Story image

The importance of closer relationships with external IT support

23 Jul 2018

The results of CSG’s recent customer survey revealed continued growth in the managed services provider (MSP) market, showing that the majority of small-to-medium (SMB) New Zealand businesses are outsourcing their business technology requirements to external providers, with many of these using more than three different providers.

The findings show that 74% of customers outsource their technology requirements to an external provider - of these, 35% use more than three external technology providers, with 26% using five or more.

Almost one quarter (22%) of small businesses with less than 20 employees use more than three vendors, but 93% of them spend less than $50k on technology support annually.

39% of businesses with 20-99 employees use more than three vendors, with 57% of these spending less than $50k on technology requirements annually.

A 2016 report presented to the Ministry of Business, Innovation and Employment (MBIE) by Small Business Development Group found that innovation continues to be a challenge for SMBS, many of which are not engaged with or knowledgeable enough about technological developments to effectively implement and use them.

The report also noted that keeping up with technology can also bring additional unexpected challenges and costs associated with things like security, upgrades and training.

The need for partners who can fit an advisory role is highlighted as CSG country manager Warwick Beban suggests that SMBs should focus their resources on fewer providers who can give a wider range of support.

“Faced with an increasingly rapidly evolving technological landscape, small businesses are often overwhelmed when it comes to implementing and managing technology solutions, with many having resources for just one IT manager, or even just a CEO wearing many hats,” he says.

“If small businesses spread their limited resources too thinly across multiple technology providers, they’re unlikely to be getting bang for their buck. Consolidating their technology requirements to fewer than three providers allows businesses to accurately track their technology spend and secure discount deals from providers offering multiple solutions. Small businesses can ensure they’re getting the exact services they need and develop lasting and trusted relationships with providers who have the businesses' best interests at heart.”

Other key findings show the ballooning number of external providers for medium-sized businesses. CSG found 61% of businesses with 100-299 employees use more than three vendors. This figure rose to 80% and for businesses with 300-499 employees and 100% for businesses with more than 500 employees.

Microsoft appoints new commercial and partner business director
Bowden already has almost a decade of Microsoft relationship management experience under her belt, having joined the business in 2010.
Zoom’s new Rooms and Meetings features
Zoom has released information about the upcoming releases for its Rooms and Meeting offerings for 2019.
Aussie company set to democratise direct-to-orbit IoT access
Adelaide-based Myriota has released a developer toolkit that has been trialled and tested by a smart waste management platform.
Apple's AirPods now come with 'Hey Siri' functionality
The new AirPods come with a standard case or a Wireless Charging Case that holds additional charges for more than 24 hours of listening time.
Dynatrace takes pole position in APM Magic Quadrant
It placed highest on Ability to Execute and furthest on Completeness of Vision in the 2019 Quadrant for Application Performance Monitoring (APM).
HCL and Xerox expand strategic partnership
Under the terms of the agreement, HCL will manage portions of Xerox’s shared services, including global administrative and support functions.
Avaya expands integration with Google Cloud AI
This includes embedding Google’s machine learning within conversation services for the contact centre, enabling integration of AI capabilities.
Forrester names Crowdstrike leader in incident response
The report provides an in-depth evaluation of the top 15 IR service providers across 11 criteria.