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Global Work Glossary

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Table of Contents

What is the primary purpose of managed IT services?

Key benefits of managed IT services

Core components of managed IT services

Managed IT services vs. traditional IT models

How managed IT services improve cybersecurity

How to evaluate the effectiveness of managed IT services?

What are the potential cost benefits of managed IT services?

Challenges and considerations when adopting managed IT services

How do managed IT services fit into remote work environments?

Why are managed IT services important for small and medium-sized businesses (SMBs)?

How do managed IT services support IT compliance?

How Deel IT redefines managed IT services

What are managed IT services?

Managed IT services refer to the outsourcing of IT operations to a third-party provider, known as a managed services provider (MSP). These services cover a wide range of IT functions, including infrastructure management, cybersecurity, cloud computing, device lifecycle management, and help desk support.

By shifting IT responsibilities to an external provider, businesses can:

  • Enhance efficiency and reduce downtime
  • Strengthen security and compliance
  • Scale IT operations without hiring an in-house IT team

Modern managed IT services go beyond traditional break-fix support by proactively monitoring, securing, and optimizing IT environments. They ensure continuous IT performance and compliance, making them particularly valuable for global businesses, remote teams, and organizations with complex IT needs.

What is the primary purpose of managed IT services?

The primary purpose of managed IT services is to offload IT responsibilities to a specialized provider, allowing organizations to focus on their core business operations. Managed IT services help businesses maintain optimal IT performance, ensure data security, and reduce the risk of disruptions.

By proactively monitoring and maintaining IT infrastructure, an MSP prevents potential issues before they become significant problems. Additionally, managed IT services often provide access to advanced technologies and expertise that may be costly or unavailable to businesses if handled in-house.

Key benefits of managed IT services

Managed IT services offer businesses a practical way to manage their IT infrastructure without the cost and complexity of an in-house team. By outsourcing IT operations to an MSP, companies can access specialized expertise, strengthen security, and ensure systems run reliably. This allows businesses to scale their IT needs efficiently while reducing downtime, security risks, and operational overhead.

  • Cost savings – Reduces IT spending by replacing unpredictable capital expenditures with a predictable subscription model
  • Increased security – Implements proactive security measures such as real-time monitoring, endpoint protection, and compliance with regulations like GDPR and HIPAA
  • 24/7 support and monitoring – Ensures minimal downtime with continuous IT oversight and rapid issue resolution
  • Scalability and flexibility – Adapts to evolving business needs, enabling seamless IT expansion without infrastructure investments
  • Compliance and risk mitigation – Helps businesses adhere to industry regulations and avoid legal penalties
  • Optimized IT performance – Ensures devices, applications, and networks operate smoothly, reducing inefficiencies

Core components of managed IT services

MSPs offer a range of IT services designed to improve efficiency, security, and business continuity. While offerings vary, most providers focus on optimizing IT operations, protecting company data, and supporting the needs of modern workplaces, including remote and hybrid teams.

  • IT infrastructure management – Overseeing and optimizing servers, networks, and data centers
  • Cybersecurity and compliance – Implementing firewalls, antivirus solutions, identity access management (IAM), and compliance protocols
  • Device lifecycle management (DLM) – Handling the entire lifecycle of employee devices, from procurement to secure decommissioning
  • Cloud services and remote work support – Managing cloud-based IT environments and ensuring seamless remote collaboration
  • Help desk and end-user support – Providing 24/7 assistance for IT issues, troubleshooting, and software management
  • Business continuity and disaster recovery (BCDR) – Ensuring reliable data backup, recovery plans, and disaster readiness
  • IT strategy and consulting – Advising businesses on technology adoption, infrastructure scaling, and digital transformation

Managed IT services vs. traditional IT models

While in-house IT offers direct control, it requires significant investment in staffing, infrastructure, and ongoing management. Managed IT services, on the other hand, offer proactive monitoring, enhanced security, and access to specialized expertise without the overhead of building an internal team.

