As technology becomes increasingly complex and security breaches are at record levels, more companies are considering using managed IT services. They may be concerned, however, how this might help or hinder profits. There are several specific ways in which managed IT can help a manufacturing company increase profits.
Technology is constantly changing. Unless a company specializes in technology, it’s unlikely they will be able to stay up-to-date with all new technology. Harvard Business Review reports that there is often a gap between the technology a company has and the ability to use it effectively.
An IT service will not only keep a company current with the latest technology, but will help them use it in the most effective ways possible. This can enable a company to scale and grow more quickly. Managed IT services are a crucial aspect of both improving and utilizing technology in an effort to make a company as profitable as possible.
Computer hacking and security breaches are now epidemic. Companies are increasingly spending massive amounts of money to make sure their data and networks are kept secure. In spite of the increased expenditures, there are still no guarantees. According to Marsh & McLennan Agency, manufacturing companies are becoming increasingly susceptible to data breaches. Causes range from unprotected servers to employees falling for internet scams.
Managed services can provide security 24/7. They can continually manage and improve the strength of the firewall, protect servers and provide security for computer systems. They will be able to implement security strategies that work the best for each individual company. If a security issue would arise, an experienced IT team can quickly reduce the amount of damage to a company. A managed service can protect a company from lawsuits as well as internal financial losses.
Rules for staying compliant can be complicated. When working with a wide range of clients and vendors, regulations may vary. There are also different government regulations to consider at both the federal and local level. To add to the confusion, laws regarding data and security compliance are constantly changing.
A professional IT company can keep a business compliant. If a company isn’t complying with all current security standards regarding data, this may result in hefty fines. Whether it’s government regulations or internal mandates, an external IT team can assess compliance issues and keep a company’s data compliant and up-to-date.
Computer crashes and even minor glitches can cause an enormous amount of downtime for a company. Computer downtown can quickly eat away at profits when employees aren’t working and products may not be moving due to computer and internet problems. According to Information Technology Intelligence Consulting, even one hour of downtime can cost a business $100,000. While the loss may not be as steep for smaller businesses, even a few thousand dollars in lost revenue can cripple a small company.
An experienced managed services team has the expertise to get computers working and the internet connected as quickly as possible. They have the ability to provide business continuity plans that can keep a company running smoothly even when computers crash and tech glitches occur. With managed IT, a company can expect productivity to improve, which in turn will increase profits.
One of the biggest expenses any manufacturing company has is employee costs. Employee salaries and benefits are a major consideration when maintaining an internal IT team. There will also be training costs to make sure the employees are current with all technology changes. There may also be office space to consider as well.
A managed IT service will provide employees who primarily work off-site. This can add up to a large amount of money saved each month. Without having to hire employees who specifically manage IT, a company is almost certain to save money and increase profits.
With an internal IT team, costs may fluctuate from month to month. Not only can a company save money on employee costs, but will ultimately avoid pricey solutions to serious problems when they occur. If there is a computer crash or a major security breach, costs to solve those specific problems can mount considerably.
Most managed IT companies will provide their services for a flat rate. This may also save a company money on software. This means a manufacturing company will be able to budget more precisely and not have to worry about unforeseen costs taking a chunk out of their profits.
Focus on the Business
If a company is constantly trying to stay up-to-date on the latest technology, always fixing computer glitches and training in-house employees to take care of IT, this mean a lot less time to focus on the actual business. According to Network Alliance, everything from providing training and controlling user access to applications, to reducing complexity of software platforms and protecting against hackers and viruses is necessary for an internal IT team. Done effectively, it means spending an enormous amount of time and energy.
Managed IT will enable a company to focus solely on their business interests. Business owners, as well as employees, that are focusing on what they love to do will ultimately improve motivation and job satisfaction. This will obviously increase overall productivity and make a company more profitable.
It’s crucial to implement the services of a managed IT team for any manufacturing company that wants to maintain the highest levels of technology while reducing security risks, staying compliant, remaining in-budget and focusing completely on the business. Outside IT services can reduce or even eliminate excessive downtime and the threat of a security breach. Hiring an experienced Managed IT Service Company that specializes in manufacturing can definitely help a manufacturer increase profits.