This is the first part of our series on outsourcing and managed services. If you're interested in how to evaluate your operational managed services provider, you can read part II to the post here.
What is outsourcing today?
Outsourcing is a term that covers a wide array of offerings that include anything from basic technology hosting all the way to a full-scale lift-out of a firm’s operational platform to an off-site provider. As the strategic advantages of cloud deployment have become more apparent and mainstream, firms are more receptive to outsourcing. Today, firms elect outsourcing to drive greater efficiency and reduce operational risk, or to add new products or enter new markets.
With this shift in focus, many firms are also looking for a middle way – a greater measure of service than basic technology hosting, but without giving up as much control as the lift-out model often requires. That is what makes the managed service approach particularly appealing among today’s outsourcing options.
Understanding managed services
The managed service alternative is more flexible, allowing firms to choose which operational activities to delegate to a provider and which make sense to maintain in-house. Often referred to as “co-sourcing,” the managed service relationship is a partnership, with the provider acting as an adjunct to an operations team rather than a replacement for it.
From a technology perspective:
- You remain in control. The operational infrastructure resides at the provider’s facilities, but it remains under your authority – you’re not a “tenant” sharing space in someone else’s cloud
- You retain full transparency and on-demand access to your data. With your own dedicated instance, you have the ability to make modifications and generate reports, as needed
- You are relieved of a substantial IT burden. The provider takes care of system support and maintenance
Freedom to focus on your business
Outsourcing technology and operations empowers your firm to focus its energies on investment strategies, client service, and business growth. The managed service option strikes the balance many firms are looking for, enabling you to retain control over systems and data, while freeing you from system maintenance and routine operational activity.
Simply stated, you get all the benefits of technology without the headaches of managing it. Of course, this depends on what technology and operational managed services your provider offers. To identify key questions to discuss with your managed service provider, stay tuned for part two of this blog.
To take a deeper dive on managed services, we’ve compiled a guide and checklist to determine what the best managed service offering looks like for your firm. Download Five Key Questions: What to Look for in a Managed Services Provider, or to learn more about SS&C Advent, request a demo.