Feature Managed IT services Traditional in-house IT
Cost structure Subscription-based, predictable expenses High upfront costs, variable expenses
Proactive monitoring Yes – 24/7 system oversight No – often reactive issue resolution
Scalability Easily scales as business grows Requires hiring and infrastructure investment
Security and compliance Continuous updates and compliance tracking May require external audits and upgrades
Expertise and specialization Access to a broad team of IT specialists Limited to in-house expertise

How managed IT services improve cybersecurity

Cybersecurity is a major concern for businesses, and MSPs provide enterprise-grade security solutions that protect against threats like phishing, ransomware, and insider attacks. Key cybersecurity services offered by MSPs typically include:

  • Threat detection and response – AI-powered monitoring continuously scans for suspicious activity, identifying and mitigating cyber threats before they cause harm.
  • Identity and access management (IAM) – Controls system access through multi-factor authentication (MFA), role-based permissions, and user monitoring to prevent unauthorized entry.
  • Data encryption and compliance – Ensures sensitive data is encrypted both in transit and at rest, helping businesses comply with regulations like GDPR, HIPAA, and PCI DSS.
  • Incident response and recovery – Establishes structured response plans for security breaches, minimizing downtime and ensuring rapid data restoration.

How to evaluate the effectiveness of managed IT services?

To determine whether a managed IT services provider (MSP) is delivering value, business leaders and IT managers should track key performance metrics that measure system reliability, security, efficiency, and cost-effectiveness. The following indicators help assess the overall impact of managed IT services:

  • System uptime (%) – Measures the availability and reliability of IT systems. High uptime (e.g., 99.9% or higher) indicates that the MSP effectively prevents outages and minimizes disruptions.
  • Mean time to resolution (MTTR) – Tracks the average time it takes to resolve IT issues. A lower MTTR reflects faster response and issue resolution, reducing employee downtime and improving productivity.
  • Security incident rate – Measures the number of cybersecurity breaches, attempted attacks, or security vulnerabilities detected and mitigated. A low incident rate suggests strong proactive security measures and risk management.
  • Cost savings (%) – Compares IT expenses before and after implementing managed IT services. This includes reductions in hardware costs, staffing, and unplanned downtime. A well-optimized MSP should offer cost efficiency while maintaining high service quality.
  • User satisfaction score – Captures employee feedback on IT support quality, response times, and overall effectiveness. High satisfaction scores indicate that the MSP is meeting user needs and ensuring a smooth IT experience.

What are the potential cost benefits of managed IT services?

MSPs help businesses optimize IT spending by offering cost-efficient solutions compared to maintaining an in-house IT team. Cost advantages include:

  • Predictable expenses: Most MSPs operate on a subscription-based pricing model, allowing businesses to budget for IT services more effectively.
  • Reduced downtime: Proactive monitoring and maintenance prevent costly disruptions.
  • Eliminating the need for in-house IT staff: Businesses can save on salaries, benefits, and training costs associated with hiring IT professionals.
  • Access to advanced technology: MSPs provide cutting-edge tools and expertise, eliminating the need for businesses to invest heavily in IT infrastructure.
  • Scalability: Businesses can scale services up or down based on their needs, avoiding unnecessary expenses.

**See also: **Bulk-Purchasing Laptops? Cut Tech Depreciation Costs with Device Lifecycle Management

Challenges and considerations when adopting managed IT services

While managed IT services offer substantial benefits, businesses should carefully evaluate potential challenges before implementation. Key considerations include:

Vendor lock-in

Relying on a single provider for critical IT services can create dependency, making it difficult to switch providers without disruption. Some MSPs use proprietary tools or non-standard configurations that complicate migration. Long-term contracts may also limit flexibility as business needs evolve.

To overcome this choose providers with open integrations, clear data portability options, and flexible contract terms to avoid restrictive agreements.

Cost overruns

Unexpected costs can arise from services not covered under the initial contract, such as additional support hours, security upgrades, or compliance adjustments. Some MSPs may charge premium fees for incident responses beyond standard coverage.

To avoid unnecessary expenses define service level agreements (SLAs) with transparent pricing, clearly outlining scope, support limitations, additional costs, and regularly review usage and service requirements.

