Posted by Derek Epps, Senior Account Executive of Managed Services

Outsourcing IT services is not a new concept by any means. The concept was introduced well over 20 years ago, and became increasingly more popular in the early 2000’s and into today. As of 2008 it was estimated that there were 8,000 managed service providers in the United States, with the average managed service provider reporting annual revenue of 3.9 million, and an average employee size of 25. http://mspmentor.net/sales/average-managed-service-provider-39-million-revenue .

This number has likely nearly doubled since then as many companies have tried to cash in on this growing market. It is estimated that small and medium sized businesses will spend 285 billion dollars by the year 2019 transitioning to the cloud. http://blog.kaseya.com/blog/2015/01/08/managed-services-market-evolving-fast/

Companies from many different types of verticals and sizes have adopted this model and it seems like managed service providers have become like McDonald’s with one on every street corner. With the average employee size of 25 there are many managed service providers that have 10 or less employees. These companies may not aspire or feel the need to grow too large as they do not want the responsibility and the overhead of added employees. In this scenario, smaller managed service providers do have options.

One viable option is to outsource some or all services to another IT managed services company. Seems counterproductive, right? Perhaps not. Companies outsource their IT because it is often more cost effective than hiring an internal staff and with less management responsibility.

The same principle can be applied to managed service companies. Let’s face it, good IT technicians and engineers are hard to find. By outsourcing helpdesk services or even all services to another larger company, smaller companies can concentrate on other business such as managing their relationship with clients and proactively planning projects. They also no longer have to worry about managing employees and can successfully grow their business with minimal staff.

TCC Software Solutions has option when it comes to this offering and values our partnerships. Come check us out at https://www.e-tcc.com/managed-services .

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