5 Common Misconceptions about Managed Services
With the increasing potential complexities that come with managing a business, we’re seeing a rise in the number of companies moving their recruitment activities to a Managed Service approach. There are many reasons why – to support them with rapidly changing business developments, cost management, and advances in technology, to name just a few. Yet, despite this increase in take up, there are still a few common misconceptions that stop some from considering this option.
To help you separate the fact from the fiction, here are five of the most common Managed Service myths – and the truth behind them:
Myth 1 – A Managed Service contract is more expensive
Many IT leaders believe that hiring contractors is more expensive than hiring permanent members of staff. But what’s often not considered is the cost of training and upskilling existing teams, to allow the business to keep up with the rapid developments and technological changes. Ultimately this can be more expensive over the long-term and can affect operational efficiencies, with staff often out of the business for long periods of time or unable to action projects. In addition, businesses are faced with the challenges of retaining existing employees, by needing to ensure that they keep them happy in terms of growth, career development and opportunities, as well as financially.
Investing in qualified contractors can be a more cost and time-effective solution, ensuring that the job is carried out by experts with the specialist skills required. Recruiting and managing these contractors through a Managed Service creates additional process and cost efficiencies.
Myth 2 – The Managed Service will drive the direction of the business
Some believe that a Managed Service will take away some of the strategic drivers from the organisation influencing its direction of travel. However, in reality it is more like having a close partnership, where the Managed Service providers are able to help businesses align their strategies with their business goals and priorities.
Businesses typically define what services they’d like to have outsourced and how they would like them to operate, alongside agreeing the service levels and costs. The Managed Service provider then takes the time to understand the organisations’ objectives and provide flexible services as the business continues to develop, whilst maintaining an open dialogue around how to make further improvements to take advantage of new opportunities.
Myth 3 – Service levels will not be as good as in-house
With today’s technologies and communication advances, Managed Service providers can easily operate off-site and at lower costs. Some even offer 24/7 support. And on top of this, in-house resources may not always have the necessary skills and experience needed to provide suitable resolution and guidance on issues, which may lead to further downtime and costs for the business.
With a Managed Service provider, businesses can be sure that they can access specialist skills which they don’t have in-house, allowing for more scalability. Moreover, their applications and processes are managed more proactively. Issues are not only handled as they occur, but they can often be prevented before something goes wrong. As a result, businesses can afford to be more aggressive with the Managed Services, as they are paying for a service and expect it to deliver against the agreed SLA’s – so the pressure is on.
Myth 4 – Only large companies can afford to outsource recruitment
It’s understandable that many smaller companies believe that taking on a Managed Service will mean spending large amounts of money to manage recruitment services. But one of the main benefits of a Managed Service is that it provides scalability to the business. Smaller companies can remain competitive by bringing in contractors with specialist skills when required, without the need for investing in additional head count that may not be needed full-time. SME’s in particular can benefit from using Managed Services, as outsourcing can lead to cost savings as well as helping them to make processes and operations more efficient.
Myth 5 – All of the services have to be outsourced
Just because you decide to outsource, it doesn’t mean that 100% of your contingent workforce requirements have to be handled by the Managed Service. Managed Service providers can offer support across the board or businesses can choose to focus their Managed Service on specific business areas to help streamline operations with significant numbers of contractors. A Managed Service provider should understand that different organisations have bespoke requirements and therefore offer various solutions and levels of support to help businesses achieve greater control, efficiencies and cost savings – allowing them to take a pick and mix approach when selecting the services they require.
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