Managed IT Services Costs: Complete Guide for Financial Companies
Table of contents
- What Are Managed IT Services?
- Factors That Affect Managed It Services Cost
- Tailored solutions for your business needs
- Managed IT Services Pricing Types
- What’s Included in the Managed IT Services Monthly Cost?
- IT Managed Services & Cost Savings
- Top 3 Tools for Which Financial Companies Need IT Managed Services
- More Reasons for Financial Institutions to Use an IT Managed Services Provider
- Tips for Choosing a Managed Services Provider
- Managed IT Services Costs: Conclusion
You’ve heard about the great benefits of IT managed services for financial organizations, so what’s holding you back from investing?
For many companies, it’s the price. There’s often an air of mystery surrounding managed services pricing, one that can feel frustrating to navigate if you just want to kick off a project or understand if a specific service will fit into your 2024 budget.
It makes sense to want to know the average cost for managed IT services, especially if, like most businesses, you’re looking for ways to reduce overheads and save money.
The great news is that managed IT services have the potential to save you money long-term and help you get the most out of the tools you use every day, such as Calypso banking software, and there are many services that likely do fit into your budgets.
This guide breaks down everything financial companies need to know about managed IT service costs.
What Are Managed IT Services?
Put simply, managed IT services are responsibilities carried out by a third-party organization, which is known as a managed service provider or MSP.
The idea behind managed services, including managed IT services, is to let a specialist handle certain tasks to reduce costs, provide a higher quality of service, and free up internal teams to handle activities that are more specific to their roles and areas of expertise.
Factors That Affect Managed It Services Cost
One of the primary questions leaders and executives at financial organizations ask when considering managed IT services is, “How much does this all cost?”
As is the case with many professional services, the average cost of managed IT services varies based on a wide range of factors, including those listed below:
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Service Time
“Service time” refers to the length of time it takes the MSP to deliver their services. The more time-consuming the process and the more resources it requires, the more costly it is likely to be.
Keep in mind that some MSPs charge a flat fee for their services, which can help to offset high costs for longer service times.
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Number of Users
As the number of people who use your company’s IT system goes up, so does the likelihood that you will experience downtime and other issues that interfere with productivity and performance. With this in mind, it makes sense that a higher number of users will end up with higher costs for managed IT services.
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Amount of Data
Similar to the point made above, the amount of data stored on your services can also influence the cost of managed IT services. The type of data plays a role as well, as different data types require different levels of security.
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Technology Complexity
The complexity of your technology matrix – all the devices your team uses and the various ways in which they interact – will also affect your managed service providers rate. As the variety of your devices increases, so does the amount of work the MSP has to do to keep everything running smoothly, and so does the cost of their services.
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Partial vs. Fully IT Managed Services
Managed IT services for finance companies come in two primary forms: Partial and fully managed services.
If you already have an in-house IT team, you might choose partially IT managed services to reduce costs. Since you have professionals who can help with everyday issues, you likely don’t need as much support from an MSP.
Conversely, if you don’t have any in-house IT staff, fully managed IT services will ensure all your bases are covered and that you can get help as soon as you need it. Fully managed IT services, of course, are more costly than partially managed services.
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Additional Services and Upgrades
At various points in time, your technology matrix will require additional services not included in your plan or upgrades to help it run more efficiently. These bonus services and upgrades will likely cost extra; they may either be one-time charges, or they may add to your monthly bill.
Tailored solutions for your business needs
Choose a reliable IT managed services provider for your financial organization
Managed IT Services Pricing Types
There are a few different ways in which your financial company can be charged for managed IT services. Here are some of the most common options:
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Per User
Many managed IT service providers use a per-user pricing model when calculating the cost of their services.
Per-user pricing involves paying a monthly fee for each person who uses your company’s technology matrix. Basically, if they could potentially need IT support, they’re considered a user.
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Per Device
In some cases, MSPs prefer to use per-device pricing.
As the name suggests, this approach charges a fee for each device your business uses, such as PCs, Macs, laptops, iPads, tablets, and mobile devices.
As with per-user pricing, you’ll want to make sure every device that could potentially be serviced by an MSP is included.
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Unlimited
Some IT managed service providers offer unlimited pricing. With this model, you get unlimited IT services in exchange for a flat monthly fee. Some of the services you pay for with this fee include round-the-clock IT support, regular updates, ongoing system maintenance, and regular backups.
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A La Carte
Like an a la carte menu, an a la carte pricing model allows you to choose from a list of services and only pay for the ones you want and need.
