Managed Services: what needs do they address?

Managed Services: what needs do they address?

What types of companies are managed services aimed at? Do you observe significant variations depending on the industry sector in which they operate?
Managed services are aimed at all types of companies, from SMEs to large multinational corporations.

The smaller the company, the more it has an interest in outsourcing certain tasks or entrusting its ICT services to professionals. This is the royal road to accessing data centres, service packages, and even “Software as a Service”.

For their part, CIOs managing the information systems of large organisations are increasingly questioning the relevance of keeping in-house activities and services that can now be found on the market, with a higher level of quality and – why not – at an optimised cost. The approach here is sometimes more selective and gradual than a full-scale outsourcing in one go.

It has already been some time since this step was taken for printing services. A need that is now almost universally outsourced, as it is a non-essential activity for the survival of the company. Almost all retail banks, for example, have outsourced the printing of their account statements, even though these contain confidential information. This trend is extending to other services: employees are no longer asked to mow the lawn or clean the premises. These tasks are entrusted to companies specialised in them. Why maintain an activity internally when specialised providers exist?

As for the industries in which our clients operate, they are all concerned by the outsourcing of services. The public sector, despite its specific budgeting and procurement policies, also shows strong interest in managed services. We can therefore affirm that we are not dealing with a passing trend, but with a real transformation in the way ICT services are consumed.

What needs do managed services address? Is cost reduction a good reason for companies to outsource?

Indeed, among the reasons that push companies towards outsourcing, cost impact appears frequently. However, a distinction must be made between cost control and cost reduction. Cost reduction mainly results from economies of scale arising from the pooling of multiple clients’ needs.

In addition, Proximus NXT, within its outsourcing contracts, commits to guaranteeing a cost for a defined scope and provides a service catalogue priced either per user or per service unit. Thus, from the outset, the client knows exactly how much each user will cost and can plan the budgetary commitment for each additional position with unprecedented accuracy. This allows for perfect control of ICT costs. Moreover, in the case of an integrated cloud offering, the cost covers the entire ICT chain – from electricity consumption to updates and maintenance contracts – in a completely transparent way for the company.

One of the key questions arising during structural investments, such as IT equipment, concerns financing. Since the emergence of cloud computing and related services, financing investments through operational expenditure (Opex) instead of capital expenditure (Capex) allows companies to avoid immobilising capital for ICT investments. Our outsourcing solutions enable clients to move from Capex to Opex, and this increased flexibility is very attractive to many companies today.

Managed services therefore provide companies with better cost control and a new approach to financing investments. What about efficiency gains?

By relying on Proximus NXT’s outsourcing services, the CIO benefits from guaranteed service continuity, providing unmatched comfort and operational efficiency. Freed from operational maintenance tasks, the CIO – an expert in the company’s business – can focus on transforming needs into value-creating tools.

Thanks to the economies of scale generated by pooling, clients also gain access to cutting-edge technologies that are complex, difficult to implement, and costly to maintain even for large organisations. Through “on-demand cloud”, a company can access massive environments provisioned when unusually large needs arise and decommissioned when no longer required, avoiding heavy investment for temporary usage. Application testing, for example, is particularly suited to this consumption model.

One of the major strengths of the cloud is its flexibility, although this is probably the least highlighted aspect for clients. Cost, power, and performance are often mentioned, but a fundamental aspect of our economy is often overlooked: elasticity.

Compared to traditional project deployment, cloud-based deployment reduces timelines from several months to just a few hours. Once the transition to the cloud is complete, additional infrastructure for a new application, for instance, can be operational almost immediately after the decision is made. Conversely, when computing power is overdimensioned – for example when a major project ends – it is just as easy to scale it down. Cloud elasticity therefore works both ways, allowing companies to adjust resources according to increases or decreases in activity. Moreover, this is guaranteed contractually.

In addition to efficient operational management, do you therefore provide a significant technological advantage to your clients?
We provide a clear technological advantage to our clients. Our cloud platforms are continuously updated and incorporate technological advancements, which are rigorously tested before going live. Three years after the initial investments, Proximus NXT’s cloud is already at version II, following a complete overhaul. Furthermore, we only work with market leaders. Proximus NXT is an integrator that has been distributing and deploying the best manufacturers’ hardware for decades, and the same proven products are installed in our data centres.

What quality guarantees and level of commitment can a client expect from a managed services provider?

Beyond contractual reversibility requirements and the implementation of penalties, the highest level of commitment a client can expect from a provider is the delivery of a high-performing service that meets their business needs. A client satisfied with the services provided will be more likely to grow in their market, thereby strengthening the relationship with their provider. Fulfilled promises are the foundation of a long-term relationship. In such a case, a win-win partnership is established, where the client’s growth supports the provider’s growth as well.