The market for managed IT services has ballooned in recent years, with some estimates indicating the sector's value will exceed 500 billion dollars by 2028.
As the industry grows, so do its capabilities. With rapid technological advancements impacting the sector, the managed services landscape looks immeasurably different to years ago.
In this article we take a fresh look at managed IT services, as they stand today - with a focus on the trends and practices driving the sector forward.
We'll discuss:
-
What are managed IT services? And how do they enhance businesses?
-
What do effective managed IT services look like in 2024?
-
What are the top trends in managed IT services this year?
-
How should teams evaluate managed IT services in the modern age?
-
Managed IT services versus in-house function: diving into the debate
Let's start at the beginning...
What are managed IT services?
In simple terms, managed IT services allow businesses to outsource their IT needs. This can range from service desk support to complex infrastructure monitoring and maintenance.
How do they enhance businesses?
The modern business relies on tech, it's maintenance, evolution, monitoring, and more. As technology ecosystems increase in complexity, so too can the resource burden of keeping the lights "on" so to speak.
These ecosystems can demand specialised skillsets, resource-intensive maintenance, and a lofty budget to keep up with overheads. While there are benefits to managing your tech "in-house" (something we'll get to later), many opt for outsourced management.
By bringing in external experts, businesses generally benefit from:
-
Specialised expertise, without the cost burden of a full-time team.
-
Broader scope of skillsets - that evolve as technology advances.
-
For certain services, 24/7 support, which reduces downtime.
-
Proactive maintenance, that predicts potential issues and rectifies them before they can become costly.
-
Cyber-security informed strategies, that continuously strengthen to stave off cyber threats.
-
Data protection and privacy-informed frameworks, to mitigate key risks and prevent breaches.
-
Predictable, cost-effective solutions that balance quality with manageable outgoings
What key features define effective managed IT services in 2024?
While the history of managed IT services dates back to the 1990s, what constitutes "good" has dramatically changed over the years. Today, these services need to be iterative, proactive, and continuously evolving to keep at the edge of tech. Below we address some of the defining features of effective IT services today.
-
AI-ready approach: For the few years it's had, we'd be remiss not to mention AI. In fact, 77% of companies today state that they are either using or exploring the use of AI within their business. With the ability to automate monotonous tasks, accelerate project management, and cut down on human error - AI has quickly become a competitive edge for companies seeking to streamline their operations. In the context of managed IT services, this is now looking like proactive problem detection, resolution, and where opportunities arise - the optimisation of operations. A strong managed IT services provider will have an up-to-date understanding as to how businesses can leverage AI, and, will have the toolkit required to implement these shifts.
-
Cyber-security informed frameworks: In the UK, 22% of businesses experienced a cyber crime in 2024. On a global scale, the costs of these crimes are eye-watering, with some estimates indicating costs will reach $9.5 trillion USD this year alone. For businesses with technical infrastructure (ie: all businesses!), a cyber-first strategy is not just wise - it's imperative. The best of the best-managed IT services will prioritise airtight security protocols, continuous monitoring, incident response plans and more.
-
Scalability: Tech moves fast, and if your ecosystem is not equipped to respond, you'll quickly be swimming in outdated legacy systems that make the day-to-day almost impossible. A forward-thinking managed services provider will work with you to ensure your ecosystem places scalability, flexibility, and integration as a top priority. This point has only become more and more important with each year - with the plug-and-play capacity of a tech environment often indicating how quickly a business can move.
-
Cloud-first approach: The advent of the cloud was revolutionary for countless sectors, and today, managed IT services providers rely heavily on its capabilities to meet customer needs. Your managed IT services provider should have an intimate understanding of your company's cloud needs, sophisticated offerings (including hybrid and multi-cloud environments where applicable), and have the technical faculties to set you up to succeed.
-
Bespoke offerings: Outsourcing IT needs can be a pretty big gamble - and with the wrong provider, companies can experience a deterioration in service that frustrates everyone involved. Today, the hallmark of a worthwhile managed IT services provider is a bespoke approach, that tailors solutions to your company's unique issues.
What are the top trends in managed IT services for 2024?
We've looked at what "good" looks like in 2024... but what are the key trends driving this sector forward? Below we explore some of the shifts happening in managed IT services, and what this means for those who opt to outsource.
Acceleration of artificial intelligence
AI and machine learning advances have well and truly dominated the headlines in recent years, and their impact is set to be monumental on managed IT services. From automated support solutions to predictive maintenance, firms are now exploring how AI can equip customers with better, faster, and more cost-effective support.