If you’re worried about overspending on services that aren’t relevant to your business, a la carte pricing could help you save money. However, if you find yourself needing additional services later, you could end up spending a lot more.
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Tiered
With tiered pricing, you can purchase an IT service package at a price point that works for your budget. Each package provides a different level of service, with the most comprehensive being the most expensive.
What’s Included in the Managed IT Services Monthly Cost?
Naturally, if you’re going to be spending thousands of dollars per month on managed IT services, you’ll want to know what comes with that price.
While every MSP has their own rules and guidelines when it comes to inclusions, you can typically expect to see the following included in your package:
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Cloud Services
Generally, managed IT service companies provide cloud-based services, from file sharing and email hosting to data backup and storage and web hosting.
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Monitoring Services
One of the biggest components of managed IT services is continuous monitoring. Typically, monitoring services include 24/7 server, network, and application supervision.
This round-the-clock monitoring gives you peace of mind and alerts you to problems that may cause downtime so you can address them as quickly as possible.
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Security
With cyberattacks on the rise worldwide, security is a top priority, especially for financial companies that regularly handle sensitive data for their customers and clients.
Managed service providers are well aware of the need for robust security protocols. That’s why they offer a range of security services, such as firewall protection, data encryption, and virus and malware protection.
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Support
Issue detection is just one part of the equation. IT managed service providers also provide support to correct issues promptly and prevent them from occurring again in the future.
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Disaster Recovery
In addition to support for everyday, minor issues, managed IT service providers will also offer disaster recovery services. If you experience an outage or another disaster, your MSP will work hard to get your network up and running – and reduce the risk of another disaster happening.
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Reporting
System reporting helps you track system performance and security. This data, in turn, makes it easier for your MSP to troubleshoot future problems and get your technology matrix back on track as quickly as possible.
IT Managed Services & Cost Savings
Some people initially balk at the idea of paying for managed IT services. What they often don’t realize, though, is that investing in managed services can deliver significant cost savings in the long run.
The following are some specific ways that your financial organization can save money with managed IT services:
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Fewer IT Costs
Think about how much you have to spend every time something goes wrong with your company’s technology network. Not only do these malfunctions seem to always come at the worst times, but you also might not always have sufficient funds to deal with them.
When you pay for managed IT services costs, you’ll face fewer financial surprises when you need repairs or support. It’s also easier to budget since you’re paying a set amount each month.
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Fewer Hiring Expenses
Many businesses choose to work with a managed service provider because it saves them from having to spend so much money on recruiting and building an IT department.
Between the costs associated with advertising the job and interviewing candidates, as well as the cost of paying a salary and paying for equipment and office space, hiring an IT team is expensive.
An MSP often costs far less than recruiting and hiring multiple individuals to run your company’s IT department.
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Increased Efficiency
When you work with an IT managed service provider, you can get help right away if something goes wrong with your company’s network, which minimizes downtime and interruptions. As a result, it’s easier for you to keep the company streamlined and running smoothly – and help your employees be more productive.
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No Hidden Costs
Part of agreeing to work with a managed service provider involves signing a contract that details the cost of the services and what’s included in that price. This contract helps you to avoid surprise expenses and makes it easier for you to manage your company’s finances.
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Long-Term Maintenance Solutions
It’s easy to neglect the devices that make up your financial company’s technology matrix, especially when you and your staff have so many other responsibilities to worry about.
An MSP can help you avoid this issue, though, by providing long-term maintenance services and making sure you’re sticking to a consistent schedule. With their help, you can trust that your devices are continuously updated and working as they’re supposed to.
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Superior Support
An IT managed service provider gets to know your company inside and out. They understand the IT issues you’re most likely to face, and they can create a plan to help you avoid them.
If you’re looking for superior support from a dedicated team (without the added costs associated with hiring multiple IT department members), working with an MSP is the way to go.
Top 3 Tools for Which Financial Companies Need IT Managed Services
Virtually any financial company, regardless of its size or the specific services it offers, can benefit from managed IT services. However, those who use the tools listed below can experience significant advantages:
1. Adenza Calypso
The Calypso financial services platform is one of the leading solutions for a variety of financial companies, including the following:
Broker-Dealers
Corporates
Exchanges & Clearing Houses
Global, Regional, & Central Banks
Insurance Firms & Asset Owners
Investment Managers
Securities Service Providers
Calypso is an end-to-end solution trusted by more than 60,000 users. It helps financial institutions navigate trading, risk management, and compliance more effectively. Because of its immense capabilities, many users benefit from working with a managed service provider when utilizing this solution. Partnering with experts helps them to get the most out of it and see the best results.
