The retail sector is seeing unabated growth. According to a report by Statistica, in 2022, the global retail market generated sales of over 27 trillion U.S. dollars, with a forecast to reach over 30 trillion U.S. dollars by 2024. This explosive growth is not just limited to conventional brick-and-mortar stores; it is being fuelled by the rapid growth of e-commerce, which allows businesses to access clients all over the world. There is a growing demand for reliable IT solutions for guaranteeing smooth operations and cybersecurity safeguards to protect sensitive data as the retail industry changes and expands. Managed IT services can alter how merchants manage their IT requirements in this situation.
Managed IT services are a set of technology services outsourced to third-party providers known as Managed Services Providers (MSPs). These providers take on the responsibility of managing and maintaining various aspects of a company’s IT infrastructure. Unlike traditional IT support, which follows a break-fix model (fixing problems as they arise), managed IT services take a proactive approach. They not only fix issues but also anticipate and prevent them. This approach transforms IT from being a cost centre to a strategic asset.
Retailers embracing managed IT services reap a host of benefits:
Defined IT tasks
Managed services allow retailers to define the specific IT tasks they need, reducing the need to recruit, hire, and onboard in-house IT personnel for every task. This helps control costs effectively.
Outsourcing IT services frees up internal staff to focus on business-specific tasks, boosting productivity and revenue generation. MSPs also offer optimization recommendations, enhancing ROI and productivity.
Managed IT services can expand or contract according to business needs, ensuring resources align with requirements.
MSPs often perform maintenance and updates during off-hours, minimizing disruptions to retail operations.
Several factors play a role in determining the cost of managed IT services for retailers:Size and Scope of the Retail Business:
The complexity and scale of a retailer’s IT infrastructure affect the cost. Larger businesses with extensive networks and multiple locations may require more comprehensive services.
The level of service agreed upon in SLAs, including response times for issue resolution, can influence pricing. Faster response times often come at a higher cost.
Review the SLAs offered by the managed IT partner. SLAs outline the level of service you can expect, including response times and issue resolution. Ensure their SLAs align with your organization’s requirements and expectations.
Retailers can choose from a range of services like network management, helpdesk support, cybersecurity, and more. The scope and variety of services directly impact costs.
Considerations for future growth and scalability impact costs. Retailers must ensure their managed IT services provider can adapt as their business expands.
Retailers dealing with sensitive data like financial or medical information may need additional compliance measures, leading to higher costs.
The pricing models for managed IT services vary based on the service provider and the scope of services. Here’s a breakdown:
Businesses can choose to pay either a block of usable hours or an annual subscription fee.
Typically, an all-or-nothing model where you pay for the entire service bundle, whether you use all aspects or not.
The fully burdened cost of salary, benefits, and training for in-house IT staff.
Median base salary for a Computer Support Specialist is around $50,980, with fully burdened costs potentially reaching $65,000 – $70,000 per employee.
Fixed fee model, providing predictable budgeting and cost management.
A typical MSP engagement for ITSM over a 3-year period can cost up to 40% less than an in-house IT support unit of similar size.
Easily scale services as your business grows without incurring substantial additional costs.
Managed IT services cater to the unique requirements of the retail sector:
Avoiding Business Disruptions
MSPs support point-of-sale systems and secure technology platforms, minimizing disruptions and potential cyber threats.
Retailers can enhance the customer experience through helpdesk solutions, mobile device support, and in-store digital technology management, fostering customer loyalty and referrals.
Cybersecurity is paramount in retail, and MSPs provide real-time threat detection, response, awareness training, and other security services to protect sensitive data.
Retailers benefit from outsourcing infrastructure support, including network management, e-commerce site support, data protection, analytics, and reporting.
Cloud solutions enable retailers to scale operations, secure remote access, and manage data efficiently. Services may include cloud migrations, assessments, and IT consulting.
MSPs offer specialized expertise, ensuring optimal IT solutions and reducing costs by maximizing infrastructure efficiency.
To excel in today’s retail market, embrace cost-efficient managed IT services and partner with Nuvento. Experience the future of managed services for retail with us.
Managed IT services pricing models don’t have to be complex. With Nuvento, you can discover a simplified, cost-effective way to ensure your retail business remains agile, secure, and ready for the future. Contact us today and unlock the potential of managed IT services for retail success.
