5 Myths of Managed IT Services Debunked – Myth #5: Outsourcers are not Innovators

The final part to our series explores the value of integrated innovation as applied to truly transformational outsourced service engagements.

To dispel the myth of Tier 1 Support is a Commodity, the ability for managed service providers to engage end users through multi-channel support methods –including person-to-person interaction- as well as analyzing and solving their issues quickly keeps the value of Tier 1 Support relevant in an “always on, always connected” world. Let’s move ahead to the final misconception about how to assess, engage and leverage Managed Service Providers to suit your needs.


The notion that managed service providers can enter an IT environment and simply fix all of its issues through promises of transformation, improved operations and tangible savings through outsourcing can be challenging to achieve and complex to measure. In the old days, outsourcers would likely have the luxury of time, such as a ten-year contract where transformational work could take place during the first 18 months or so, followed by the start of true operations in month nineteen. Today’s market no longer has the patience for this kind of progress.

Innovate or Die

No longer can an outsourcing engagement be a giant R&D project for service providers. Innovation needs to be baked right in from day one. What’s more, a truly savvy service provider will innovate constantly, driving the price/quality equation to reduce the cost while enhancing the complexity of the service over time.

Another consideration: rather than pushing one standard innovation agenda onto all clients, service providers must align their programs to the client’s specific cultural and operational ability to consume any new innovation for real benefit to their business. This approach also requires deft client intimacy and carful governance to achieve a desired outcome.

Client-Facing Service Delivery Model

How do you apply integrated innovation to a managed services engagement? Innovation not just in software but in work flow, business intelligence and process models? To operate a client’s environment better than they could do it themselves? Here are some of the ways:

An IT service management framework that has integrated innovation baked in:

MSP’s are Innovators, Too

Typically, it’s the OEM's (original equipment manufacturers) and the ISV's (independent software vendors) that are thought of innovators. I'm arguing that MSP’s (managed service providers) are innovators, too. MSP’s need to be pragmatic innovators, however. MSP’s need to know how to apply innovation to service engagements while making that innovation affordable. It's another kind of innovation from OEM’s or ISV’s. We innovate how we produce, deliver and price our service to make it easy for our clients to consume that service using innovation.

5 MYTHS of Managed IT Services

MYTH #1: Bigger is Better
MYTH #2: Domestic Cannot Be Global
MYTH #3: Offshore is Always Less Expensive
MYTH #4: Tier 1 Support is a Commodity
MYTH #5: Outsourcers are Not Innovators