How to Measure the ROI of Managed IT Services

Okay, so youre thinking about, or maybe youre already using, managed IT services. How to Onboard a Managed IT Service Provider Successfully . Thats smart (hopefully!). But how do you actually know if youre getting your moneys worth? How do you measure the return on investment, or ROI, of those managed IT services? Its not always as straightforward as, say, calculating the ROI on a new piece of equipment. But trust me, it can be done.

First, lets break down what we mean by ROI. Its basically a way to figure out if the benefits youre getting from something (in this case, managed IT) outweigh the costs. If the benefits are greater, youre in good shape. If not, well, its time to re-evaluate.

One of the most obvious ways to measure ROI is by looking at cost savings. Think about it: before managed IT, you probably had someone (or multiple someones) dedicated to handling your IT needs, whether that was an in-house team or a consultant you called whenever something broke. check managed service new york Managed IT can often be more cost-effective than a dedicated IT department (especially for smaller businesses). managed it security services provider Youre essentially outsourcing that responsibility to a team of experts for a predictable monthly fee. managed service new york So, compare the cost of your previous IT setup with the cost of your managed IT services. Are you paying less?

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Thats a good start.

But cost savings arent the only thing that matters.

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What about increased productivity? managed services new york city Think about all the time your employees used to spend troubleshooting IT problems. (Remember that time Karen couldnt get the printer to work and held up the whole office for an hour?). With managed IT, those problems are (hopefully) handled much more quickly and efficiently, freeing up your employees to focus on their actual jobs. This increased productivity translates directly into increased revenue. Try to quantify that increased productivity, maybe by tracking how much time employees are saving on IT-related tasks.

Then theres downtime. Downtime is the enemy of productivity and can cost your business a fortune. managed service new york Managed IT services are designed to prevent downtime by proactively monitoring your systems and addressing potential problems before they become major disasters. How many hours of downtime did you experience before managed IT? How many have you experienced since? managed services new york city The difference can be significant, and that difference translates into real money saved.

Security is another crucial factor.

How to Measure the ROI of Managed IT Services - managed it security services provider

A data breach or cyberattack can be devastating, both financially and reputationally. Managed IT services typically include robust security measures, such as firewalls, intrusion detection systems, and regular security audits. While its difficult to put an exact dollar amount on preventing a security breach (because youre measuring something that didnt happen), consider the potential cost of a breach – fines, lawsuits, lost business – and the value of having a team in place to protect you.

Finally, dont forget about scalability. As your business grows, your IT needs will change. Managed IT services can easily scale to meet your changing needs, without requiring you to hire additional staff or make significant investments in new hardware. This flexibility can be a huge advantage, allowing you to focus on growing your business without worrying about whether your IT infrastructure can keep up.

So, to calculate your ROI, add up all the benefits – cost savings, increased productivity, reduced downtime, improved security, and scalability – and then subtract the cost of your managed IT services. Divide the result by the cost of your managed IT services, and youll get your ROI as a percentage. If that percentage is positive, youre getting a good return on your investment.

Remember, measuring ROI isnt an exact science. (Its more of an art, really). But by carefully considering all the factors involved, you can get a good sense of whether your managed IT services are delivering the value you expect. And if theyre not, its time to have a conversation with your provider.

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