Manufacturing companies are very familiar with complexity. On a daily basis, production lines, supply chain logistics, regulatory demands, and evolving technologies must all be balanced on a knife’s edge. With all this to consider, it’s no surprise that their IT often falls to the wayside.
However, this puts them at serious risk. Though it may be tempting to put IT at the bottom of the priority list, this is not a part of the business you can ever afford to ignore. Failure to properly manage your digital environment can lead to a litany of negative consequences, some of which may have a very real impact on your long-term success.
But what if there was a solution that allowed manufacturing businesses to focus on other things without neglecting their IT?
Key IT Challenges Faced by Manufacturing Firms
Modern manufacturers face a number of unique challenges that make IT management particularly difficult:
Legacy Systems
Many manufacturers still rely on outdated IT, known as “legacy systems”. This is typically due to either budget constraints or the industry’s heavy use of operational technology (OT), which may not be capable of integrating into the most advanced digital solutions available. The manufacturer’s choice is often to stick with older IT that they know works, or replace their entire technological infrastructure.
Unfortunately, there are many problems associated with legacy technology that put these companies in serious danger. Security issues, slowdowns, and unexpected breakdowns are at the top of the list. Companies relying on these systems often experience reduced productivity and profitability as a result.
Security Vulnerabilities
One might assume cyber-attacks are unlikely in manufacturing, but this is far from the truth. For several years, it has actually been one of the most heavily targeted industries. Sensitive data, poor security, and a lack of in-house expertise make this sector an attractive target for threat actors.
Downtime Sensitivity
Downtime is expensive for any business. In manufacturing, where operations run on a strict timeline, it’s a complete disaster. Attacks and outages always carry a steep cost, potentially throwing off an entire delivery schedule and angering partners. Because of this, continuity is crucial.
Compliance and Data Management
Just like every other organization, manufacturing firms handle large amounts of data on a daily basis. Some of this information may be highly sensitive. When working with such enormous datasets, it can be difficult to manage them effectively and securely.
Regulatory requirements present another challenge. Data protection laws are tightening across the world, affecting every industry. Manufacturers are often ill equipped to handle these changes due to limited expertise, budget, and time. This leaves them vulnerable to fines, audits, and other penalties.
In-house IT Limitations
Internal IT teams in this sector are often small and stretched thinner than a rubber band. It can be difficult for manufacturers to justify hiring additional staff, due to budget constraints. Because of this, few staff with limited expertise are often required to handle all aspects of the IT infrastructure simultaneously. This inevitably results in gaps and errors. It may also hold manufacturers back from adopting newer technologies. When all IT staff are busy simply maintaining the current infrastructure, there’s no time to consider innovation.
The Relationship Between OT and IT
As briefly mentioned above, manufacturers don’t just rely on IT, but on a unique blend of digital and operational technologies. This impacts every single aspect of their IT environment, from costs to security to productivity. Any solution must take this into account, drastically complicating every new initiative.
These challenges often make it impossible for manufacturing companies to effectively manage their IT in-house. There are simply too many factors, which they typically lack the resources or expertise to address. But what if there was another way?
What is Managed IT?
Managed IT is when companies hire a third-party expert to monitor, maintain, and secure their digital infrastructure. This might include:
- 24/7 monitoring and support services
- Cybersecurity and threat detection
- Network and infrastructure management
- Data backup and disaster recovery
- Cloud computing services (including migration, optimization, and even hosting)
- Software updates and patching
- Strategic IT planning and consulting
Managed service providers (MSPs) take over the day-to-day responsibilities, allowing you to focus on running the business. They also investigate and implement modern solutions designed to improve efficiency and security.
The Co-Managed Model
Some MSPs may offer a “co-managed IT” service. This is the same as regular managed services, except that they are built to work alongside your existing in-house team. Fully managed IT, on the other hand, can completely replace the need for internal staff at all.
The co-managed model may be useful for manufacturers who simply require assistance for their IT team. For instance, if expertise is lacking in a certain field or a few additional hands are needed, this can be a good option.
The Benefits of Managed IT Services for Manufacturing Firms
1. A Stronger Security Posture
Managed services provide you with access to a full team of cybersecurity experts. They will address vulnerabilities, proactively monitor for threats, and respond quickly to potential attacks. This drastically reduces your risk of experiencing a major data breach, protecting your profitability and partnerships.
2. Increased Uptime
Your MSP will keep an eye on your IT infrastructure at all times. This allows them to catch early warning signs that may indicate a problem long before your systems actually go offline. They then intervene before an outage even occurs, addressing the issue and keeping your operations intact.
These actions help reduce and even eliminate downtime. Your company will operate more consistently, and lose less money when an outage does occur.
3. Cost Control
Managed IT services reduce your expenses in two main ways. First and foremost, they are significantly more cost-effective than hiring additional in-house staff. Rather than paying for salaries, benefits, training, equipment, and office space, when partnering with an MSP you are only responsible for a fixed monthly fee. This price grants access to a full team of experts, something normally out of reach for many companies.
There are also indirect cost savings due to the continuous monitoring and maintenance work performed. By solving issues before they can escalate, MSPs keep your hardware running better for longer. This limits the amount you need to spend on sudden repairs and replacements. Both these factors allow you to budget more effectively and save money for other initiatives.
4. Access to New Technology
MSPs are highly experienced working with various industries, including manufacturing. They can help you overcome the challenges that would normally prevent you from adopting modern technologies, allowing you to modernize without the additional stress. This unlocks unprecedented efficiency and productivity.
