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Buildabusinesscasefora
technologyMSPIN8STEPS
INSIGHTSANDTIPSFORITDECISIONMAKERS
Thebusinesscasefor anMSP
MSPs are not your typical outsourcing provider.
They are a strategic sourcing option. MSPs bring skills,
transformation, and a platform for innovation.
But many organisations miss out on even engaging with an
MSP, as they fail to build a business case for the long-term
partnership that comes with this type of strategic engagement.
WHATWE’LLCOVER
1. What is a Technology MSP?
2. The IT service delivery mix: In-
house, outsourcing, cloud & MSP
3. MSPs vs. outsourcing: The key
differences
4. How to build a business case for
an MSP
WhatisanMSP?
• A Managed Service Provider (MSP) is an IT delivery
company which builds and maintains specialist practices.
E.g. Security, cloud integration and disaster recovery.
• An MSP engagement is typically “as-a-Service” with an
operating cost (OPEX) model. MSPs can also do project
work if required.
WhatisanMSP?(CONT.)
• An MSP engagement allows the
business to be transformative and
innovative.
• With an MSP, internal IT teams
are less encumbered by
operational requirements.
In-house IT: Bridges gap between IT and business;
best for “caring” about the business; challenged by
operations, specialist skills and capital required to
compete at scale.
In-house IT:
Bridges gap between IT and business; best for
“caring” about the business; challenged by
operations, specialist skills and capital required
to compete at scale.
MSPs:
Help businesses transform by taking on select
IT services – from mobile to cloud. Best for
bridging the gap between operational
requirements and business outcomes.
Cloud:
Quickly delivers point solutions for infrastructure
and applications. Still needs to be managed by
staff or service providers.
ITservicedeliverymix
TheITservicedeliverymix
IT outsourcing:
Large engagements that “take over” a requirement
or even entire IT team; dogged by lack of agility or
measurable outcomes; market has largely moved
to selective sourcing and MSPs.
MSPsvs.outsourcing
MSPs Outsourcing
Focus on market-leading areas of expertise Offer a range of services, like in-house IT
Good accountability Poor accountability
Less “long chain” of resources or sub-contractors Can have “long chain” of sub-contractors
Projects and ITaaS Focus on projects
Allows business to focus on strategic programs Restricts focus on strategic programs
Fast-growing, favoured engagement model Declining, less favoured engagement model
Low risk, less lock-in High risk (e.g. “Census fails”)
BuildingabusinesscaseforanMSP-in8steps
1.
Identify the
challenges
2.
Assess the
best
delivery
option
3.
Estimate
the
immediate
benefits
4.
Plant the
seed with
key internal
stakeholders
5.
Talk
up
opportunities
6.
Present the
business
case
7.
Develop a
brief
approach to
an MSP
8.
Assess
your MSP
vendor
HowtoexecuteSTEPS1-4
Step How to Execute
1. Identify the
challenges
• What are the pain points the business is experiencing with IT?
• These could be with in-house staff or an existing sourcing engagement.
2. Assess the best
delivery Option
• Match the problem areas with the best IT delivery option.
• Generally, higher strategy = in-house; more operating = third-party. MSPs bridge
strategy and operations.
3. Estimate the
immediate benefits
• How will the MSP deliver a better outcome? List the benefits.
• Be as specific with the benefits as you can be, avoid vague or uncertain benefits
4. Plant the seed with
key internal
stakeholders
• Talk about the business case for an MSP.
• Why an MSP engagement is not like traditional outsourcing.
HowtoexecuteSTEPS5- 8
Step How to Execute
5. Talk up opportunities
• The business case is not all about cost reduction or service delivery improvements.
• Think of the ways the business will benefit by being able to transform and develop
new products and services.
• MSP engagements should be viewed as strategic for growth and change
preparedness.
6. Present the business
case
• Identify the change requirements and ROI to the business.
• Be interactive and collect feedback and opportunities to improve the business case.
7. Develop a brief
approach to an MSP
• Decide who will work with the MSP, ensure the new architecture is communicated
well internally.
8. Assess your MSP
vendor
• Once engaged, develop a process for measuring outcomes.
We’reTecala.it’sNiceConnectingwithyou
We’re Tecala, the Australian tech services provider to
progressive companies.
As your strategic IT partner, we make leading-edge technologies
and services accessible – helping you scale faster.
Our purpose is to create enduring client partnerships where we
navigate technology to deliver brilliant client outcomes.
@Tecala_Group
Subscribe for tech news:
http://go.tecala.com.au/subscribe.html
Email us: hello@tecala.com.au
Visit us: www.tecala.me
Call Tecala: 1300 TECALA (832252)
@TecalaGroup
GoodConversationsStartWithHello!

