How to Convince Your Board to Invest in Managed Identity Service Providers: Building the Business Case

In today’s rapidly evolving digital landscape, securing enterprise identities has never been more critical—or more complex. As organizations grapple with hybrid work environments, cloud migrations, and growing security threats, many CISOs and IT leaders are turning to Managed Identity Service Providers (MISPs) to strengthen their security posture while reducing operational burden.

However, securing board approval for such investments often proves challenging. Decision-makers may view identity management as a cost center rather than a strategic investment, especially when weighing it against other priorities.

This guide will help you build a compelling business case that speaks directly to board members’ concerns, highlighting the ROI, risk reduction, and competitive advantages that managed identity services deliver.

Understanding the Identity Management Crisis

Before approaching your board, it’s essential to understand the full scope of identity management challenges facing enterprises today:

• Growing attack surface: According to Okta’s 2023 Businesses at Work report, the average organization uses 89 different applications, representing a 24% increase over the past four years.

• Rising costs of breaches: IBM’s Cost of a Data Breach Report shows that compromised credentials are the most common attack vector, involved in nearly 20% of breaches with an average cost of $4.5 million per incident.

• Resource constraints: A 2023 ISC² Cybersecurity Workforce Study reveals a global cybersecurity workforce gap of 3.4 million professionals.

Given these challenges, organizations increasingly turn to managed services to supplement their security teams. But how do you make this case persuasively to your board?

1. Align Identity Investments with Business Objectives

Board members respond to proposals that directly support strategic business initiatives. Connect identity management to key business objectives:

Digital Transformation Support

If your organization has digital transformation initiatives, emphasize how managed identity solutions enable secure access to new digital services and cloud environments. Identity and Access Management (IAM) solutions are foundational technologies that support innovation while ensuring security.

Regulatory Compliance

For regulated industries, compliance is a business imperative. Detail how managed identity services help meet specific requirements:

• Healthcare: HIPAA compliance for protected health information
• Financial services: SOX, PCI-DSS, and other financial regulations
• Education: FERPA compliance for student data protection
• Government: FISMA, FedRAMP, and NIST frameworks

Avatier offers industry-specific compliance solutions that can significantly reduce the complexity of meeting these regulatory requirements.

Operational Efficiency

Board members are often focused on operational efficiency. Demonstrate how managed identity services reduce overhead:

• Automated provisioning: Reduces onboarding time from days to minutes
• Self-service capabilities: Minimizes help desk tickets for password resets and access requests
• Centralized governance: Streamlines auditing and certification processes

2. Quantify the ROI of Managed Identity Services

Boards speak the language of numbers. Present a clear financial case for managed identity services that quantifies both costs and benefits:

Cost Avoidance

• Security breach prevention: According to IBM, the average cost of a data breach reached $4.45 million in 2023. Identity-related breaches often exceed this figure.

• Reduced audit findings: Non-compliance penalties can range from thousands to millions of dollars, depending on the industry and violation severity.

• Staff efficiency: By redirecting specialized security staff from routine identity management tasks to higher-value initiatives, organizations typically recapture 15-20% of security team capacity.

Operational Cost Reduction

• Help desk savings: Password reset requests typically constitute 20-50% of all help desk tickets. With self-service password management, organizations can reduce these costs by up to 95%.

• Provisioning automation: Manual user provisioning costs approximately $400 per employee when accounting for IT staff time and productivity loss. Automated provisioning through managed services reduces this cost by 80% while accelerating access delivery.

• License optimization: Comprehensive identity governance identifies unused licenses and zombie accounts, typically reducing software expenses by 5-15%.

Predictable Budgeting

Unlike capital expenditures for identity infrastructure, managed services provide:

• Predictable monthly or annual costs
• No unexpected upgrade or maintenance expenses
• Reduced need for specialized identity expertise
• Scalable pricing aligned with actual usage

3. Address Risk Management Concerns

Board members are increasingly aware of cybersecurity risks and their potential impact on business operations and reputation. Frame managed identity services as an essential risk management strategy:

Credential-Based Attack Prevention

Verizon’s 2023 Data Breach Investigations Report found that 74% of breaches involve the human element, including credential misuse. Avatier’s multifactor authentication solutions provide advanced protection against credential theft and misuse.

