6 Reasons Why SMBs Are Seeking Managed IT Services (Report)

managed it services growth

The demand for managed IT services is soaring, especially among small and medium-sized enterprises. This uptick is largely attributed to their increasing need for specialized IT solutions. Datto, a leading provider of cloud-based software and technology solutions for MSPs (Managed IT Service Providers), annually releases a comprehensive industry report. The latest edition, compiling insights from a survey of 1,575 MSPs worldwide, reveals key factors driving the increasing inclination of SMBs to rely on MSPs for their IT needs.

Top Motivations for SMBs Seeking Managed IT Services

In this blog, we will unpack the top motivations identified in the report. You can access Datto’s Global State of the MSP Report: Trends and Forecasts for 2024 here.

Why SMBs Choose Managed IT Services

#1 Increased Concerns About Cybersecurity Risks (54%)

It’s no surprise that businesses are struggling to get ahold of cybersecurity threats. They’re happening more frequently and have become more sophisticated, making it challenging for businesses to manage risks internally. Concerns about cybersecurity risks were cited as the biggest driving force towards outsourcing technology services. MSPs offer the expertise and resources necessary to address threats ranging from phishing to network intrusion.

#2 Growing Awareness About Cybersecurity (42%)

With heightened media coverage of ransomware attacks and stringent compliance requirements, businesses are more aware than ever of cybersecurity risks. It can no longer be swept under the rug. Every business regardless of their size or industry is a target. Those who choose to sit back are gambling with their business’s future and the odds are not in their favor. The good news is that more businesses are realizing the need to implement security provisions such as MFA and network monitoring. Leveraging MSPs helps them meet regulatory demands and improve their security posture, a prerequisite for obtaining cyber insurance.

#3 Managing a Hybrid Remote Workforce (47%)

The work environment looks a lot different than it used to. Despite calls to come back into the office, hybrid work is here to stay. Keeping employees connected and productive whether they’re in person or remote is essential. The shift to hybrid work environments necessitates flexible solutions, including collaboration software and cloud infrastructure management. MSPs are well-equipped to assist businesses in adapting to these changes.

#4 Need for Expertise Beyond Internal Capabilities (50%)

While in-house IT staff can be helpful for immediate troubleshooting, outsourcing gives a broader range of expertise, particularly beneficial for complex projects like cloud migrations and cybersecurity enhancements. As more businesses depend on technology for key functions, the family member who you hired to handle all things IT, won’t cut it anymore. Businesses who want to utilize technology to grow need to pull in extra help.

#5 Preference for Outsourcing Over Internal Management (34%)

Managing technology internally requires time, money, and the right people. The allocation of resources towards IT can divert attention and funds from core business activities. The appeal of outsourcing IT functions has become evident. Partnering with an MSP can drive strategic growth and alleviate the challenge of recruiting skilled professionals. This allows you to focus on what you do best, while being confident that you have the right support in place.

#6 Dissatisfaction with Previous MSPs (19%)

The final, yet equally significant, reason a business might seek out external support is the pursuit of a change, often driven by dissatisfaction with their current IT service arrangement. This scenario typically arises when businesses have had negative experiences with their previous MSPs, which could range from inadequate service levels, poor communication, to a mismatch in technological expertise or business values. These experiences demonstrate the need for careful selection when it comes to choosing a managed IT service provider, as the right partner can have a profound impact on the efficiency and success of a business’s IT operations.

Embracing Expertise, Security, and Flexibility

The shift towards outsourcing IT among SMBs reflects a strategic approach to IT management, emphasizing the need for expertise, security, and adaptability. Datto’s report offers insights for businesses considering this transition, guiding them towards making informed decisions in their IT strategy.

Do any of these reasons resonate with you? If you’re exploring the idea of partnering with a Managed Services Provider and want to understand how it can benefit your business, we’re here to help. Learn more about what a partnership looks like and how it can transform your IT management approach. Schedule a discovery call with us or reach out at sales@justinc.com for a personalized consultation.