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Build a business case for a technology msp in 8 steps a tecala presentation.pptx

  • 2. Thebusinesscasefor anMSP MSPs are not your typical outsourcing provider. They are a strategic sourcing option. MSPs bring skills, transformation, and a platform for innovation. But many organisations miss out on even engaging with an MSP, as they fail to build a business case for the long-term partnership that comes with this type of strategic engagement.
  • 3. WHATWE’LLCOVER 1. What is a Technology MSP? 2. The IT service delivery mix: In- house, outsourcing, cloud & MSP 3. MSPs vs. outsourcing: The key differences 4. How to build a business case for an MSP
  • 4. WhatisanMSP? • A Managed Service Provider (MSP) is an IT delivery company which builds and maintains specialist practices. E.g. Security, cloud integration and disaster recovery. • An MSP engagement is typically “as-a-Service” with an operating cost (OPEX) model. MSPs can also do project work if required.
  • 5. WhatisanMSP?(CONT.) • An MSP engagement allows the business to be transformative and innovative. • With an MSP, internal IT teams are less encumbered by operational requirements.
  • 6. In-house IT: Bridges gap between IT and business; best for “caring” about the business; challenged by operations, specialist skills and capital required to compete at scale. In-house IT: Bridges gap between IT and business; best for “caring” about the business; challenged by operations, specialist skills and capital required to compete at scale. MSPs: Help businesses transform by taking on select IT services – from mobile to cloud. Best for bridging the gap between operational requirements and business outcomes. Cloud: Quickly delivers point solutions for infrastructure and applications. Still needs to be managed by staff or service providers. ITservicedeliverymix TheITservicedeliverymix IT outsourcing: Large engagements that “take over” a requirement or even entire IT team; dogged by lack of agility or measurable outcomes; market has largely moved to selective sourcing and MSPs.
  • 7. MSPsvs.outsourcing MSPs Outsourcing Focus on market-leading areas of expertise Offer a range of services, like in-house IT Good accountability Poor accountability Less “long chain” of resources or sub-contractors Can have “long chain” of sub-contractors Projects and ITaaS Focus on projects Allows business to focus on strategic programs Restricts focus on strategic programs Fast-growing, favoured engagement model Declining, less favoured engagement model Low risk, less lock-in High risk (e.g. “Census fails”)
  • 8. BuildingabusinesscaseforanMSP-in8steps 1. Identify the challenges 2. Assess the best delivery option 3. Estimate the immediate benefits 4. Plant the seed with key internal stakeholders 5. Talk up opportunities 6. Present the business case 7. Develop a brief approach to an MSP 8. Assess your MSP vendor
  • 9. HowtoexecuteSTEPS1-4 Step How to Execute 1. Identify the challenges • What are the pain points the business is experiencing with IT? • These could be with in-house staff or an existing sourcing engagement. 2. Assess the best delivery Option • Match the problem areas with the best IT delivery option. • Generally, higher strategy = in-house; more operating = third-party. MSPs bridge strategy and operations. 3. Estimate the immediate benefits • How will the MSP deliver a better outcome? List the benefits. • Be as specific with the benefits as you can be, avoid vague or uncertain benefits 4. Plant the seed with key internal stakeholders • Talk about the business case for an MSP. • Why an MSP engagement is not like traditional outsourcing.
  • 10. HowtoexecuteSTEPS5- 8 Step How to Execute 5. Talk up opportunities • The business case is not all about cost reduction or service delivery improvements. • Think of the ways the business will benefit by being able to transform and develop new products and services. • MSP engagements should be viewed as strategic for growth and change preparedness. 6. Present the business case • Identify the change requirements and ROI to the business. • Be interactive and collect feedback and opportunities to improve the business case. 7. Develop a brief approach to an MSP • Decide who will work with the MSP, ensure the new architecture is communicated well internally. 8. Assess your MSP vendor • Once engaged, develop a process for measuring outcomes.
  • 11. We’reTecala.it’sNiceConnectingwithyou We’re Tecala, the Australian tech services provider to progressive companies. As your strategic IT partner, we make leading-edge technologies and services accessible – helping you scale faster. Our purpose is to create enduring client partnerships where we navigate technology to deliver brilliant client outcomes.
  • 12. @Tecala_Group Subscribe for tech news: http://go.tecala.com.au/subscribe.html Email us: hello@tecala.com.au Visit us: www.tecala.me Call Tecala: 1300 TECALA (832252) @TecalaGroup GoodConversationsStartWithHello!