Rise of remote work
During and following the COVID-19 pandemic, the norms of the working world were flipped on their head. Today, 14% of workers are fully remote, with 26% having a hybrid model. Modern IT services providers have had to adapt to this shift away from the office, by offering support for distributed teams. This includes remote first infrastructure and IT tooling that fosters collaboration.
Threat of cyber security breaches
Cyber threats are becoming increasingly sophisticated, with an estimated 22% of businesses experiencing cybercrime in 2024. For today's MSPs, building cyber-aware IT ecosystems has become crucial, with the sector as a whole having to evolve against the advances of cybercrime. This has driven enhanced security protocols across the industry, in addition to innovative means of real-time threat monitoring.
Eco-first managed IT services
Finally, sustainable IT practices are becoming increasingly important in the corporate world. In 2022, 58.5 % of EU enterprises stated they would consider the environmental impact when choosing IT services or IT equipment, with that figure continuously rising throughout 2023 and 2024.
Today, managed IT providers are addressing energy-efficient data centres, environmentally friendly practices, and green tech solutions for customers.
What criteria should senior leaders use to evaluate managed IT service providers?
As a booming market, there are scores of managed IT service providers to choose from. So how do you in 2024 separate best, from worst?
-
Scrutinise the service level agreements (SLAs): Your MSP (managed service provider) will (or should!) provide an SLA that covers response times, uptime guarantees, service commitments, and more. Go through this with a fine-toothed comb, as a strong MSP will place accountability at the heart of their SLA.
-
Reputation and expertise: Credibility is key when it comes to choosing a MSP from probing the depth and breadth of technical expertise, to the experience of an MSP's customers. Take the time to explore case studies and testimonials, and prioritise teams that have earned, and kept customer trust.
-
Compliant-first approach: Your IT ecosystem will need to consider data protection regulations, privacy risks, cyber threats, and more. Your provider should not only be able to build you a performant tech ecosystem - but they should also help you to build in strategy safety. Make sure your provider is committed to staying on top of regulatory shifts - and knows how to balance innovation with compliance.
-
Scalability and flexibility: Your tech can either accelerate progress or slow you down - and your IT provider should understand the opportunities available to keep your business agile. Try to steer towards firms that prioritise performance, with long-term thinking.
Why should businesses choose managed IT services over in-house IT solutions?
Should you enlist the help of a managed IT services provider? Or should you keep operations in-house?
It's a debate that's waged in countless companies, with a number of pros and cons for each.
To start, let's look at the cons of working with a managed IT services provider:
-
Loss of control over IT functions: Many companies opt to keep things in-house, for fear their IT functions will deteriorate. While a strong MSP will strengthen, rather than weaken your ecosystem - the risk remains that a less performant MSP could wreak havoc within your business.
-
Communication misfires: With MSPs, your IT team are external, which can sometimes lead to delays in communication - or worse - misunderstandings. If choosing an MSP, make sure quality and responsiveness are top of mind to avoid this.
-
Up-front costs: While MSPs are more cost-effective than in-house operations in the long run, they can come with initial fees that can be difficult to stomach. Make sure you weigh up expenses, with potential savings down the line.
Below, we've put together some of the core benefits of working with a managed IT services provider:
-
Cost-saving: Companies can leverage the expertise and experience of a dedicated IT team without the overhead costs associated with maintaining an internal department. This includes savings on salaries, benefits, training, and infrastructure, enabling businesses to allocate resources more efficiently.
-
Scalability: Whether your business is expanding or facing seasonal fluctuations, an MSP can easily scale services to align with your current needs. This adaptability means you only pay for what you use, making it a cost-effective approach compared to the rigid structure of an in-house team.
-
Maintenance and monitoring: Rather than reacting to IT issues as they arise, managed services employ continuous monitoring and advanced analytics to identify potential problems before they impact operations. This proactive stance minimizes downtime and enhances overall business continuity, as part of the package.
-
Renewed focus: Without the distraction of IT management, senior leaders and their teams can dedicate their time and energy to strategic initiatives that drive growth and innovation. This focus can be a game-changer, allowing companies to stay competitive and agile in their respective industries.
Managed IT service provider for creative technology companies
Lyon Tech equips scaling tech companies with a certified engineering team and a depth of specialist knowledge through its managed IT services packages. Trusted by countless London-based businesses, the company has earned its reputation thanks to its highly qualified staff, 24x7 availability, IT strategy, IT budgeting, day-to-day remote help and onsite IT Support.
Interested in exploring how modern managed IT services could benefit you today? Get in touch to see how we can help.
