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Managed Services Model: Pros and Cons To Implementation

By Joseph Santos

Republish: EasyPublish™ Published: 03Mar2012 Word count: 1542 Viewed: 47 time(s) Get Free Content For Your Site

A managed services model is being approached by increasingly more business owners because they do not have the time nor resources to take care of all the aspects of their business. By hiring a managed services provider, they are able to focus on their main objectives, while letting someone else will take care of other tasks in their company. So what is a managed services model? It is where a vendor will take complete responsibility of a set of deliverables on a certain project. Because of this, the vendor will have complete control regarding taking the best decisions given the project's guidelines. This means that a business owner will need to trust the professional he or she hires in order to manage a certain part of their business without actually fearing that things won't go according to the plan.

When hiring a managed services provider, the budgets will oftentimes get calculated for a period between six months and up to five years. There are also projects where the payment will be a fixed one and in this model the service provider will be free to choose the people he or she will work with to deliver the project and will also have control over the time in which everything will be ready. In such projects though there are risks, because the vendor might decide to have shared resources allocated which will overall cause delivery problems to appear. Needless to say the vendor will need to have an excellent grasp of the clients' systems and the client will as mentioned earlier, need to trust the vendor very much.

Like any types of services, there are Pros and there are also Cons of a managed services model.

Pros: Due to the fact that another person or groups of persons will take care of certain tasks in the client's business, the business owner will be able to focus on more important tasks within his or her company. Choosing a vendor is a good choice because they are more independent and they will rarely cause any types of interferences In regards to knowledge retention it easily becomes more sustainable and at the same time more streamlined With their best practices brought to the project at hand, vendors will be able to make important improvements With a SLA approach the client's company can be let in on massive benefits

Cons: Sometimes vendors will dislike assuming more management responsibilities A massive lack of understanding between both parties can be yielded due to culture mismatch which will eventually affect the deliverables There are some situations when the vendors will be unable to understand the goals of the client's company which will in the end result in major setbacks In some cases there will be multiple vendors hired which means that while one will deal with the Infrastructure, the other will deal with the applications. In such cases, blame games are very common with each vendor not willing to assume responsibility in case of failure.

A mangaged services model is a proven model and those who have a company and would like to improve its functionality and also profitability, should choose a professional provider to cater to their needs. It will be worth the effort.

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