Did you know that business experts recommend hiring an HR department when a company reaches 15 to 25 employees?
What do you do if you can’t afford an in-house HR department? For small businesses, this is a common cause for concern.
Outsourcing is a more affordable and cost-effective option. More specifically, you can hire a managed service provider.
These providers complete more tasks than one, so what is a managed service provider exactly? Keep reading to find out.
What Is a Managed Service Provider?
A managed service provider (MSP) is an outsourced third-party business that assumes the responsibility of customer management services.
So, what is a managed service provider’s role? An MSP can improve operations in large corporations, small to medium-sized businesses, governments, and non-profit organizations.
Managed service providers can handle different areas of business. These are most often outsourced:
- Payroll
- Human resources
- Information technology
- Vendor management
- Workforce management
- Contract management and compliance
- Procurement and sourcing
Outsourcing allows businesses to benefit from more capabilities and experience while avoiding the cost of managing a program themselves.
What to Expect From an MSP
Managed services will begin their work by reviewing your current processes. From there, they can find opportunities that help maximize savings and reduce unnecessary spending.
You might not be aware of the liabilities and challenges that they find. Managed service providers act as unbiased parties that can find problems you wouldn’t otherwise notice because you are too close to the business each day.
Once they analyze your systems, find opportunities, and uncover liabilities, they will build custom solutions based on the unique needs of your company. MSPs continue their work with ongoing maintenance and support.
The Benefits of Hiring an MSP
Once you hire MSPs, you don’t have to give them complete control of business operations. You remain accountable and get to choose what services you want externally managed.
An MSP often handles repetitive, time-consuming, complex, and arduous tasks. Outsourcing an MSP is a growing business trend because of the benefits involved, such as:
- Expert access
- Downtime reduction
- Cost-effective
- Keep up with trends
- Stay compliant
One of the greatest advantages is that you can spend valuable time focusing on other aspects of your business.
A key characteristic of an MSP is that these providers can work remotely from anywhere. This is how your business can avoid high rents where your potential customer base is located.
Do You Need a Managed Service Provider?
If you want to outsource some of your day-to-day tasks to skilled professionals for a fraction of the cost, you need to hire a managed service provider.
What is a managed service provider exactly? These providers assume the responsibility for various tasks, such as human resources, IT, and payroll.
When you hire an MSP, you can reap the benefits discussed in this guide and compete in a booming marketplace.
For more business articles like this, check out the other posts on our blog.
