Five myths about managed services

Founded in 1976, the CGI Group is one of the world's largest independent providers of IT and business process services. With 91,000 consultants and experts worldwide, CGI offers a broad portfolio of services - from strategic IT and business consulting to system integration, managed IT and business process services through to intellectual property solutions. The company notes that the outsourcing of IT services has evolved into various forms of cooperation for managed services, which have become an integral part of the modern IT landscape. However, there are still persistent myths about the alleged dangers and risks involved. According to CGI, however, they do not stand up to critical scrutiny:

1. Latent dependenciesSince the first outsourcing concepts, the term "vendor lock-in" has made IT managers' foreheads sweat. It describes the dependency on an external service provider from which there is no escape, or only a very expensive one. But as old as this term is, it is also outdated. Exit scenarios are clearly regulated in modern managed services contracts, for example with regard to data portability. They are also designed to be so flexible that any necessary adjustments to changing task profiles can be implemented quickly and jointly. Hybrid models with a clearly defined division of labor between internal IT and the managed services provider (MSP), in which critical IT components remain within the company, are also a proven means of combating dependencies.
2. Loss of control and managementIn the past, problems often arose when control functions were outsourced or not adapted to the new distribution of roles. A planned distribution of tasks, in which critical IT areas and the management and coordination of providers remain within the company, removes the fear of losing the ability to control and manage one's own processes. The type of contract design is also decisive here. The service level agreements (SLAs) set out in the contracts define the type and scope of IT services in detail, while clearly regulated escalation mechanisms describe how to deal with deviations. Regular reports and constant insight into the processes also ensure the necessary transparency. In this way, companies always keep the reins in their hands and at the same time benefit from the innovative strength and scaling advantages of external service providers.
3. Loss of internal know-howProbably the least well-founded fear is that of an outflow of internal IT expertise. In fact, the opposite is the case, and for a whole range of reasons. MSPs are not a replacement for the IT department, but an extension of it. Instead, they bring in external expertise which, if set up correctly, does not replace the company's internal know-how, but complements it with expert knowledge and best practices. This ensures a fruitful exchange through regular reviews, workshops and transparent communication channels, expands the knowledge spectrum of the IT department and also relieves it of many operational tasks. This frees up resources, allowing IT departments to concentrate on their core competencies, innovation initiatives and strategic IT planning within the company.
4. Loss of flexibility and agilityThe days when rigid, standardized contracts caused frustration are long gone. Instead, modern SLA models are designed from the outset to be highly adaptable. This makes it possible to react quickly to changing conditions or implement new ideas quickly. In addition, innovation initiatives often come from the MSPs themselves. Their quality results not least from the fact that they are always at the forefront of technological development - they must therefore be geared towards flexibility and agility per se. They are constantly researching and investing in new technologies, be it cloud computing, artificial intelligence or automation tools. Of course, the companies they work with also benefit from this.
5. Security concernsThe closer the cooperation between companies and external service providers, the more important the aspect of confidentiality and security mechanisms regarding the protection of sensitive data and information. The skepticism towards MSPs often overlooks the fact that data protection is in their own best interests. They invest at least as heavily in state-of-the-art security infrastructures and security teams as the companies themselves. Many MSPs have even turned this area of expertise into a business model in its own right and offer superior security solutions in accordance with the strictest compliance standards (ISO 27001 or GDPR, right up to solutions in the field of data protection). Sensitive data is therefore very often better protected by a specialized provider than by an internal solution.

"The myths surrounding managed service providers are the expression of an outdated understanding of IT services," explains Ralf Bauer, President CGI Germany. "Instead, modern managed services are based on the principle of cooperation at eye level. The service provider acts as a trustworthy, strategic partner that contributes its expertise without exerting pressure or taking control. Companies can only benefit from their expertise and the latest technologies they provide, while at the same time setting the direction."

Source: CGI Germany