5. Scalability
As your firm grows, your IT infrastructure will need to adapt with it. But when relying on in-house staff, this can be difficult. Managed services are much easier to scale due to the subscription service model they use. If you experience a period of rapid growth, you often need only move to the next package. As a result, you can scale faster without costs spiralling out of control.
6. Compliance Support
Your MSP can explain complex new regulations in a way that’s easy to understand, and develop strategies to help you comply. They are also often familiar with a number of cybersecurity frameworks that further improve your adherence with data protection laws. Because of this, working with an MSP significantly reduces your risk of experiencing an audit or penalty.
7. Ability to Focus on Business Success
While your MSP handles routine IT tasks behind the scenes, your team is freed up to focus on initiatives that drive growth and success. Instead of wasting hours on troubleshooting issues or updating software, they can strategize, plan, and create.
The Downsides
While there are clear benefits, it’s also important to briefly discuss the potential issues with outsourcing your IT:
- Less Control: While you will always have the final say, it’s important to note that working with a third party does inherently result in a slight loss of control. Rather than actioning tasks yourself, you will instead communicate your needs to your MSP and let them take the reigns. This can be uncomfortable for some business leaders.
- Service Gaps: Not all MSPs have expertise in all areas. There may occasionally be gaps that you need to fill elsewhere.
- Onboarding Time: Transitioning to a managed services model requires time and planning, especially if you’re also working with an internal team. Depending on the complexity of your environment and the MSP you choose, this can result in very brief disruptions.
- Communication Challenges: Any time you partner with a third party, miscommunications can arise. This should be fairly infrequent as long as you choose the right MSP for your needs, but is still a risk.
- Vendor Lock-In: Some providers use proprietary tools or long-term contracts, making it difficult to switch providers later.
Are Managed IT Services Worth It?
So, when taking the pros and cons into account, are managed IT services for manufacturing firms worth the cost?
To answer this question, ask yourself these important questions:
- Have you recently experienced a cyber-attack or data breach? Are you concerned about the potential financial and reputational consequences if one did occur?
- Have you experienced slowdowns, outages, or other IT issues?
- Do you find it difficult to keep up with regulatory changes?
- Is your existing IT team beginning to fall behind on certain tasks? Are you or other staff picking up the slack?
- Are you concerned about your company’s ability to scale in the near future?
- Do you turn down investment opportunities because those funds are needed for basic repairs or replacements?
If you answered yes to any of these questions, then you may benefit from a managed service provider.
How to Choose Managed IT Services for Manufacturers
Once you’ve made the decision that your manufacturing company needs an MSP, your next step is choosing the right one. Here are some important traits to prioritize:
1. Industry Experience
Generic MSPs may struggle to understand the unique environment manufacturers operate within. Look for a partner who specializes in this field. Ask about their experience working with industry-specific tools and regulations. Ask for case studies and testimonials that demonstrate their track record in the manufacturing sector.
2. Rock-Solid Security
Make sure your provider understands and prioritizes cybersecurity. They should offer a number of services designed to protect clients from a number of different angles, as this shows wide expertise. They should also implement the same security measures within their own operations. A good MSP will understand that their vulnerabilities put your business in danger, too – not just yours.
3. Scalable Support Plans
Check that as your company grows, your provider will be able to accommodate it. Look for multiple service tiers, or ask directly how they can continue to support you during periods of growth.
4. Responsiveness
When an attack strikes or systems shut down, your MSP must respond instantly. If they regularly take hours or days to respond to requests, or aren’t answering their phone, look elsewhere. This signals that they are biting off more than they can chew, and won’t be available to help you during a crisis.
5. Clear Communication
The test to find an expert in any field is simple: Can they explain a highly technical concept in terms that anyone can understand? Your MSP should be able to break down extremely complex IT jargon into language you don’t need a degree to keep up with. They should also be fully transparent and honest, even when they know you will not like what they have to say.
6. A Proactive Approach
Your MSP should not sit there doing nothing until an emergency occurs. Choose one who moves proactively to identify and resolve issues before they start to disrupt your operations.
Protect Your Productivity and Ensure Success
Modern manufacturers depend on their IT environments to maintain a high level of productivity, prevent cyber-attacks, and scale effectively. An MSP provides the extra helping hand you need to keep this crucial part of your business functioning properly and contributing to your long-term growth. By choosing the right partner and working closely with them, you can stop worrying about your IT and start thinking about how to drive your company towards success.
Looking for new technology that can take your operations to the next level? Read our buyer’s guide to manufacturing IT solutions.
FAQs
What Are Managed IT Services?
Managed IT is when businesses hire a third-party IT expert to handle daily maintenance, monitoring, and optimization tasks on their behalf. They can either replace your existing IT team entirely, or work alongside them using a “co-managed IT” model.
What Are the Benefits of IT Managed Services for Manufacturing Firms?
The benefits of managed IT for the manufacturing industry include less downtime, stronger data security, higher efficiency, improved compliance with industry regulations, and lower costs.
How Much Do Managed IT Services Cost for Manufacturers?
The cost of managed IT services for manufacturers depends on a number of factors, including the complexity of your digital environment, the size of your company, your current risk level, and the MSP’s own pricing scale.
What Can a Managed Service Provider (MSP) Do For My Company?
An MSP will typically offer some combination of the following: helpdesk support, network monitoring, daily maintenance and optimization, security services, cloud migration and hosting services, data backup and recovery, disaster recovery plans, and strategic consulting. Note that each MSP will provide slightly different services based on their areas of expertise.
What Should I Ask Before Signing a Contract with an MSP?
Before signing up, always ask about response times, service scope, pricing structure, scalability, industry experience, and client references. Pay attention to their transparency and response time – this will tell you a lot about them.