What Are Managed IT Services? When Is It Time to Switch?

As your business grows, it’s natural to focus all of your energy on increasing revenue, growing your team, and creating a great customer experience. Unfortunately, doing so can cause that machine running things behind the scenes to be forgotten or neglected, which can be a costly mistake, leaving your business vulnerable to losing millions of dollars—according to IBM’s data breach report from 2024. 

Yet, for many small to medium-sized businesses (SMBs), ballooning IT costs and scalability issues can make it difficult to secure the IT support they need. That’s why many small business owners turn to outsourced IT or managed IT services to improve their security and control IT costs.

If you are not familiar with managed IT services and the benefits they can provide to small businesses, you may wonder if outsourcing IT is the right move. To help you make this decision, further down we’ve listed the seven signs that it is time for you to partner with a managed service provider (MSP). But first, let’s learn a bit more about what managed IT services are.

What Are Managed IT Services?

Managed IT services involve outsourcing your company’s IT management and support to a specialized provider. Instead of handling your tech issues internally, managed IT services utilize a team of experts to manage and support your business’s IT infrastructure. This includes tasks like maintaining networks, securing data, updating software, and providing technical support.

Managed IT services exist to make sure your technology runs smoothly so you can focus on your core business activities, rather than just trying to keep your infrastructure afloat. With managed IT services, you have a reliable partner by your side to assist in handling the complexities of IT and making sure everything works securely and efficiently. They make sure your tech works without interruption so you and your team have the support in place to keep your operations running.

What’s Included in Managed IT Services?

Managed IT services cover a wide range of tasks to keep your technology in top shape. Here’s some of the types of managed IT services you can typically expect.

• Network Management: Keeps an eye on your network to make sure everything runs smoothly and stays connected.
• Cybersecurity: Protects your systems from threats like malware and data breaches, so your information stays safe.
• Data Backup and Recovery: Regularly backs up your data and develops a plan to recover it if something goes wrong.
• Helpdesk Support: Provides support to troubleshoot and fix IT issues whenever they come up.
• Software Management: Makes sure your software is always up-to-date with the latest updates and patches.
• Cloud Services: Manages your cloud infrastructure and services to get the best performance and value.
• Hardware Support: Takes care of your physical IT equipment, like servers, computers, and other devices.
• IT Consulting: Offers advice and planning to ensure your IT strategy aligns with your business goals.

What Are the Benefits of Managed IT Services?

Managed IT services offer several key benefits that can make a big difference for your business:

• Expert Support: You get access to a team of IT experts who stay up-to-date with the latest technology and best practices.
• Proactive Maintenance: Regular monitoring and maintenance help prevent problems before they disrupt your business.
• Enhanced Security: Managed IT services include strong security measures to protect your data and systems from threats.
• Scalability: As your business grows, your IT services can easily scale up to meet your needs without the hassle of hiring and training new staff.
• Focus on Core Business: With IT taken care of, you can focus on what you do best, whether that’s serving customers, developing products, or growing your business.
• Reliable Support: If something goes wrong, you have a dedicated team ready to fix it quickly, minimizing downtime.
• Strategic Planning: Managed service providers offer strategic advice to help you plan for future IT needs and align technology with your business goals.

How Much Do Managed IT Services Cost?

The truth is, the cost of managed services pricing can vary from provider to provider. A 50-person company might pay $50 per user to an MSP or $300 per user for the same 50 people. 

Why?

Well, it depends on a few factors, including:

• Pricing Model: Does the MSP charge per device, per user, or is it tiered pricing?
• Number of Employees and Users: If a company has more users, that means more devices and user accounts for an MSP to manage and secure, leading to a higher cost.
• Number of Devices: More devices, more complexity. More complexity, the more of an investment your IT is going to be.
• Number of Locations: The more buildings a company has, the more devices, servers, employees, etc. they have, ultimately leading to a higher cost for service.
• Remote vs On-Site Team Members: Having employees who work remotely further adds complexity to a business’s network and cybersecurity, increasing the cost of IT.
• Co-Managed or Fully Managed: Managed services pricing will change depending on if you want an extra boost to your IT team or whether you’re looking to take IT completely external.
• Data Backup and Storage: Based on how much data you need stored and how effective an MSP’s data storage and protection technology is, managed services pricing will vary. 

If you’re curious about what your investment would be to begin working with Ripple, we have our Pricing Calculator to help you get an initial estimate. 

When Is It Time to Get Managed IT Services?

