get more value from IT-Ops, sometimes help them to down size IT- Ops, or have helped them to re-set and restart whole organizations. We’ve also defined, setup, recruited teams, and handed over fully established IT departments created and specifically tuned for the company’s needs.

Ten years of collaboration on strategic support for businesses has given us keen insights into transforming IT-Ops into a “value-center”.

Call me to have a conversation on how we can improve your business from the IT strategy.

John Bosch

CEO, ProxyIT Inc.

650-207-3204

The Financials of Managed Services

Stay with in-house IT or outsource to an external provider?
Read on to see why you should consider an external provider. Our client had a single senior engineer handling DevOps and Production Ops. There was a maintenance backlog. Production outages kept the engineer busy so development was throttled. The company was contemplating adding another engineer when ProxyIT was introduced. Our challenge was to stabilize IT Operations. Even at a projected staffing cost of more than $300K, cost was the second priority. How were we able to achieve these cost savings for our client? The illustration below tells our story and shows the cost savings that accrued.

Chart

Initially ProxyIT dedicated significant resources to the engagement to bring projects and tasks under control. We used the combined attention of several of our staff; costs increased. But decreasing the maintenance backlog was critical to restoring production availability, and while our initial cost was higher than forecast, the production availability improved almost immediately.
At the 4 month mark the ProxyIT costs approximated the cost of a single senior engineer’s salary.

Once the systems were stable, our project manager took over scheduling of task and project work. This improved the release of new products, further improving stability
At 8 months, our cost dropped below the salary of a senior engineer
Working to standard operating procedures and performing regular maintenance reduced man hours lost to outages and recovery.

At 16 months our cost dropped to less than half the salary of a senior engineer.
The ability to apply man hours only when required (in an increasingly stable environment) allowed us to provide the same service at a much lower cost and quicker responses time than a dedicated internal team could manage.

Can we do this for you? Call and we can discuss it!