Will Outsourcing Help Desk Save Money for Managed Service Providers?

The Managed Service Provider (MSP) industry is booming. According to Market.Us, the global managed services market’s value was USD $278.9 billion in 2022 and is projected to reach USD $834.7 billion by 2032. But with this rapid growth comes the pressure to optimize costs and deliver exceptional service.

Many MSPs are exploring outsourcing their help desk functions as a strategic solution. But can outsourcing really save you money? Let’s find out the cost-saving potential of an outsourced help desk.

The Importance of Help Desk Support in MSP Operations

Managed Service Providers (MSPs) act as trusted partners for business. You take care of IT infrastructure and offer ongoing support. This enables clients to focus on core operations without managing complex IT systems. 

At the heart of an MSP’s service delivery lies the help desk support. It’s the frontline for client interactions. It serves as a single point of contact for all your IT-related issues and inquiries. An MSP Help Desk Outsource plays a critical role in ensuring the smooth operation of your business by: 

1. Maintaining Client Satisfaction

Prompt and efficient resolution of client issues minimizes downtime and fosters trust. A proactive support can identify potential problems and prevent you from disrupting business operations. As a result, a positive client experience leads to higher retention rates and referrals.

2. Maximizing Operational Efficiency

A well-structured ticketing system streamlines issue tracking and resolution, saving time and resources. Skilled IT experts are also quick to resolve problems with accurate results. It reduces the need for escalation. 

3. Delivering Value to Clients

A responsive help desk ensures clients receive the support they need. It is a platform for educating clients on best practices and new technologies. Proactive measures further help your clients optimize their technology investments which affects their general IT posture.

How Can Outsourcing the Help Desk Save Money for MSPs?

For Managed Service Providers (MSPs), every dollar saved can boost your market position. Hence, outsourcing your support desk is a strategic move as it offers significant cost savings and efficiency gains. To guide you further, here’s a walkthrough on why you should choose to outsource your help desk support.

Saved on Overhead Costs

• Salaries and Benefits: Building an in-house support desk team entails hiring qualified technicians. This internal decision may lead to payroll, benefits, and training expenses. With outsourcing, these costs can be eliminated and replaced with a predictable monthly fee.
• Office Space and Equipment: Maintaining a dedicated IT support workspace is expensive. With necessary equipment like computers and software licenses, expenses add up. Outsourcing comes to the rescue by taking over, taking away the need for a physical work setup.
• Software and Technology Costs: It’s costly to update help desk software and ticketing systems. Meanwhile, outsourced help desk service providers often invest in reliable platforms and infrastructure. You pass on these benefits to your clients without the upfront investment.

Increased Scalability and Flexibility

• Variable Demand: Your client bases can fluctuate and their needs change as well. Outsourcing allows you to scale your help desk support up or down based on real-time needs.
• 24/7 Support: Offering internal 24/7 support requires overtime pay and added staff. Outsourced providers always offer round-the-clock support as part of their service.
• Flexibility: With outsourcing, you can choose services that tailor your business needs. While with in-house desk support, you must pay your staff per hour.

Access to Specialized Expertise

• Broader Skill Set: High-quality outsourced teams have IT experts with diverse skill sets. Because of this, they can effectively manage a greater variety of client issues. It eliminates the need for in-house specialists for every domain.
• Staying Current: Although technology evolves rapidly, offshore outsourcing companies stay updated with the industry’s best practices. It ensures your clients receive the most relevant and efficient support.

Money Savings in Employee Recruitment, Onboarding, and Training

Building an in-house help desk team requires a significant investment in personnel. By outsourcing this to a qualified provider, you can generate cost savings in many areas:

Decreased Recruitment Cost 

The process of finding qualified support desk technicians can be time-consuming and expensive. It includes advertising costs, screening resumes, and conducting interviews. It could also be possible to use a recruitment agency. Outsourcing removes these internal costs and allows you to focus on core activities.

Eliminated Onboarding Expenses

Onboarding new employees involves training them about the business. It entails discussing company policies, procedures, and specific help desk software. Gaining proficiency in managing client issues also takes time. Outsourced support desk providers usually handle all onboarding for their technicians. This process reduces your workload and associated costs.

Optimized Training Costs

Keeping your help desk staff updated on the latest technologies is expensive. It requires ongoing training and development, which covers investing in training materials, instructor fees, and employee downtime. Reputable outsourced providers value continuous learning for their technicians. They invest in training programs and industry certifications, ensuring clients receive support from skilled personnel.

According to the Society for Human Resource Management, the average cost to hire a new employee can be as high as $4,683. For small MSP businesses, this amount is substantial especially when resources are already tight. Outsourcing your IT support eliminates these internal expenses and frees up resources. You can invest these instead in other areas of your business.

Save On In-House Spending

Maintaining an in-house help desk involves a range of ongoing operational expenses. Outsourcing this area offers a strategic advantage. It reduces your in-house spending in several areas:

Reduced Salary and Benefit Costs

Hiring skilled help desk technicians necessitates competitive salaries, benefits packages, and payroll taxes. Outsourcing eliminates these expenses and replaces them with sustainable payments. Predictable monthly fees take over based on the agreed-upon services.