There are many ways to know when it’s time to switch your MSP. Here are a few.    

Limited IT Budget or Unpredictable IT Costs

Managing an in-house IT department can be extremely expensive. As you continue to expand your business, you may find that IT expenses can get out of control and vary greatly from one month to the next. Fortunately, partnering with an MSP can help you control your IT costs.

Rather than having to hire, train, and maintain an in-house IT team, partnering with an MSP allows you to pay for the IT services you need, as you need them. This can be a relief for small businesses with a limited IT budget and can help them better predict and budget for their IT expenses each month.

Additionally, since the costs of hiring, onboarding, and maintaining IT personnel are spread across the MSPs' customers, IT services provided through an MSP are often much more affordable than an in-house IT department, helping you to scale back ballooning IT costs. 

You Can’t Keep Up With Growing IT Demand

Another clear sign that you should consider outsourcing your company's IT needs is if you struggle to scale your IT department and meet your company's growing needs. For rapidly growing businesses, it can be extremely difficult to keep up with IT demands, as it is impossible to expand an IT department overnight. In fact, you may find that each time you hire new personnel and expand infrastructure, demand is already outpacing your IT department's capacity. This is where it can be extremely beneficial to partner with a managed service provider.

When you work with an MSP, it's much easier to scale your IT services to meet your company's ever-changing needs. MSPs have the resources to meet demand changes quickly.

You're Experiencing Frequent Downtime

A clear sign that your IT department is not keeping up with demand is if you are experiencing frequent network downtime. Downtime can be a sign that your current IT strategy is insufficient or failing. It can also be costly; the average cost of network downtime is $5,600 per minute. Also, frequent downtime can negatively impact your credibility, further impacting your business’s image.

If you are experiencing network downtime regularly, it's probably time to switch to outsourced managed IT services. An MSP can scale services to meet your needs. They’ll come up with a plan to restructure your IT strategy so it’s streamlined and efficient.

You Want to Work With Experienced IT Professionals

For SMBs, recruiting top talent can be one of the most difficult aspects of maintaining an in-house IT department; 65% of SMBs claim they struggle to attract and retain top talent. While finding experienced, qualified IT personnel is essential in ensuring your business's continued security and productivity, it can be difficult for many small businesses who aren’t technology-focused to attract the right personnel.

MSPs, however, have the resources and experience to scout out top talent. Plus, they can provide continuous training to ensure their IT personnel are aligned with the latest industry advancements. When you work with an MSP, you can rest assured that you’re getting the best IT services for your money, as MSPs only work with the most experienced IT professionals. 

You Want to Stay on Top of The Latest Advancements

One of the most frustrating things about maintaining an in-house IT department is how fast things move in the IT industry. However, staying on top of the latest technology is critical to staying productive and protected from the latest cyber threats. Often, SMBs don't invest time and money to research and acclimate to the latest advancements in IT. And, in recent years, SMBs are decreasing their tech spending overall. 

However, MSPs can help you stay on top of the latest technology with resources to research, develop, and implement new strategies that improve efficiency and cyber defenses—without an insane price tag. You'll feel confident that you have access to the latest technology and security strategies to boost productivity, minimize downtime, and maximize security.

Your Focus is In The Wrong Place

As a business owner, your primary focus should be on growing and expanding your business. But, if you’re trying to maintain an in-house IT department, your focus might be geared toward keeping up with IT demands instead. You’re not only worried about staffing your IT department, but you may also find yourself spending more time putting out fires than putting in work on your core business. 

An experienced Managed IT Service Provider will have more than enough resources to handle your company's IT needs, allowing you and your staff to focus all of your attention on growing your business. If you continually find your focus being diverted to IT problems, it may be time to consider outsourcing to an MSP. 

You Want Peace of Mind

Perhaps the greatest benefit of working with a managed service provider is peace of mind. 

For many small business owners, trying to keep up with growing IT demands and managing an in-house IT department can become increasingly costly, time-consuming, and stressful. With a limited IT budget, you will likely find yourself wasting precious time working on IT tasks. With limited resources, you may find yourself constantly worrying about whether or not you’re doing enough to protect your company and keep it running.

Outsourcing your company's IT needs can lift a significant weight off of your shoulders. With an MSP, your needs will be looked after by experts in your field and you’ll receive superior IT services at an affordable price that’ll help your business continue to grow.

At Ripple, we know that it can be difficult to know what the right options are for your business. Book some time with our team for a free 30-minute consult and learn if managed IT services are right for your company.