How managed IT service providers can increase profitability

July 26, 2018

Business owners and decision makers are always looking at ways they can increase profitability. Typically, traditional ideas reflect customer service enhancements, new business opportunities, and potential product initiatives. However, something to consider is the importance of business technology as it improves operations which increases profitability. One of the highest costs of implementing and maintaining these technologies is labour. So, one simple way you can increase profit margins is simply by outsourcing IT.


By outsourcing IT, companies can:


Increase Efficiency


Automation and time management are essential functions of all modern businesses, these are ways in which companies can optimise the amount of money they make. A Managed IT provider, like Logixal, will ensure that all of your systems and staff are organised to increase efficiency with constant monitoring and updating of technologies within the business. According to CompTIA's annualTrends in Managed Services study, improving efficiency and reliability is the main driving factor for business to choose a MSP for 56% of companes with more than 100 employees 47% of companies with fewer than 100 employees. 


Increased Productivity


When computer start-up and loading times are slow and internet connection is poos, productivity levels are limited by the technology. Time wasted on issues that can be prevented through appropriate IT support. Businesses productivity should not be affected by under performing technology. This reduces revenue over time and can be prevented by partnering with a reliable provide to improve productivity. 


Reduced Costs


A major contributing factor to increase profitability is reducing the overall expenses within the business by outsourcing IT operations. CompTIA found Return on Investment and cost reduction was a driving factor for using an MSP for nearly 30% of all companies questioned.  


This money can be reinvested into marketing, sales, business development and other profit generating teams within the company. Outsourcing IT also allows you to budget for the year based on a fixed monthly fee rather than unpredictable technology expenses if you pay as you go. 


Enhanced Focus


Staying focused on core business is difficult when you have to deal with the problem of technology management as well. Although businesses may hire competent staff, leaders must still be involved in the strategy and coordination of technical management. Outsourcing IT stops this responsibility, enabling leaders to remain focused on business growth. Removing unnecessary issues will drive more profit. 


Improved Customer Services


One of the most frustrating aspects of any job can often be down to technical difficulties, and those frustrations can be passed onto customers. Some examples of these can be an unplanned downtime, cyber attacks, and slow internet. A managed IT provider can eradicate these issues. 


By introducing a managed IT service, decision makers can have peace of mind knowing they can rely on their technological infrastructure without the concerns of major problems. Which in turn will stop the possibility of passing poor experiences for customers.  


Logixal is a managed IT provider that connects businesses throughout the UK by combining a comprehensive set of IT support services and a breadth of expertise to deliver high impact solutions focused on improving business performance.

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