Eliminated Office Space and Equipment Costs

Maintaining a dedicated help desk workspace requires specific expenses. These are rent, utilities, furniture, computers, and software licenses. Outsourcing removes this burden and allows efficient use of office spaces.

Minimized Software and Technology Costs

Help Desk operations rely on specialized software. These tools are for ticketing systems, remote access tools, and knowledge base management. These can be expensive to buy, maintain, and upgrade.

Round the Clock Support Without Additional Costs

Nowadays, IT issues can arise anytime, anywhere. Offering 24/7 help desk support is a critical differentiator for MSPs. You want your clients to receive prompt support regardless of the time zone or situation. However, providing round-the-clock support can be expensive due to many factors. This includes the night pay differential. 

Through outsourcing you can overcome this challenge. Outsourcing companies have access to globally distributed teams. Hence, you can provide round-the-clock assistance without bearing the expenses associated with hiring in-house overnight staff.

Increased Efficiency

In-house desk support may allow a certain level of control. However, it may not always translate to optimal efficiency. Conversely, outsourcing your help desk provides a range of efficiency benefits, such as:

• Improved First-Call Resolution Rates. Experienced outsourced help desk teams have higher first-call resolution rates. It means they can resolve a client’s issue during the first contact. Thus, it eliminates repeat calls and escalations.
• Standardized Processes and Automation. Reputable outsourced help desk providers apply an Efficient and Reliable Outsourcing Process. They also use automation tools to streamline issue resolution. It warrants consistency in service delivery and reduces human error.
• Access to a Broader Skill Set. Help desk support providers often have a wider pool of IT experts with diverse skill sets. It enables them to manage a broader range of client issues. 

Overall Support Quality

Outsourcing your help desk can enhance the support quality for your clients. In-house teams may hardly cover all technological domains. This is the reason why you look for external expertise. Outsourced teams invest in advanced tools and technology, enabling faster issue resolution.

Furthermore, outsourced help desk providers maintain standardized quality control processes. It ensures consistent service delivery and high client satisfaction. This procedure leads to increased client loyalty and an increased competitive edge.

Time is Money: Focus on Core Competency

Outsourcing your help desk enables you to focus on your core competencies. It allows you to boost efficiency and strategic growth, freeing up resources for developing new services or expanding your client base. Outsourcing also improves internal collaboration. It leads to a more productive work environment and increased profitability.

How Much Can MSPs Save by Outsourcing? 

The tangible advantages of outsourcing help desk support for MSPs are clear. A trusted partner can deliver financial benefits for your MSP business. Here’s a glimpse into the compelling metrics:

Reduced Payroll Costs

Partnering with an outsourced help desk provider leads to payroll cost savings. In comparison to building and maintaining an in-house team, outsourcing is better. It translates to financial gains for your MSP business.

Enhanced Client Satisfaction and Growth

Outsourcing partners often boast skilled workforces with high employee satisfaction. It leads to superior client experiences, reflected in higher Net Promoter Scores (NPS). It’s a key indicator of client loyalty and growth potential. Plus, many MSPs who outsource report significant year-over-year growth in profitability.

Business Continuity and Disaster Recovery

Outsourcing develops comprehensive plans to ensure quick recovery from disruptions. It minimizes downtime and maintains operational efficiency. These figures show that the right partner can improve your business. They position your MSP for sustainable growth, from financial performance to client satisfaction,

Examples of Companies Who Saved with Outsourcing 

Several MSPs across industries have achieved significant financial benefits through help desk outsourcing. Here are some general examples:

Doubled Team Size with Reduced Costs

A recruitment software company in Hong Kong called Talkpush leveraged STAFFVIRTUAL’s outsourcing services. They used this to build a client services team. This strategy resulted in doubling their team while achieving significant cost savings. It also boosted their operational efficiency and fostered a more positive work environment.

Focus on Core Business and Growth

In The Know, a podcast marketing company, found a strategic advantage in outsourcing with STAFFVIRTUAL. The CEO dedicated more energy to core business activities by delegating non-core functions. This focus allowed the company to scale and achieve its growth objectives.

Increase Support Team 

Novatech is a Managed IT Services and Technology Solutions provider in Nashville, Tennessee. They achieved substantial savings using STAFFVIRTUAL’s outsourcing strategies. They expanded their technical support team while cutting operational costs by 70%. This enabled them to redirect savings into innovation. 

These examples illustrate your potential to achieve financial gains and operational improvements. The magic lies in partnering with a qualified outsourcing help desk provider.

The Right Outsourcing Partner Saves MSP Costs

The Managed Service Provider (MSP) landscape is very competitive. With this, outsourcing your help desk support is more than just a cost-saving move. It’s also a wise decision to make you stand out among the competition.

Partnering with an outsourced provider like STAFFVIRTUAL offers a multitude of benefits. We provide tailored solutions to help businesses improve service quality and streamline processes. Take your MSP business to the next level with our outsourcing solutions. Schedule a free consultation with us today.

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Sources: 

Managed Services Market Size, Share | Market.Us

SHRM HR Benchmarking Reports | SHRM

Five Indicators That You Need To Outsource | Forbes

The Real Costs of Recruitment | SHRM

How Much Do Outsourced IT Services Cost in 2024? | Encomputers

MSP: In Step with the New Economy – Careers & Internships | SP College