Car Dealer Insider Feb 1, 2009
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Car Dealer Insider Feb 1, 2009

What's working in dealerships - Dealerships reap big IT cost savings by using MSPs

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What's working in dealerships - Dealerships reap big IT cost savings by using MSPs

Remember this number: $105,700

Dealership managers have spent the last twelve months or more looking for ways to cut operating expenses and dealership owners probably think they have covered all their expense-cutting bases. But dealers who have not investigated an MSP have missed a huge opportunity to save money. MSPs might be the next big idea in dealership management.

What's an MSP? MSP stands for Managed Service Provider. MSPs manage information technology services for companies. Think of it this way: There is a lot of hardware and software in a car dealership. It's all supposed to be "integrated." That is, all those pieces of technology should be able to communicate with each other. But often, the various systems don't talk to each other. Personal computers may run poorly due to viruses, spyware, and unauthorized software downloads.

Dealership managers spend a lot of time and money meeting with, and sometimes arguing with, vendor representatives. The internet is one big playground and employees can look busy while checking scores, instant messaging friends, or worse. On top of that, it is imperative that dealers provide secure electronic records of customer data.

An MSP takes care of all that and, more importantly, can save dealers some serious money in the process.

Robert Davis, a partner in the Dealer Services Group at Dixon Hughes, an accounting and consulting firm with a nationwide practice (www.... (230 of 920 words)

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