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Strategic IT Outsourcing: Leveraging MSPs for Innovation and Growth

26/04/2024 minute read OneAdvanced PR

The landscape of IT outsourcing has significantly evolved, transforming from the traditional lift-and-shift models to a more strategic partnership that fosters innovation. Initially, outsourcing was primarily about transferring operations and IT infrastructure management to third-party providers, focusing mainly on cost reduction without much emphasis on strategic value or innovation. However, this approach has shifted. Today, organisations seek outsourcing partners that not only maintain their systems but also empower them to be at the forefront of innovation in their industries. In this blog, we'll discuss how the approach has changed and the benefits of this for organisations.

Previously, outsourcing was synonymous with the transfer of IT operations to external vendors, largely for maintenance and cost-efficiency purposes. Whist still beneficial, this model offered limited scope for strategic collaboration or leveraging new technologies to drive business growth.

More recently, IT outsourcing emphasises forming partnerships with  Managed Service Providers (MSPs) that serve as catalysts for innovation. These partnerships extend beyond mere maintenance, focusing on delivering constant value through cutting-edge solutions. Leading MSPs today are those who provide perpetual innovation of customer systems, leveraging the latest technologies to solve evolving business challenges for each unique customer. These providers possess deep industry knowledge and technological expertise which positions them as vital players in helping businesses stay competitive.

Hand-in-hand with this, MSPs are now taking a more consultative-led approach, where they are viewed as integral extensions of internal IT teams, fostering strategic partnerships rather than transactional service agreements. By closely aligning with businesses to understand their unique needs and challenges, MSPs tailor solutions that align with overall business objectives, ensuring a strategic fit.

The alignment of values and culture between MSPs and client organisations is therefore crucial for effective partnerships. A shared set of ethics, goals, and business practices enhances cooperation and operational efficiency, creating a conducive environment for mutual growth and innovation.

This shift in outsourcing to create value through innovation is also reflected by the move from evaluating performance based on standard Service Level Agreements (SLAs) to Experience Level Agreements (XLAs). While Service Level Agreements (SLAs) play a crucial role in maintaining operational standards, they often do not fully encompass the intricacies of the user experience. This oversight can lead organisations to deliver services that, while technically sound, fail to meet users' expectations, resulting in dissatisfaction and missed opportunities.

XLAs, on the other hand, shift the focus towards the quality of the end-user experience, evaluating a wide array of factors such as ease of use, speed of service, and the emotional impact of the interaction. A key feature of adopting an XLA framework is the commitment to continual excellence and improvement. By utilising XLAs to gather user insights, pinpoint areas for improvement, and iteratively refine service offerings, organisations can remain at the forefront of their industry and drive forward innovation. This proactive stance not only ensures IT services are competitive and align with user needs but also cultivates a broader culture of innovation within the organisation. This shift underscores the importance of value creation and strategic alignment in modern IT outsourcing relationships.

Outsourcing IT operations to Managed Service Providers (MSPs) that operate as strategic partners and emphasise perpetual innovation is immensely beneficial. These collaborations extend beyond simple maintenance to deliver continuous value, leveraging the latest technologies to address evolving business challenges. By adopting a consultative-led approach and focusing on XLAs, MSPs align more closely with the unique needs and expectations of their clients. This alignment not only ensures the delivery of services that meet user demands but also fosters a culture of innovation within client organisations. This strategic partnership model ultimately enables businesses to stay competitive, enhance operational efficiency, and achieve sustained growth by continually integrating cutting-edge solutions tailored to their specific objectives.

At OneAdvanced, we provide tailored IT services built in partnership with the customer to meet their unique needs. We will act as an extension of the team, working alongside you to support your organisation, delivering on XLAs and ongoing optimisation. Our dedicated team, rigorous processes, and unwavering focus on user experience set us apart.

Get in touch today to learn more.