Cut IT Spend: Smart Managed Services for Manufacturing

For manufacturers operating on small profit margins, an unreliable computer system that slows down operations can hurt profits. Partnering with an information technology (IT) management service can control random IT expenses through fixed monthly fees versus large one-time costs. An IT manager becomes part of the internal team to handle everything from daily issues to long-term plans, allowing better budget forecasting.

The True Price Tag of In-House IT Systems and Support

The hard costs of an in-house IT department like hardware, software, wages are clearly big. But manufacturers greatly underestimate the productivity losses from inadequate IT:

Direct Expenses

• Software license and upgrade charges – Having to purchase expensive platforms like ERP, CRM tools can be costly upfront
• Servers, computers, devices – Keeping on-premise infrastructure maintained incurs giant capital costs
• IT staff wages and perks – In-house specialists’ salaries and health benefits contribue to rising OpEx

Indirect Productivity Impact

• Revenue losses from 2+ hours of downtime when a server fails or internet goes out – Lacking redundancy results in inability to track inventory, facilitate supplier orders during outages
• Management time spent addressing technology issues rather than business strategy – Department heads get dragged into contingency planning for half-day network failures
• Falling behind competitors using updated solutions like cloud-based analytics – Inability to leverage AI/ML due to aging on-premise systems stagnates growth

Absence of Specialized Skills

• No access to dedicated security and cloud architects – Relying on generalists exposes confidential data or compliance gaps
• Technical limitations of non-specialist in-house team – Lack of complex coding skills delays digital transformation

Paragraph expanding on hidden costs like distraction, opportunity cost, risk of data breaches, etc.

Why Use A Focused IT Management Agency?

Unlike break-fix IT companies that just address issues as they arise, IT managers structure contracts around regular monthly rates that allow accurate long-term budgeting and technology investment planning. By proactively overseeing infrastructure rather than waiting for failures, their clients gain:

Predictable Monthly Bills

• Fixed-fee billing controls unforecasted expenses – Pay the same amount year-round regardless of random outages
• No surprise emergency IT repair invoices – With proactive care, costs don’t balloon from major repairs
• Simple per-person/per-device charges – Makes cost-sharing with departments easy

Access to Advanced Expertise & Efficiency

• Get help refining overall company technology strategy based on objectives, not just handle trouble tickets
• Implement state-of-the-art technology like private cloud, AI, cybersecurity tools based on the latest protocols known to specialized MSPs but not generalists
• Engineers can focus on improving production systems rather than building servers

Evaluating IT Management Providers For Your Situation

Not all IT management groups equal. When researching options, manufacturers should weigh providers on:

Industry Expertise

• Deep knowledge of manufacturing systems, industrial IoT sensors, etc. that general IT firms lack
• Familiarity with safety and inspection regulations to ensure compliance

Swift Emergency Response

• Production stoppage emergency response processes like under 60 minute communication for full outage
• On-call schedule with engineering team that can remote access systems after-hours to diagnose issues in real-time

Proven Ransomware Protection

• Demonstrate layered defenses across endpoints, network, backup systems
• Conduct cybersecurity awareness training for employees

IT Roadmapping & Technology Growth Planning

• Help assess long-term objectives and integrate technology over multi-year modernization plan
• Provide network performance, application usage analysis to inform decisions

Conclusion

For manufacturers seeking an IT collaborator that intimately understands their budget constraints alongside precise industry needs, a specialized managed services provider can provide the expertise and support model to control unpredictable technology expenses over the long-term while enabling new capabilities. Reach out for a free consultation and environment evaluation.

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