Your challenge is to design an IT resource strategy that ensures you leverage strategic partner capabilities, whilst also fostering the appropriate IT skills in-house for your growing business-as-usual and innovation demands. You cannot do everything on your own, nor do you have to. Have you considered partnering with an MSP?
MSPs are a strategic sourcing option, who bring expert skills, transformation, and platforms for innovation. However, many organisations miss out on getting the most out of their MSP investment, as they fail to build the business case for the long-term partnership that is required for this type of strategic engagement.
Whether you are already engaging with an MSP or are looking to deploy the services of an MSP, we have created a slideshare with the 8 steps for building a business case for an MSP to join your IT resourcing mix. Download and view this guide for your next IT strategy exercise.
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”)
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.