Benefits of Managed IT for Manufacturers
But do manufacturing businesses benefit from Managed IT? Multiple manufacturing companies such as Emco Gears, Jet Gasket and Seal Co, and Marathon Products Incorporated have partnered with ITS to put Managed IT to the test. They've experienced the following benefits from getting Managed IT:
1. Managed IT is a resource-saving partnership.
By getting Managed IT, manufacturers save time and money. You and your team can funnel more of your resources into product and service improvement, instead of worrying about IT systems.
2. Managed IT provides 24/7 IT support.
Your manufacturing business must have the ability to deal with the unexpected. Due to their utilization of multiple IT personnel, MSPs can provide round-the-clock network monitoring through staff and software monitoring. If you have suppliers in different countries, you can rely on MSPs to get the message to you.
3. Managed IT makes meeting IT regulatory standards easy.
Following IT security standards has never been easier. An MSP can help you stay compliant with IT guidelines from multiple organizations, with the side benefit of making it easier for you to apply for cybersecurity insurance.
4. Managed IT gets rid of tech scaling problems.
One of the biggest manufacturing challenges is keeping up with company growth. Managed IT designs your network with scalability and handles the procurement process, so that you don't have to worry about change.
5. Managed IT empowers companies with top-tier cybersecurity.
An MSP can improve your organization's cybersecurity efforts; they point out vulnerabilities in your network and provide recommendations. Also, they will ensure that your systems are up-to-date and up to current security standards by implementing patches, updating your devices and software, and much more.
Problems That Come with Managed IT for Manufacturers
As with anything your manufacturing business invests in, you it's important to exercise caution. So before you commit to any provider, consider the cons of Managed IT for manufacturers.
1. Managed IT can get expensive.
Managed IT costs range from $150-$250/user monthly, depending on your company’s current IT situation. The larger your company, the higher the monthly fee costs. And while you’re getting IT experts and top-of-the-line IT infrastructure with bill, the price can be an obstacle for many small to medium-sized businesses.
2. Managed IT is optimized for offsite IT support.
If you prefer permanent onsite IT support, Managed IT may not be for you. MSPs have streamlined their process for fast problem resolution and heavily utilize offsite support with specialized programs. While most MSPs still offer onsite services, sending someone onsite isn’t the first action MSPs take.
3. Managed IT requires an onboarding period.
Your MSP needs to onboard your manufacturing business, and this can take some time. You have to factor in, at most, twelve weeks of onboarding before you can get the full service of Managed IT.
4. Managed IT requires a lot of trust in your MSP.
It’s crucial to partner with the right MSP for your company because you’re entrusting your entire IT department to them. Choosing the right MSP requires thorough research and evaluation.
When Do You Need Managed IT?
If you find yourself in any of the following situations, you need Managed IT:
- You have difficulty finding and retaining team members for your IT department.
- You have a distributed workforce in multiple locations.
- You have around 20 employees and are continuing to grow.
- You have IT projects that you need to finish but can't do due to lack of staff.
- Your resources are stretched too thin and can't accommodate your tech needs.
- You have urgent regulatory requirements but don't know where to start.
But not every business needs to get Managed IT. If your business fits most of these situations, you may be better off with another IT service like Co-managed IT or Break-fix IT.
- You prefer onsite support and an in-house IT department.
- You want to keep IT costs flexible and don’t want to pay a fixed rate.
- You have less than 20 employees and are at a stable company size.
- You are starting your business and stabilizing your company process.
How Much Does Managed IT for Manufacturing Businesses Cost?
Each company will spend a different amount on Managed IT. But a good range for Managed IT is $125-$250/user monthly, depending on the factors outline below.
1. Number of Users
The total cost of your Managed IT plan heavily depends on the number of users in your IT network. Most MSPs charge a monthly fee per user because more users mean more devices to manage, which equals a higher price.
2. Number of Locations
The number of locations directly impacts your MSP's ability to reach your users and provide service. They must ensure their services cover the second (or third) office location. So, the more locations you have, the more computers they need to set up and manage, which will push up the costs.
3. Number of Servers
Having more servers is more expensive. Procurement of onsite servers for your business may also be a separate cost, as server equipment can cost around $5,000-$20,000. The labor in setting up a server is an extra $3,000-$5,000. However, some MSPs provide server renting options, with price ranges $185-$500/month.
4. Amount of Data
Data is complex. For in-house IT, the cost for data storage is different from the cost of protecting it. But most MSPs bundle in data protection with data storage – when they have your data, they need to protect it too. Like users and servers, more data requires more storage and more management, which results in a higher fee.
5. IT Support Time Needed
IT Support Time is how long you and your MSP talk while fixing an IT issue. If you've hired a break-fix company instead of an MSP, you're on an hourly rate. Hourly service time is often $150-$250/hour but can go up or down depending on the company. Managed IT Service Providers include service time in the plan you get with them. Plans for only service time can range from $50-$150/user per month.
6. Services & Upgrades Needed
Will you be working with the provider to improve your network's security? Are you going to ask them to set up your entire IT infrastructure and manage your devices? Will you need cloud services or VoIP services? Are you on outdated software and need an IT overhaul? Go through the Managed IT plans of each MSP candidate. Each MSP offers different services for each Managed IT plan.
How to Choose a Managed IT Service Provider for Your Manufacturing Company
Once you've made the decision to partner with an MSP, it's vital that you find one that can meet your needs as a manufacturer. So before signing that contract, here are some tips to find the best MSP for you.
Check customer reviews
The first thing you need to check is other customers' experiences with the company. Good reviews from various people are a sign of a company doing things right. If there are other manufacturing businesses partnered up with your potential MSP, then you can ask them for their experience.
Find their service & price list
Do they offer the services you need at a price point you can agree to? By checking this immediately, you can easily remove or add a company to your list of potential partners.
Look up their certifications
One of an MSP's primary benefits is the availability of experienced and qualified IT professionals. By checking what their staff can do, you can evaluate if their claims can be backed up by their staff.
Schedule a meeting
Prepare a list of questions and set up a meeting with your MSP. If possible, try to visit your MSP's office or at least have a video conference with the team involved in providing support for your company. This allows you to see their work environment and verify their expertise.
Put this guide to work
Talk with an ITS specialist about how this applies to your organization.