More and more, the financial services industry is seeing the benefits of outsourcing some or all of their IT to a Managed Services Provider (MSP). Managed Services is the name for a group of IT services which is provided to a business bu a professional IT company (the Managed Services Provider).
Outsourcing is big business in the UK and becoming increasingly popular. In the first quarter of 2018, outsourcing contracts worth £178 million were signed in the UK. Of this figure, financial services accounted for around £363 million (or 51 per cent).
While these numbers are slightly lower than the same period last year -possibly due to the uncertainty of Brexit affecting buying decisions- they do show that the financial services industry is willing to invest in outsourcing to enjoy the benefits it can bring.
Outsourcing elements of your business requires trust and transparency from both sides, particularly in relation to IT. If you are considering outsourcing IT to a Managed Services Provider, read on to discover Core's top questions to ask any potential MSP before signing on the dotted line...
How will using your service help us to compete better?
Outsourcing IT should enhance your company performance and enable you to compete better in a saturated and rapidly-changing industry. Ask your MSP how outsourcing aspects of your IT -and choosing them, in particular- will help you become more agile and put you at an advantage to your competitors, compared to keeping IT in-house.
How will using you as an MSP help us to adopt technologies more quickly than if we kept IT in-house?
Any Managed Services Provider worth their salt will have access to the very latest software and technology, which means you do too.
This, and the fact that your software will be regularly updated to the latest version without you having to lift a finger, is one of the major benefits of Managed Services. Ask any potential MSP how they will ensure this is the case for your business, and how they will help you adopt technologies more quickly than if you didn't outsource your IT to them.
Who have you worked with before? Have you worked with clients in the same industry and the same size as us?
For outsourcing to work, it's crucial your MSP has experience working with companies of a similar size to yours, and in the same industry. Otherwise, they may be out of their depth and unable to provide what you need. Ask for examples and speak to these companies directly. Are they satisfied with the service they received? Did the MSP meet the terms of the Service Level Agreement (SLA)? Would they choose the same MSP again? A reputable, competent MSP will have no problem with you asking past clients these questions.
What certifications do you have?
Managed Services is becoming increasingly popular, with many IT companies offering the service. This means that, while most providers are highly capable, others are less qualified; and it's getting harder to distinguish the two. Ask your potential MSP what certifications they have, who they are accredited by and who they have partnered with.
What security measures are in place to protect our data?
An MSP will have access to all your company data. This could include confidential figures, sensitive information and client details. For this reason, it is crucial they have the very best security software and robust measures in place to keep data secure. Question their data security processes and decide whether you think these are adequate. If in doubt, don't proceed: nothing is more important than the integrity of your data.
What are the terms of our Service Level Agreement (SLA)?
A Service Level Agreement is a contract between the client and MSP which defines the service that will be provided. It is the cornerstone of any outsourcing agreement. The SLA guarantees a certain level of service, usually focussing on uptime (the amount of time a computer is functioning or able to function) in the case of an MSP. If the terms of the SLA are not met, the provider will usually offer the client compensation in the form of a refund or free service. The compensation offered will depend on the terms of the SLA.
It is vital that a robust SLA is in place, and that both parties are aware of and agree to the terms. This avoids any confusion and ensures transparency.
How will we be charged?
Different MSPs use different pricing models, depending on the service provided. Will you pay the MSP on a monthly or yearly basis? Or perhaps they have a break-fix pricing model? Ask the MSP about their pricing model to see if this will work for your budget.
While the questions listed above are not exhaustive, they are a good starting point when trying to find the right Managed Services Provider for your needs.