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Managed Services buying reasons; lessons from the fed

A survey conducted by FedScoop and paid for by GDIT took a look at the managed services provider market in federal agencies.   Two in three respondents say their agency is currently using or planning to use an MSP to support their IT work.

Reason vary – but a key one is cost efficiencies and experience in cloud, data and cybersecurity.    Quoting FedScoop:

There are a number of factors motivating agencies to take a fresh look at MSPs. Reducing long-term IT costs ranks highest — by six in 10 respondents. But four in 10 respondents also cite the importance of focusing more attention on mission and less on operations as a driving force. A third of respondents indicate the need to gain greater operational agility and automation, and to reduce risks, are also big motivators.

Executives in the survey identify a variety of core areas where MSPs provide value. Most respondents (65%) point to staffing and support, but 54% cite security and 44% mention compliance as key areas where MSPs are filling critical support gaps. Another four in 10 respondents say the need for training and change management, and for supporting continuous improvement and innovation, are core areas where MSPs make a difference.

Why do we care?

This survey and IT provider are clearly focusing on a different segment market – federal agencies is a long way from the bulk of providers who serve SMB.

Besides the customer… the data points are the same.  I could be citing a survey of any typical channel company and get similar results.     And that’s what really interested me.   It’s the core value statement that is the same.     There are distinct differences in implementation to be sure, but the core value is the same.

When I get asked about the value of IT services in the long run, I cite the same thing.    Providing guidance and insight into to the use of technology in business is a solid investment.      The technology will change, but the value doesn’t.  That’s why it’s key not to hold onto aging technologies or approaches – I’m looking at you, desktop management – because everything being cited here is several steps removed from that.