Digital transformation isn't just a buzzword—it's a necessity. Organizations across industries are embracing technology to streamline operations, enhance customer experiences, and drive innovation. The benefits of new technologies are undeniable, meaning businesses need to adapt or risk being left behind. However, embarking on a digital transformation journey can be daunting, requiring expertise, resources, and time that many businesses lack internally.
Think about the highly specific expertise required to maintain different components of your digital infrastructure. The more advanced solutions you leverage, the more nuanced and highly specific your long-term maintenance needs will be. This is where Managed Service Providers (MSPs) step in, filling in highly specific internal technical expertise gaps. In leveraging Managed Services, companies can ensure they derive maximal value from their software solutions without incurring the time and expense associated with sweeping hiring initiatives.
Managed Service Providers (MSPs) are third-party companies that businesses hire to oversee digital infrastructure maintenance. They act as strategic partners, taking over specific tasks or entire functions such as IT infrastructure, software maintenance, and system optimization. Essentially, managed service providers provide the missing expertise companies need to maintain modern workflows.
Between 2024 and 2029, managed services are predicted to grow at a CAGR of 7.9%. Clearly, more and more companies are opting for external help with digital maintenance and improvements. This increase is tied to the substantial benefits of outsourcing tasks to service providers. For example, working with a managed services provider can reduce your in-house IT costs by 40% while increasing efficiency by 50-60%.
There are many reasons why a company may choose to outsource maintenance to managed services, the most common being costs and skill gaps. Contracting third-party experts to oversee specific processes is often more cost-effective than hiring the necessary resources. At the same time, there are a limited number of expert workers highly skilled in certain areas of solution management, making it impossible for every company to have a full suite of specialists. Managed services offer the best of both worlds. Companies can keep their overhead costs relatively low while also garnering the benefits of a skilled workforce.
Moreover, managed services are a key component of many companies' risk management strategies. MSPs continuously monitor systems to identify and resolve issues before they escalate into major disruptions. For example, they can detect early signs of hardware failure or software vulnerabilities. They also implement robust backup and disaster recovery plans, ensuring that critical data and systems can be restored quickly in the event of a cyberattack, natural disaster, or hardware failure.
Let's take a look at what managed service providers do for their clients.
Managed service providers like Canidium also specialize in software implementations. They bring specialized knowledge to the table, ensuring that complex systems like pricing solutions or CPQ platforms are implemented efficiently.
For instance, imagine you are a manufacturing company looking to deploy a CPQ solution. Without an MSP, you might struggle with configuring the software to handle complex product catalogs, dynamic pricing rules, and integration with existing ERP systems. At the same time, an MSP not only handles the technical setup but also aligns the system with the company's unique business requirements.
Digital transformation isn't a one-time event; it's an ongoing process. Managed service providers ensure that systems remain up-to-date and aligned with evolving business needs. For example, in the case of incentive compensation management software, an MSP can help regularly review and refine compensation plans, ensuring they motivate the sales team while remaining cost-effective.
Continuous monitoring is key to keeping your system in optimal condition. Beyond performing the routine tasks required to keep your system in peak condition, Canidium's managed services team tracks the health of your solution, both to proactively solve challenges before they impact your system and to capture and troubleshoot issues as they arise. Otherwise, maintenance issues left unaddressed for too long can impact your compensation and incentive processes.
One of the biggest challenges in digital transformation is integrating new solutions with existing systems. MSPs excel in ensuring seamless data flow between software platforms. For instance, when a retail company adopts a pricing solution, an MSP can integrate it with the CRM to provide real-time pricing information to sales representatives.
Weathering times of economic volatility requires operational agility. Your digital infrastructure must remain flexible enough to facilitate quick structure changes in response to market fluctuations.
As businesses grow, their technology needs evolve. Managed services ensure that digital solutions scale effectively. For example, a startup using CRM software may initially have basic needs, but as the business expands, an MSP can help integrate advanced features like predictive analytics or AI-driven customer insights.
Managed service providers help businesses optimize spending by offering predictable cost structures. Instead of hiring a full-time team to manage a pricing solution, a company can rely on an MSP to handle it at a fraction of the cost.
For example, Canidium's managed services agreements come with two different fee structures:
Prepaid Bucket of Hours: Clients prepay for a set number of service hours. This option provides you with:
Pay-As-You-Go: On-demand services without long-term commitments. This option includes:
Either option confers the benefits of professional managed services. However, the prepaid bucket of hours is slightly more cost-effective and offers the advantage of a named team. In most cases, prepaid hours are the ideal option. Yet, under the right circumstances, pay-as-you-go can be preferable, specifically for clients in need of highly flexible contracts.
As technology continues to evolve, the role of managed service providers will become even more critical. Emerging trends and innovative new technologies will require specialized expertise, and businesses will increasingly turn to MSPs to guide them through these transformations.
When you work with third-party managed services, you get a strategic partner. By providing expertise, ensuring seamless integration, and enabling scalability, MSPs empower businesses to embrace advanced technologies and drive long-term success. For companies looking to implement pricing solutions, incentive compensation management systems, CPQ platforms, or CRMs, partnering with an MSP can be the difference between merely surviving and truly thriving in the digital age.
Learn more about Canidium's managed services for SAP software in this comprehensive guide.