The demand for Microsoft Dynamics 365 Managed Services is rising. As companies continue to invest more and more in technology, including in automation, operational applications, analytics and AI, we’re well and truly in the second wave of digitalisation. Yet, employers still find it challenging to recruit the right skills, with 69% of UK leaders reporting that their organisation suffers from a digital skills gap.

 

This makes the IT Managed Services sector incredibly important for businesses wishing to grow and remain competitive—and it might have you thinking about the benefits of engaging a Managed Services Provider (MSP) to take on the growing task.

 

The managed services market in the UK is substantial: as of 2024, the market generated approximately £14.7 billion in revenue. A striking feature of  this is the increasing need for application support and maintenance, notably with industry leading products such as Microsoft Dynamics 365, the market for which is expected to grow by 11.9% in the next 10 years.

 

If you’re here, you’re likely using Microsoft Dynamics 365 and considering an MSP model to reduce strain on your business. Let’s explore some of the reasons to engage.

The evolving features of Dynamics 365

Microsoft Dynamics 365 is increasingly offering tailored solutions for specific industries, such as finance, healthcare, and retail (and others). These solutions typically bring together a selection of customised Dynamics 365 modules.

 

Dynamics 365 Ecosystem H1 2025

 

Additionally, Microsoft releases regular updates throughout the year that continuously enhance Dynamics 365’s value, such as the recent roll out of agentic AI for Sales.

 

While this level of customisation affords enterprises the opportunity to address challenges unique to them, thereby increasing operational efficiency, many do not have the in-house skills required to support, maintain and optimise their investment in Dynamics 365, leading organisations to turn to MSPs to take on that responsibility.

 

Establishing a partnership with a Dynamics 365 specialist can be game changer, enabling you to leverage the platform’s full capabilities.

What value does a Dynamics 365 Managed Services Partner bring?

KPMG recently conducted a study into maximising SaaS value, surveying over 700 companies. Among many compelling insights, the report determined that only 25% of companies are getting long term value from their SaaS solutions, of which Microsoft Dynamics 365 is one.

 

With this in mind, partnering with a Dynamics 365 managed services provider unlocks value and enables your business to optimise its technology investment.

 

For mid-size organisations in particular, outsourcing your IT support to an MSP offers significant return on investment against a backdrop of constantly evolving features and functionality.

 

What do I mean by significant return on investment? Here are 7 compelling reasons to partner with and MSP.

 

1.     Refocus on core business activities

 

Managing Dynamics 365 involves continuous monitoring, updates, and troubleshooting. By transferring these tasks to an MSP like Telefónica Tech, your internal team can focus on strategic initiatives and core business activities, confident that your investment in Dynamics is in safe hands.

 

2.     Reduce operational risks

 

An MSP brings expertise to optimising the performance of Dynamics 365, reducing the risk of disruption and ensuring the system runs smoothly. For example, at Telefónica Tech, we focus on both support and performance, aligned to Microsoft’s technology roadmap.

 

3.     Stay secure and compliant

 

Security is a top priority for any organisation. An MSP ensures that your Dynamics 365 environment is secure, compliant with industry standards, and aligned to the latest updates and releases.

 

4.     Predict and reduce costs

 

Maintaining an in-house team for Dynamics 365 support can be expensive and inefficient. An MSP provides expert services at a predictable cost. This helps with better budgeting and financial planning.

 

5.     Continuously improve your systems

 

Leading MSPs go beyond providing ongoing support, to offering continuous improvement for your Dynamics 365 environment. This helps you leverage new features and functionalities and de-risk deprecations, thereby ensuring that you get the most out of your investment.

 

6.     Simplify vendor engagement

 

When you implement a Dynamics 365 system, you are required to engage frequently with Microsoft, which can be both challenging and time-consuming. An MSP takes that engagement on. As a Microsoft-certified partner, with a subscription to Microsoft’s Premier Support for Partners, Telefónica Tech engages with Microsoft on your behalf, ensuring that you realise the benefits associated with this level of access.

 

7.     Partner with an expert

 

At Telefónica Tech, we live and breathe Microsoft Business Applications. We’re one of the few UK partners to support the entire Dynamics 365 range and can offer advanced and proactive technical support for these applications. Not only that, we develop relationships with our customers and are invested in your success—a managed services partnership that gives you peace-of-mind.

How to find the right Dynamics 365 Managed Services partner

Partnering with an MSP can make a significant difference to your organisation.

 

For the reasons outlined, outsourcing Dynamics 365 support and maintenance can be the best way forward for many businesses. The alternative of doing it yourself can be costly in time and resource and runs the risk of the organisation falling behind.

 

In addition, choosing the right MSP is an important decision. Consider things like tech specialties, experience, and location. For example, it can make a huge difference to have a dedicated service delivery team in your time zone.

 

Telefónica Tech helps UK businesses unlock the full potential of Microsoft Dynamics 365. Our friendly, expert team ensures that your system is secure, efficient, and aligned with your business goals. This strategic move can drive significant value and help you realise the full benefits of your investment in Microsoft technology.

 

Learn more about what Telefónica Tech’s Dynamics 365 Managed Services can do for you. We’d love to talk about how you can benefit from our expertise and customer-centric approach to delivering value!

A man smiles at the camera while sitting with a laptop

Explore Telefónica Tech's Dynamics 365 Managed Service packages

About the author

Nick McNally is a veteran Head of Managed Services, Business Applications with over 20 years’ experience driving excellence in service delivery across a variety of managed services organisations, most recently specialising in in enterprise business applications. He has led cross-functional teams in designing, implementing, and optimising IT services and solutions to align with organisations requirements, be they big or small, simple or complex. He is a firm believer that a good managed services team can deliver great outcomes, for customers and parent organisations alike. Outside of work he enjoys relaxing with family, going to gigs, and hacking away on the guitar.

You might also be interested in...