IT Insights, Managed IT Services & Digital Transformation | Planet US Blog

How to Measure the ROI of Managed IT Services

Written by PlannetUS | May 20, 2026 5:00:00 PM

The ROI of managed IT services is measured through specific indicators such as reduced downtime, fewer critical incidents, increased productivity, optimized operating costs, and better use of internal talent.

According to KPMG, 99% of companies consider managed services a strategic business priority. This confirms that their value is not limited to reducing OPEX, but also includes enabling a more agile, resilient, and innovative operation.

The key is to optimize operations while reducing costs.

 

How Do Managed IT Services Improve Business Operations?

A managed services provider allows companies to continuously monitor, manage, and optimize their IT infrastructure.

A better-managed infrastructure helps prevent failures, respond faster to incidents, and free up the internal IT team to focus on higher-value projects for the business.

Working with a managed services provider helps resolve incidents and redefines how your team operates. These are the concrete benefits:

 

Less downtime

Greater continuity in sales, production, and customer service

 

Faster incident resolution

Reduced operational impact when a failure occurs

 

Continuous monitoring

Early detection of issues before they escalate

 

Controlled change management

Lower risk during updates, migrations, and deployments

 

Greater infrastructure visibility

Better decisions on capacity, security, and performance

 

Lighter load on internal IT

More time for innovation projects and operational improvements

A documented Cisco case shows the impact of this model: Liberty Mutual, with Cisco Managed Services and optimization services, reduced high-priority incidents by 60%, achieved 100% success in change management, and reduced losses associated with outages.

At PlanNet, we help organizations implement cost-effective enterprise networks through managed IT services designed to improve operational performance while reducing costs. Contact us to learn how we can support your technology goals.

 

How Do Managed IT Services Help Reduce Costs?

Cost savings are generated by having an external expert team dedicated 24/7 to preventing losses from network outages, reducing response times, simplifying contracts, and freeing up IT resources.

Cisco estimates that 72% of total savings come from benefits such as recovered productivity and lower mean time to resolution, while 28% comes from direct savings, such as spare parts, contract management, and IT time.

For a company, this means ROI should be analyzed from three perspectives:

Indicator What It Measures Business Value
Reduced downtime Avoided outage hours Protects sales, production, and business continuity
Avoided incident costs Incidents reduced or resolved faster Decreases operational losses and support workload
Freed internal capacity Hours IT no longer spends on repetitive tasks Enables progress on strategic projects

Cisco also reports that a typical enterprise organization can save nearly US$2.5 million in the first year, US$7 million over three years, and US$12 million over five years with Services Enrollment, achieving an ROI of more than 600%.

 

Formula to Calculate the ROI of Managed IT Services

The general ROI formula compares the net benefit of an investment against its cost. Applied to Managed IT and Implementation Services, the formula can be expressed as follows:

ROI = [(benefits obtained – total investment) / total investment] x100

A company can add the following benefits and compare them against the total investment in managed services:

1

Avoided downtime

Avoided downtime = avoided outage hours × average cost per hour of disruption

Impact example

Fewer hours offline at branches, plants, distribution centers, point-of-sale systems, or critical applications.

2

Recovered productivity

Recovered productivity = recovered user hours × average cost per hour

Impact example

Users who stop losing time due to connectivity failures, slowdowns, outages, or recurring tickets.

3

Avoided incident cost

Avoided incident cost = avoided incidents × average cost per incident

Impact example

Fewer critical failures, escalations, rework, and reduced impact on end customers.

4

Freed internal capacity

Freed internal capacity = hours freed from the internal IT team × average cost per hour

Impact example

The internal team can focus on automation, security, expansion, analytics, or improving customer experience.

5

Operational simplification savings

Operational savings = reduction in duplicated tools, contracts, spare parts, or services

Impact example

Less administrative complexity, better vendor control, and greater cost visibility.

Total benefits (sum of all 5 indicators)

Total benefits =
avoided downtime + recovered productivity + avoided incident cost + freed internal capacity + operational savings

Overall ROI formula

ROI = [
total benefits − total investment
total investment
]

 

To Gain These Capabilities, You Need an Experienced Provider

A reliable Managed IT Enterprise Network Support Services provider should improve operational stability, reduce risks, optimize resources, and measure results with clear indicators.

With PlanNet, companies can implement managed IT services backed by experience in enterprise networks, technology implementation, and continuous support.

As a Cisco Partner, we provide IT consulting to turn your technology investment into a direct benefit for your operation.

The result is a more stable, secure, and measurable IT operation, with clear metrics to demonstrate return on investment.

 

You might also be interested in reading the Key to Successful Digital Transformation: Better Networks, Better Customer Experiences