Managed Services
Managed Services as a Platform for Innovation
For many years, companies saw managed services as nothing more than an insurance policy. Something breaks, you lodge a ticket, and a technician resolves the issue. That model still exists, but it is limited.
The real opportunity emerges when organisations view their managed service provider (MSP) as a partner in progress. The right MSP helps businesses move past a “fixit when it fails” mindset and instead focus on ongoing improvements. This approach allows new ideas to be tested without runaway budgets and enables change without major disruption.
Large transformation projects often exceed expectations and budgets. Studies byMcKinsey show that IT projects overrun their budgets by an average of 45percent, and their benefits are typically 56 percent less than expected. These blowouts make executives cautious about investing in new initiatives.
Big-bang rollouts can overwhelm staff. A major CRM upgrade, for example, may promise new features but can also create months of disruption for the teams that rely on it.
IT departments are under constant pressure. They need to keep systems running, address daily incidents, and somehow also find time for innovation. As a result, new initiatives are delayed or abandoned.
A managed service changes the rhythm of innovation. Instead of waiting for the next large project cycle, improvements can be delivered steadily. New features, workflow optimisation, and automation can be introduced without halting business operations.
Example: A mid-sized Australian retailer used managed service hours to trial and release a new click-and-collect feature for its online store. Because the work was funded from the predictable monthly service cost, there was no need for a special project budget. The feature was delivered in weeks and had an immediate positive impact on sales.
Managed services are built on a subscription model. The cost is clear and consistent, which allows businesses to allocate resources for innovation without worrying about unexpected overruns.
Example: A healthcare provider in Victoria gradually automated parts of its patient administration process using its managed service arrangement. Instead of funding a large automation project, the provider introduced changes in stages and avoided the risk of investing millions upfront.
Smaller, continuous changes are easier for employees to absorb. Training can be phased, adoption happens naturally, and resistance to change decreases.
Markets shift quickly. Organisations that make steady, incremental improvements remain competitive. Those that wait for the next large-scale project often find themselves playing catch-up.
Innovation requests flow more easily from business users to a managed service team that already understands their systems. This connection transforms IT from a cost centre into a driver of growth.
Continuous improvement extends the life and value of existing platforms like Salesforce and Microsoft Dynamics. Companies extract more value without needing to constantly purchase new systems or start from scratch.
Context matters. A provider who understands both your technology and your business environment will be more effective at spotting opportunities.
The best arrangements allow you to direct hours toward innovation initiatives, not just support requests.
Named resources who know your history and challenges will identify improvement opportunities faster than rotating staff.
Define success with your MSP beyond ticket resolution and uptime. This could includetargets such as reducing manual processes by 20 percent or delivering one new feature each quarter.
Managed services can be much more than a safety net. When treated as a platform for innovation, they reduce risk, control costs, and make meaningful change possible.
Retailer scan quickly roll out new digital experiences. Healthcare providers can adopt automation without risking wasted investments. Finance teams can improve reporting capabilities without waiting years for the next upgrade cycle.
Innovation becomes part of the everyday rhythm of the business rather than something reserved for large, disruptive projects. For organisations serious about growth, a managed service that focuses on innovation provides a clear path forward.