Insider Threat Mitigation

SailPoint’s Market Pulse Survey revealed that 65% of organizations experienced insider-related breaches or fraud. Managed identity services provide continuous monitoring and anomaly detection to identify suspicious behavior before damage occurs.

Privileged Access Security

According to Forrester Research, 80% of security breaches involve privileged credentials. Managed PAM services provide:

• Just-in-time privileged access
• Session monitoring and recording
• Automated credential rotation
• Comprehensive audit trails

Zero Trust Implementation

Gartner predicts that by 2025, 60% of organizations will embrace Zero Trust Network Access. Managed identity services provide the foundation for zero trust by enforcing the principle of least privilege and continuous verification.

4. Highlight Competitive Advantages

Board members are concerned with market position and competitive advantage. Demonstrate how managed identity services contribute to your organization’s market leadership:

Business Agility

Organizations with mature identity management can onboard new applications 65% faster than those with manual processes, according to Forrester Research. This enables quicker response to market changes and customer needs.

Enhanced Customer Experience

Seamless authentication experiences directly impact customer satisfaction. Ping Identity’s Customer Experience Survey found that 81% of consumers have abandoned a purchase due to an overly complicated login process.

Talent Attraction and Retention

Modern workforces expect frictionless access experiences. Companies with streamlined identity processes report 18% higher employee satisfaction scores than those with cumbersome access management.

Secure Partner Ecosystem

Organizations can safely expand their partner ecosystems with proper identity management. This capability opens new revenue streams and collaborative opportunities while maintaining security.

5. Present Implementation Approaches

When presenting to the board, outline different implementation approaches to demonstrate thoroughness in your planning:

Phased Approach

Rather than proposing a complete identity management overhaul, consider a phased approach:

1. Phase 1: Deploy self-service password management and MFA
2. Phase 2: Implement automated provisioning and access requests
3. Phase 3: Establish comprehensive governance and compliance controls

This approach allows for quick wins while distributing costs over time.

Hybrid Models

Some organizations prefer a hybrid model that combines:

• In-house management of core identity infrastructure
• Managed services for specialized functions like privileged access management
• Cloud-delivered identity services for remote workforce and customer identities

Avatier’s flexible deployment options support various hybrid implementation models.

Full Managed Service

For organizations facing severe resource constraints or undergoing rapid transformation, a fully managed identity service provides:

• Comprehensive identity lifecycle management
• 24/7 monitoring and support
• Continuous technology updates
• Specialized identity expertise on demand

6. Develop a Compelling Presentation Strategy

When presenting to your board, consider these presentation strategies:

Start with the Business Problem

Begin by articulating the business challenges that identity management addresses, such as:

• Security risks posed by compromised credentials
• Productivity losses from access management friction
• Compliance violations from inadequate controls
• Technology gaps limiting business initiatives

Use Peer Comparisons

Boards respond to competitive comparisons. Research how peer organizations approach identity management:

• Industry benchmarks for identity maturity
• Case studies of similar organizations
• Competitor security postures
• Industry analyst recommendations

Prepare for Common Objections

Anticipate and prepare responses for typical board concerns:

• “Can’t we build this internally?” – Compare the total cost of ownership for build vs. buy scenarios, including ongoing maintenance.

• “Is this just another security tool?” – Emphasize that identity is foundational infrastructure that enables both security and business efficiency.

• “What’s the implementation timeline?” – Present a realistic timeline with key milestones and dependencies.

• “How will we measure success?” – Define clear KPIs tied to business outcomes, not just technical metrics.

Conclusion: Building Long-Term Identity Strategy

Securing board approval for managed identity services requires more than technical arguments—it demands a business-focused approach that speaks to the concerns and priorities of executive leadership.

By quantifying ROI, addressing risk management, highlighting competitive advantages, and presenting flexible implementation approaches, you can build a compelling case that resonates with board members.

Remember that identity management is not merely a security function but a business enabler that supports digital transformation, reduces operational costs, improves user experiences, and strengthens compliance posture.

As you develop your board presentation, focus on the strategic value of identity management in enabling your organization to confidently pursue its business objectives in an increasingly complex digital landscape.

For more information on how managed identity services can transform your organization’s security and operational efficiency, explore Avatier’s identity management services or contact our team for a personalized consultation.