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How to Measure the ROI of Managed Services

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Sometimes the benefits associated with managed services can be taken for granted. And at MidnightBlue, we encourage you to take our services for granted! Exceptional service, especially in IT, can make people wonder what, if anything, is going on. The quiet perseverance of a managed service provider is sure to create an ideal scenario for business continuity. 

You know your managed IT service provider is doing their job when your business doesn’t experience any problems. But how do you measure ROI when there is a lack of problems or issues?

To begin, any trending analysis you may have regarding your IT expenses before engaging a managed service provider will identify the savings that this decision has yielded over time. Additionally, when measuring the return on investment of managed services, you need to consider the tangible and intangible benefits.

Tangible ROI Benefits

  1. Improved Cost Analysis – Look at the decrease in downtime, IT calls, and the time for repair and recovery. Consider the big picture of costs and savings to your company and the increase to your infrastructure and additional devices. 
  2. Operating Expense vs. Capital Expenditures – One of the greatest benefits of managed services is that it is a monthly operating expense. The outlay of capital expenditures for IT can become a double-edged sword. In addition to the depreciation, you also have expenses to maintain–and then even more costs when it breaks down. Frequently, the timeframe associated with an IT capital expenditure is drastically shorter than planned, and equipment becomes outdated too quickly. This type of “what-if” analysis will clearly illustrate the ROI associated with managed services.
  3. Consistency of Operations & Productivity – Beyond the reduction in downtime is the improved benefit of continued productivity. Consistent operations enable your entire staff to be more productive in their jobs since their systems remain up and running–helping you streamline operations throughout your company. 

Intangible ROI Benefits

  1. Peace of Mind – This may not have a dollar sign attached to it, but the removal of IT stressors and the knowledge of improved cybersecurity can drastically improve the entire synergy of your workforce.  
  2. Employee Retention – You may not know exactly how much turnover you have experienced because of frustrations over technical issues. This type of turnover can be associated with every position, including IT, but particularly in clerical jobs and sales. Turnover may have direct costs related to attracting new hires, training, ramp-up, and so forth. 
  3. Improved Team Building – With more productive employees, they will begin to trust the technology, particularly in team coordination and communication. It will also have a significant intangible improvement in attitude and dedication to their jobs and the company.

Measuring ROI can be a challenge in any area, but in the case of managed services, the difference to the bottom-line, the scalability of the services, and the overall atmosphere of your company is worth the investment. Contact our IT experts at MidnightBlue to guide you through the business continuity, technological advancements, and opportunities your small and medium-sized business will need now and in the future.