5 Myths of Managed IT Services Debunked - Myth #1: Bigger is Better

The first of a five-part series that explores your new depth of choice in the dynamic world of Managed IT Services.

Never before has there been more choice, change and potential confusion in the world of Managed IT Services. Corporations and public sector organizations of various size, that are seeking managed services for their IT operations, have a wide array of providers and service offerings from which to choose. In addition, new business models seem to be emerging more quickly each week.

Meanwhile, in the midst of all this new decision-making about managed services alternatives, you still have your daily job to do with results to deliver, escalations to resolve and expectations to set with stakeholders. Often, misconceptions about how to assess, engage and leverage Managed Service Providers to suit the needs of your enterprise can hinder the best practices you may have in place today or desire in the future. A provocative discussion dispelling these common “myths” may provide you with some valuable insight.

MYTH #1: BIGGER IS BETTER

There is an old adage in our industry that goes something like this: ‘No one has ever been fired for choosing a large market leader.’ Many buyers and users of managed services sometimes believe there is guaranteed success in choosing from the largest service providers available to them;

• that the size of a service provider, in and of itself, determines a good fit for every buyer of every type;
• that there is quality and comfort, safety and security in “size” alone;
• that somehow, by choosing a company of large size and scale, you're getting the best solution and the best value for your business.

While there are certainly some situations, requirements and conditions that may dictate the need to “go big,” blindly succumbing to a belief in superior outcomes simply due to size can often be far from modern reality.

One Size No Longer Fits All

The dynamics of today’s biz/tech environment demand cost effective agility – combining the right level of standards and scale with a mix of flexibility and speed. The size of a well-known service provider may suggest its offerings will include brand awareness scale and global models, which doesn't necessarily mean it’s the right choice or the right fit for a certain buyer with a certain need.

The myth of size also speaks to the “certain buyer”. Whether your company is a Global 1000 or a Fortune 500 doesn't necessarily mean you need to engage a very large service provider for IT services. This choice really depends on the scope, scale, service levels and complexity of your particular IT requirements versus the traditional allure of a behemoth company.

Most industry analysts will tell you that in today's marketplace, some of the biggest players are struggling with cost effectively right-sizing their services to meet the demands of the modern buyer. Whether it's the earning challenges, M&A issues or simply the ability to keep pace with innovation and change some of the big players are challenged with providing nimble, Cloud-oriented services, successfully delivered across diverse business models.

More focused, specialty players in the managed service arena may be ideally sized to meet the demands of both large and small business because of their ability to adapt quickly to changing needs without sacrificing quality and cost effectiveness.

Right now, we're seeing that smaller transactions and more specialized, component-type services are defining the quality, comfort, security and success of Managed IT Services. Buyers are seemingly leaning more and more toward more intimate choices whereby they are also seeking a more meaningful relationship and deeper cultural alignment with their providers. The Software as a Service (SaaS) model is a great example of this, where hosted software applications are made available to you over the internet and/or a virtual private network, typically the Cloud. SaaS likely works most effectively when provided by functional specialty providers that delve deeper into a fewer application/business service areas, rather than a large, one size fits all approach.

Why would you simply continue to go to the same players when what you’re buying today is so different from that of even 10 years ago. Fewer megadeal requirements, shorter contract terms, specialized services, emergence of hybrid cloud solutions … all of these things speak to wanting more purposeful, right-size managed IT services contracts.

Next time, we’ll explore Myth #2: Domestic Cannot Be Global.