Business Budgeting in 2023: Why CIOs are Moving to Co-Managed IT

It’s no secret that we are likely facing an economic downturn in 2023. More than *half of business leaders are already looking at tightening their belts next year, as the media continues to report layoffs in many sectors.

However, the demands on IT teams are escalating, not subsiding, as technology is key to remaining competitive for almost every business.

So how do CIOs and CFOs balance productivity with costs, when their teams are already struggling to keep up with heavy workloads?

Table of Contents

The Need for Strategic IT Partnerships
Five Reasons Why CIO Are Moving to a Co-Managed IT Model
Three Stories from Real IT Leaders on Supplemental IT
Summary: Co-Managed IT Services for Smart CIO Leadership

The Need for Strategic IT Partnerships

As companies continue to grow, so too do their technology needs. When it comes to balancing the budget, there are many high level decisions that CIOs and CFOs need to make.

A good place to start is taking a look at the cost of internal hiring vs. outsourced IT. 

Most companies with an existing IT team look to supplemental or co-managed IT to help fill the gaps, amongst other benefits.

Below is an example of the potential cost savings that four different sized companies could benefit from, by outsourcing some or all of their IT functions to a Managed Services Provider (MSP.)

Want to download a PDF of the chart? Please click here!

Rather than add to internal headcount, a good co-managed IT partnership with the appropriate IT services provider can provide the flexibility and scale leaders need, while offering important cost savings.

CIOs can choose to outsource specific IT functions, from help desk to network management and monitoring, software patching, hardware and software procurement, workstation provisioning, cyber security and much more.

And of course, when you choose to work with a larger MSP such as Ntiva, you also gain access to a deep bench of technology experts 24x7x365 days a year for a fixed, monthly recurring fee.

Five Reasons Why CIOs Are Moving to a Co-Managed IT Model

1. Employee retention - With co -managed IT, your staff is NOT replaced. Your IT provider will help fill the gaps as necessary, working with the existing team and giving them access to best in class tools.  This frees them up to do their best work so they become far more productive - and less likely to leave.
   
   
2. Cost efficiencies - We don't have to tell you how hard it is to find, hire, and retain top talent. With co-managed IT, you don't have to take on the cost, overhead and risk of a huge IT department. An outsourced IT provider never takes vacations or sick leave - you will NEVER be left short staffed.
   
   
3. Reduced cybersecurity risk - Larger MSPs such as Ntiva offer 24/7 cybersecurity services, including tools and services that are far beyond the reach of the average business. In our case, our team of cyber experts work with your team to provide the proactive, round the clock protection that is crucial on today's environment.
   
   
4. Access to expertise - No one IT person can know it all or do it all. As a co-managed IT client, your team will have access to a deep bench of expertise to get advice and to help decide which technologies are best for your company.
   
   
5. Access to automation tools - These are tools that most companies couldn't reasonably afford to bring in-house, but can help your team prioritize and resolve employee problems faster. Your IT department will be more effective and efficient with full access to sophisticated tools that a larger MSP can provide.

Three Stories from Real IT Leaders on Supplemental IT

Here are three stories from IT leaders who chose to supplement their teams with co-managed IT support from Ntiva, with the goal of reducing costs, increasing efficiency and filling in gaps.

Story #1: Bogged Down by Routine IT Maintenance

At PMMI, an association for packaging and processing technologies in Virginia, the IT team was getting bogged down with repetitive maintenance tasks. It was like being on a hamster wheel, and some of the more senior IT resources were indicating they needed a change.

Andy Lomasky, Director of IT, knew he wanted to have his team focus on long term projects that not only utilized their talents, but would really make a difference to the business.

However, he could not spare these resources and jeopardize the day-to-day needs of the company – that would have been a very risky move.

And hiring additional headcount to tackle the routine work simply did not make sense from a financial viewpoint.

Here’s how Andy solved the problem!

Andy decided to outsource some of the day-to-day repetitive tasks, including network monitoring, patch management, server management, desktop support and help desk to Ntiva.

He also had a gap to fill – no one on the team had in-depth Apple expertise, and he had an environment which offered both PCs and Macs.

His more senior staff were now freed up to work on specialty projects which had been put on the backburner for far too long.

And, he saved thousands of dollars a year by utilizing the outsourced IT model as opposed to hiring, training and retaining expensive IT resources. Go, Andy!

Story #2: Filling The IT Skill Gaps in a High Growth Company

Mid-America Real Estate Group had a small IT team in place, who were terrific at every day troubleshooting and help desk support.

The business administration struggle was keeping on top of advanced infrastructure management, including round the clock network monitoring, consistent software updates and managed backup and recovery.

This was becoming even more critical as the business grew, and Vice President Dan Hansen was looking for a solution.

Here’s how Dan solved the problem!

Dan realized he could go one of two ways. Start the long process of finding, hiring and training additional IT resources – or outsource the functions that the current team were not able to address.

Ntiva sat down with Dan and team, and drafted a strategic plan, identifying which gaps needed to be filled. It was made very clear to the existing staff that this arrangement was created to supplement – not replace – the existing team.

The end result was that the IT team in place actually learned additional skills while on the job, and as the company and its needs grew, they were able to advance in their careers.

Ntiva continues to partner with Mid-America, offering a wide range of resources and expertise that helps move the business forward.

Story #3: Overwhelmed by Special Technology Requirements

Kimball Construction had operated for years with just a single IT resource. Steve Burkett, Kimball’s IT Director, was responsible for supporting about 45 employees, which is just about the limit for one IT guy to support.

However, the big challenge for Steve was cybersecurity.

Steve was getting concerned that they did not have enough protection in place, and knew that while he was an excellent generalist, he was not a cyber expert. On top of this, Kimball had some upcoming projects which entailed selling into the Department of Defense (DoD).

This meant that Kimball needed to be CMMC certified (Cybersecurity Maturity Model Certification), which is not an easy cert to achieve or maintain.

Steve knew it was time to look for outside help.

Here's how Steve solved the problem!

After meeting with a number of IT service providers, Steve was pleased to learn that Ntiva had a team of dedicated security professionals which included deep expertise in CMMC.

He made the decision to outsource certain functions, including 24x7 managed security, in order to de-risk the company.

Steve utilized this expertise not only to achieve CMMC, but also to provide their overall security needs on a monthly recurring basis.

This turned out to be a smart move on Steve’s part, providing a cost-effective way to protect the company while also being able to bid confidently on lucrative new contracts.

Summary: Co-Managed IT Services for Smart CIO Leadership

The need for external technology expertise to add scalability, agility and security has never been greater, while still keeping costs under control.

Co-managed IT services should be considered a platform for a lasting and on-going partnership, blending the convenience of services, tools and education to fill in the gap – when and where needed.

Keep in mind that co-managed IT services are not meant to replace your IT department!

A qualified MSP such as Ntiva will work with your existing in-house IT team to draft a strategic plan that works best for your needs.

Reach out to us if you’re interested in exploring your options, either for fully outsourced IT services or a co-managed IT partnership with your existing team.

Want to learn more about Co-Managed IT Services for your business? See Ntiva’s Co-Managed IT Services.

(*Source: Spiceworks Ziff Davis)