Service reliability risks

Not all MSPs provide consistent service quality across regions or time zones. Delays in response times, inadequate issue resolution, or lack of proactive monitoring can impact business operations.

To mitigate these risks assess the provider’s track record, response time commitments, and global support capabilities. Opt for MSPs with SLA-backed guarantees on uptime, resolution times, and customer support availability.

Security concerns

Entrusting sensitive data and infrastructure to an external provider introduces security risks, especially if the MSP lacks robust compliance measures. Poorly managed access controls, weak encryption, or insufficient security updates can expose businesses to cyber threats.

To overcome this make sure the provider follows industry-standard security practices, including data encryption, access controls, and regular audits. Verify compliance with regulations such as GDPR, HIPAA, or SOC 2 to mitigate legal and data protection risks.

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How do managed IT services fit into remote work environments?

Managed IT services play a critical role in ensuring secure and efficient remote work by providing seamless connectivity, centralized management, and cybersecurity protections. As businesses continue to adopt remote and hybrid work models, MSPs help organizations maintain IT stability across distributed teams.

One key function of managed IT services is securing access to company systems. MSPs manage:

  • Virtual private networks (VPNs) to encrypt remote connections and protect company data.
  • Cloud-based collaboration tools to support communication and document sharing.
  • Endpoint security to prevent unauthorized access to company devices.

In addition to connectivity and security, real-time IT support is essential for remote teams. Without on-site assistance, employees rely on MSPs for troubleshooting and software updates. 24/7 help desk support and remote monitoring ensure quick issue resolution, minimizing downtime and keeping employees productive.

Security is a major concern for remote work, with employees accessing company resources from various networks and locations. MSPs enhance security by:

  • Implementing multi-factor authentication (MFA) to prevent unauthorized logins.
  • Enforcing automated security updates to protect remote devices from vulnerabilities.
  • Applying data loss prevention (DLP) policies to safeguard sensitive company information.

See also: Remote Work Enablement: A Guide for Global Teams

Why are managed IT services important for small and medium-sized businesses (SMBs)?

Managed IT services are particularly important for small and medium-sized businesses because they provide access to enterprise-level IT support and expertise without the need to hire a full in-house IT team. SMBs often lack the resources to maintain a robust IT department, and MSPs offer cost-effective solutions tailored to their needs.

Managed IT services also allow SMBs to scale their IT infrastructure as their business grows and ensures compliance with relevant regulations. This combination of affordability, scalability, and expertise makes managed IT services an invaluable asset for smaller organizations.

How do managed IT services support IT compliance?

Managed IT services help businesses maintain compliance with industry regulations and security standards by implementing structured security measures, documentation processes, and regular audits. Compliance requirements vary by industry, with common frameworks including:

  • GDPR (General Data Protection Regulation) – Protecting personal data and privacy in the EU.
  • HIPAA (Health Insurance Portability and Accountability Act) – Securing healthcare-related data in the U.S.
  • PCI DSS (Payment Card Industry Data Security Standard) – Ensuring secure handling of credit card transactions.

To meet these regulatory requirements, MSPs provide:

  • Data encryption and secure storage – Protecting sensitive information from unauthorized access.
  • Access controls and identity management – Restricting system access to authorized users only.
  • Regular security audits and reporting – Identifying compliance gaps and mitigating risks.

See also: Compliance Issues When Providing Equipment for Remote Workers

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How Deel IT redefines managed IT services

Unlike traditional MSPs, Deel IT integrates IT asset management, security, and automation into a single, global-first platform. With Deel IT, companies can:

  • Deploy, secure, and manage IT assets across 130+ countries without administrative overhead
  • Automate device lifecycle management, from onboarding to offboarding
  • Ensure enterprise-grade security and compliance with built-in encryption and risk monitoring
  • Streamline IT and HR workflows, eliminating friction between IT, HR, and finance teams

Ready to enhance your IT strategy and support your global business? Book a demo today and discover how Deel IT can transform your managed IT services.