2. Salesforce
Many financial services providers – including banks, insurance companies, and wealth and asset management companies – use Salesforce to help with workflow automation and data analysis.
Salesforce is a robust solution trusted by businesses across a range of industries, so it makes sense that financial companies relying on this tool would need help from an MSP to ensure they’re using it correctly.
3. Murex
Banks worldwide – including 65 of the top 100 global banks – deploy Murex to accelerate their digital transformation process and ensure compliance with the latest industry regulations. This solution is designed to help banks take advantage of the newest trading opportunities and expand their reach while remaining competitive and resilient.
More Reasons for Financial Institutions to Use an IT Managed Services Provider
Do you need more motivation to invest in managed IT services for your Calypso consulting needs (or help with any other technology your organization relies on)?
Here are a few extra benefits you can experience when you use a managed services provider:
Access to Experts
Partnering with a managed service provider gives you and your staff access to experts in the information technology sector.
This access ensures you’re getting the most up-to-date and accurate information. It also ensures that when you need to resolve a problem, it will be handled quickly and by a competent professional.
Better Scalability
IT Managed service providers can help your infrastructure to grow with your business.
As you expand your offerings and gain new team members, an MSP will ensure your network keeps up. They can also ensure you remain secure and compliant.
Access to Superior Tools
Not only do you get access to skilled experts when you work with an MSP, but you also get access to the latest tools and technologies. MSPs work hard to stay informed about the best and newest solutions on the market, and they know when to use them to help your business achieve its goals.
Ensure Regulatory Compliance
IT Managed service providers are also committed to staying informed about the latest regulations and guidelines that apply to their clients – including clients like you who work in the heavily regulated financial industry.
They can help you remain compliant with all rules and regulations, saving you from potential security lapses and the fees and penalties that can result from those lapses.
Better Scalability
IT Managed service providers can help your infrastructure to grow with your business.
As you expand your offerings and gain new team members, an MSP will ensure your network keeps up. They can also ensure you remain secure and compliant.
Tips for Choosing a Managed Services Provider
Are you sold on the idea of hiring an IT managed services provider? If so, your next task is to find the best fit for your company.
Asking the following questions will help you choose the right managed services provider:
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Do They Offer Round-the-Clock Support?
You never know when something could go wrong with your company’s network – and you don’t want to leave your customers without access to their accounts or your network vulnerable to security issues, right?
Working with an MSP that offers round-the-clock support will allow you to rest easy, knowing that if something terrible happens you can get help as soon as possible.
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Do They Offer Comprehensive Cyber Protection?
Financial institutions are well aware of the importance of a strong cybersecurity plan. Your MSP should be as well.
Be sure to talk to a potential IT managed service provider about their cyber protection offerings and make sure they have a comprehensive solution tailored to your company’s exact needs.
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Do They Offer Customizable Solutions?
Speaking of solutions tailored to your company’s needs, it’s best if you can collaborate with an MSP that is willing to customize its offerings. There’s no one-size-fits-all approach to managed IT services, and you need a provider who is willing to make adjustments to their plans to provide you and your team with the support you want and need.
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Do They Understand Industry-Specific Compliance Requirements?
Make sure the managed service provider you’re thinking about working with has an in-depth understanding of the compliance requirements businesses in the financial sector must meet. The better versed they are in the latest laws and regulations, the better off your company will be.
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Do They Offer Multiple Communication Methods?
In addition to being readily available and offering round-the-clock support, it’s also critical that you work with an MSP that offers multiple communication methods. In other words, if you need help, can you reach them by phone, email, or instant message?
Find out what their average response time is, too, and make sure you choose a provider that has a habit of responding promptly to their clients’ needs
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Do They Provide a Superior Client Experience?
An essential component of a positive client experience is prompt responses. However, that’s only one piece of the puzzle.
There are many other steps a managed services provider can take to deliver a superior experience; from the additional services they offer to the way they communicate with clients.
Check out case studies and reviews to learn about the results a particular MSP provides and make sure they align with your expectations.
Managed IT Services Costs: Conclusion
There’s not just one answer to the question, “How much should managed IT services cost?”
However, if you keep the factors and suggestions shared above in mind, you’ll have an easier time finding a managed services provider that fits your budget and provides the level of service your financial company needs.
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