Imagine the chaos of under-optimized IT infrastructure and the escalating cost of in-house IT solutions, not to mention the lurking dangers of inadequate cybersecurity.
Missteps in such areas can cost your private equity-owned organization dearly in terms of operational efficiency and bottom-line figures.
You can avoid these pitfalls with managed services and scale your business’s growth. The strategic implementation of managed services can reduce your organization’s IT cost by 25-45% and increase operational efficiency by 45-65%.
We’ll dive into how managed services, specifically tailored for Microsoft 365 and Azure, and advanced cybersecurity solutions, can empower your organization to maximize IT investment and improve operations.
Introduction to Managed Services for Private Equity Companies
Assessing the IT infrastructure is pivotal when eyeing a potential investment or acquisition. The IT environment’s health heavily influences your chosen company’s long-term success because a frail IT infrastructure could demand hefty investment for rectification. Such costs contradict your profit aspirations as a private equity (PE) partner.
Managed services providers (MSPs) have the necessary specialized skills, profound knowledge, and sophisticated tools to help you effectively navigate such scenarios. For example, MSPs enable you to unlock substantial savings and scaling potential in procurement. These saving opportunities may be invisible amidst non-specialist teams and outdated, inefficient processes, causing valuable data to evaporate with your notice.
The correlation between superior procurement capabilities and competitive advantage is unmistakable upon valuation. With expert assistance, your procurement process can shift from mundane goals like capturing low-hanging opportunities to strategic, value-creating initiatives.
Benefits of IT Operations Oversight
MSPs provide numerous benefits to private equity firms, from risk mitigation and cost reduction to streamlined operations and regulatory compliance. The benefits of IT operations oversight include the following:
- Cost savings and efficiency
- Risk mitigation and cybersecurity
- Sophisticated procurement functions
- Compliance, backups, and disaster recovery
- Standardized due diligence and streamlined transactions
Cost Savings and Efficiency
MSPs provide IT optimization for private equity firms to cut IT costs and increase operational efficiency significantly. With MSPs managing tactical tasks, your internal IT staff can focus on long-term business goals. Some managed service providers offer group discount rates for added portfolio companies since you outsource to a single partner.
From conducting thorough technology assessments, uncovering relevant IT risks and gaps, and implementing changes based on legislative implications on IT, MSPs help your organization maximize efficiency and transparency.
Risk Mitigation and Cybersecurity
MSPs provide robust protections against threats such as fraud, phishing, and cyber-attacks, helping to protect private equity firms’ resources, penalties, and reputation. They also help each business in your portfolio develop a long-term technology strategy that supports their goals and ensures security.
With performance optimization solutions, like powerful cloud-based business applications, MSPs enhance cybersecurity measures that help boost productivity and support scalability.
Sophisticated Procurement Functions
MSPs support advanced procurement strategies, which can lead to value creation far beyond simple cost reductions. With expertise in the latest IT trends and technologies, MSPs optimize spending and manage supplier risks, helping you extract value across all categories.
Modern procurement now involves advanced spend analytics, process automation, predictive technology such as machine learning for demand planning, and many other intensive processes — all of which MSPs can help you with.
Compliance, Backups, and Disaster Recovery
MSPs can help private equity firms remain compliant with industry regulations and provide backup and disaster recovery services, protecting your organization against potential penalties and business disruptions.
For example, in case of disaster, a managed Disaster Recovery-as-a-Service (DRaaS) delivers real-time data replication and rapid recovery of servers and systems, ensuring minimal disruption.
Standardized Due Diligence and Streamlined Transactions
With a dedicated MSP, you can standardize your due diligence process for investment companies, reducing headcount and enabling easier transactions at the end of their investment. MSPs support user directory and identity mergers and migrations, aiding in team unification post-transaction.
MSPs provide comprehensive and secure IT operations oversight by offering 24/7 remote monitoring of critical IT systems, support for data protection and migrations, and continuous, on-demand access to IT systems. With an MSP providing network stability across all portfolio companies, you can focus on improving your portfolio’s worth.
All these benefits of IT operations oversight help your organization to unlock cost savings, improve security, free up internal resources, ensure compliance and increase agility to achieve bottom-line goals faster.
Maximizing IT Investment with Microsoft 365 and Azure Cloud Services
With Microsoft 365 Managed Services, you can enhance your IT systems by optimizing your Microsoft 365 implementation, facilitating seamless collaboration, robust data privacy and encryption, and adherence to information governance and compliance.
MSPs help simplify the Microsoft 365 licensing structure and avoid unnecessary expenses.
Merely acquiring a Microsoft 365 license is just the beginning. With ne Digital, you can unlock an array of benefits, including:
- Transforming your project execution budget from CapEx to OpEx
- Accessing robust guidance for Microsoft Office deployment
- Understanding appropriate license levels for every user
- Enjoying unlimited migration services
We also make data encryption and compliance with information protection standards hassle-free.
We provide Azure Managed Services that identify cost-saving opportunities and manage cloud service consumption. These services empower PE firms to effectively migrate, manage, and secure their existing IT infrastructure on the cloud, from standardizing IT workflows to implementing a proven framework for Azure IT maintenance, updates, and dynamic scaling.
With a dedicated team handling day-to-day IT operations, reducing operational expenses, and enhancing process efficiency, you can focus on strategic business growth.
Importance of Cybersecurity Managed Services
PE firms face multifaceted threats that jeopardize your firm and other portfolio companies. The IBM 2022 Data Breach Report states that the average data breach cost in the United States is $9.44 million.
Managed cybersecurity services provide a safeguard, drastically reducing the time to identify and contain breaches — saving an average of $1.12 million if done within 200 days. These services enable you to shield your firm from financial compliance risks and secure the most complex application integrations.
It’s more than cost savings — it’s unparalleled peace of mind for your firm and portfolio companies and preserving your hard-earned reputation.
Choosing the Right Managed Services Provider
Consider your firm’s IT complexity, specific IT needs, and budget when selecting an MSP. The MSP’s experience, reputation, and customer service will also help you choose the right one that best suits your private equity firm’s needs.
ne Digital provides managed services that go beyond an outsourcing solution to become an extension of your team. With over $5 million in IT assets under management, we comprehend the unique needs of PE firms like yours.
Our services streamline operations, mitigate cyber threats, and ensure compliance while optimizing performance. Unshackle your resources, increase agility, and capitalize on the long-game strategy that spans years and multiple portfolio companies.
ne Digital is an IT consulting organization that designs and operates for private equity asset value creation. We run Managed Cybersecurity, Microsoft 365, and Azure Infrastructure for mission-critical workloads.
We are expert architects and certified engineers as Microsoft Solutions Designation Partners for Microsoft 365 Modern Work and Azure Infrastructure.
Speak with an expert today to see how digital can empower your firm.
