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In the last few years, we’ve seen a significant expansion of the MSP niche. Many IT experts are establishing their own companies and assisting small businesses all over Massachusetts. The model can be extremely lucrative, especially if you know how to market yourself.
Hiring an MSP is also great for Massachusetts companies and local economies. These IT providers help small businesses stay afloat and compete against much bigger brands. Specifically, MSPs are able to address companies’ burning IT needs without breaking the bank.
In this article, we’ll explain the concept of MSPs, its benefits, and how these providers assist small towns in Massachusetts.
What Are MSPs?
MSP stands for Managed Service Provider. These are IT companies that outsource their services to various local businesses. Your average MSP consists of numerous informational technology professionals with different backgrounds. Their teams usually include network specialists, cybersecurity officers, developers, and other experts who can assist small companies in fulfilling their basic IT needs.
Hiring an MSP is cheaper than forming an in-house IT department. Small businesses don’t have enough money to hire several people to monitor their networks and implement the best software/hardware practices. To circumvent the issue, small businesses sign contracts with managed service providers, who can perform all these tasks at a fraction of the usual cost.
Benefits of MSPs
Like any other type of outsourcing, MSPs give you more flexibility. They reduce the need for daily micromanagement while optimizing the company’s budget. When you hire a Massachusetts IT experts team, you get all these vital IT services and ensure your business isn’t hacked.
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Lower Cost
Having an in-house IT team can easily cost you from $20,000 upward. By comparison, an MSP business will charge you half or a third of that price. This makes managed service providers critical for small businesses that aren’t able to drain their budget just so they can stave off cyberattacks or buy the latest software.
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Less Management
Managing additional people is the last thing you need if you’re a small Massachusetts business. To make matters worse, IT experts are often seen as ancillary staff that don’t directly contribute to enhancing daily operations. So, instead of focusing on your primary business, you’ll need to go back and forth with your in-house IT team, discussing the latest software updates.
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Flexible Service
MSPs hire various IT experts. They also have connections with freelancers who jump into projects according to clients’ current business needs. On the other hand, if you were to form an in-house IT team, you might not have specialists who can perform certain tasks. You’ll be forced to continuously onboard and offboard people, depending on what you’re trying to accomplish at a given moment.
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Unlimited Scaling
As such, MSPs provide you with unlimited scaling. These companies employ lots of people with different specializations and can easily increase their teams. So, if your needs increase over time, you don’t have to worry whether you’ll have enough people for the job or the right software.
Drawbacks of MSPs
While MSPs provide numerous benefits for small companies, they aren’t always the best solution. Specifically, unlike internal departments, you don’t have full control over providers’ daily workflow. Based on that, your satisfaction rate will vary depending on the MSP’s expertise and experience.
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Loss of Control
Some business owners love to have all the strings in their hands and oversee daily operations. For them, not having full insight into certain processes can be stressful and would distract them from their daily operations. As you don’t have full control over your IT resources and procedures, you also can’t react quickly during a crisis.
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Poor Communication
Unlike an in-house team, MSPs are not in the same office as you. Although nowadays it’s much easier to communicate with your off-location partners, you might still encounter communication issues. For example, an MSP might not be available during work hours, or they won’t respond quickly to your request.
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Company Size Dependency
While MSPs are great for small and mid-sized businesses, they aren’t well suited for big companies. Large businesses need numerous IT experts to run their daily operations, whether these experts are freelancers or working in-house. So, forming an in-house team as quickly as possible will actually save you money in the long run.
MSPs’ Impact on Massachusetts Economy
Managed service providers have a positive impact on the local Massachusetts economy, especially on smaller companies. MSPs help companies deal with numerous challenges of modern business, such as data storage and transfer, software and hardware needs, cybersecurity, and so on.
Given the high cost associated with employing top IT talent, it’s much easier for local brands to outsource their work. Keep in mind that many MSPs hire professionals from third-world countries, so they’re able to offer competitive rates without jeopardizing service quality.
By working with MSPs, small Massachusetts businesses are able to focus on their primary activity. They don’t have to worry about complex IT concepts that would otherwise take them months to learn and implement. This is crucial during the first few years of a company’s existence, given that small mistakes and expenses stack up rather quickly.
It gets even better if an MSP is located in the state. That way, Massachusetts can reap benefits from additional income and taxes generated by these IT providers. Given that successful MSP can make a lot of money, it will have a rippling effect on small townships that house these companies.
What Does the Future Hold?
MSP niche likely won’t change a lot in the following years because most of these companies are already very successful. The concept makes IT tasks wildly efficient. It allows companies to perform various activities without breaking the bank or disrupting daily operations.
MSPs also have a major impact on the Massachusetts economy, either by supporting local brands or generating taxes as native companies. While some people are afraid of outsourcing, it has proven to be beneficial for everyone involved.
