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Managed IT Services Business Model

LG Networks, Inc. > Managed IT Services Business Model


Managed IT Services Business Model

When it comes to information technology, managed IT services are one of the best business models to use in order to accomplish long-term objectives. Often regarded as the most effective form of information technology services, managed IT services can provide almost any business with a wide range of different benefits. A managed services model is a very effective method for both organizations and their vendors that allow for a cost-effect and productive approach to a company’s technology. By not using managed IT services, a company will have a more difficult time being successful. Below is an outline of the most effective characteristics of a useful managed IT services business module:

• In a managed IT services business model, the vendor, also known as the service provider, is completely responsible for specific information technology operations, project deadlines, and final deliverables.
• Frequently, the managed IT services provider will be the sole decision maker when it comes to providing and agreeing on a specific deliverable.
• The majority of the time, a project budget will be based on the number of IT professionals working on the assignment, the length of the project or the extensiveness of the specific project.
• When a budget is determined on a particular project, it will be a set, fixed price where the managed IT services provider will be able to decide on the total personnel number that is required to complete the project. While a fixed price can have its own advantages, there are a few downsides to this type of budget. For instance, a final deliverable might not always meet a specific deadline.
• Generally, a managed IT services model will be used when the scope of a project can be clearly outlined and identified.
• In order for this specific model to be effective, the service provider needs to have a complete understanding of the client’s computer system and applications. Not only that, but a client will need to have complete confidence that a managed IT service provider will be able handle specific IT duties and responsibilities.
• The service provider will usually be in charge of selecting certain resources, while also taking responsibility for client expectations.
• Managed IT services are usually done onsite at the client’s location or offsite at the provider’s location.
• This business model is typically embraced by a business as an extension of a current staff agreement.

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