How Cloud Backup and Recovery Helps TSPs Create Business Value Faster

Golden compass outsourcing concept
As technology grows more complex and fast-paced, more organizations are choosing to outsource IT services. Today, the global IT outsourcing (ITO) market is $288 billion. Even regulated organizations are turning to outsourcing. In fact, banking and securities was the largest sector for IT spending.

If you’re a technology service provider (TSP), you may find that it’s getting harder to compete for business by implementing ideas in the market before your competitors. Once you do win new accounts, you struggle to stay on top of constant data security threats and insufficient (or underused) staff to maintain the services in-house. So how do you create competitive advantage while improving your profit margins? 

Reduce Heavy Lifting

With staffing being such a challenge, it’s important to reduce your staff’s involvement in services that require a lot of time and expertise. Take backup and recovery, for example. It’s the one IT requirement no one can avoid. According to data from 451 Research, 60 percent of organizations turn to service providers for backup and recovery — a higher percentage than for any other cloud service.

However, it requires a high level of involvement from your staff. Most TSPs offer some flavor of cloud data services, and your customers will expect you to as well. That means cutting out backup and recovery services is not an option. Instead, consider allowing a third party to handle the requirements of vaulting data and running recovered production systems. 

Focus on Your Key Differentiators

Once you’ve outsourced services that consume your IT resources, approach your services portfolio strategically. What service gives you the most bang for your buck? What distinguishes you from your competitors?

Perhaps you can target a niche market or bundle backup and recovery with other services to create a new offering. At Rentsys, for example, TSPs leverage our BlackVault Managed Recovery services to reach regulated industries with enterprise-class cloud infrastructure. Nuvodia, a technology service provider in the medical industry, worked with us to help its clients to comply with HIPAA guidelines regarding data security and business continuity. As a result, Nuvodia increased its sales, grew its market share and enabled its customers to meet regulatory guidelines more easily.

To give you an idea of how successful these product and service offerings can be, one of our clients took a $5,000-per-month account and turned it into over $10,000 per month.

Even if backup and recovery itself isn’t your primary revenue generator, reducing the heavy lifting associated with that service allows your IT staff to focus on projects that advance your business, helping you get new products to market faster.

Outsourcing helps your clients improve their IT efficiency, and it can help you too.

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