You’ve spent months, even years, trying to decide if managed IT services was the right solution for your business. You finally took the plunge and signed on with a managed IT service provider (MSP) you were convinced could meet your strategic IT and business needs.
A growing number of small and medium-sized businesses are turning to managed IT to gain instant access to a deep bench of specialized expertise, advanced technologies and cybersecurity solutions, IT planning and budgeting guidance, and ongoing technical support—all at an affordable and predictable monthly cost.
As with any relationship, however, things don’t always go according to plan.
In this article, we’ll discuss seven of the top reasons MSP relationships falter. We'll also outline key criteria you can use to find a new managed IT partner if you decide switching MSPs would be in your company's best interest.
With this information, you’ll have the insight and clarity you need to help you decide the right path for your business when it comes to managed IT support.
Businesses don’t enter into a managed service provider agreement (MSPA) lightly.
The legally binding contract provides proactive services such as network and mobile device management and monitoring, data storage and security, threat detection, as well as technical support, among many others.
Related Article: What You Need to Know About Managed IT Services Provider Agreements
The process to research different providers before signing on with one can be time-consuming and intense. After all, businesses are entrusting their data and networks to an external entity.
Likewise, managed IT providers have a finite number of staff and resources. So, they too, have to choose wisely when deciding which businesses to partner with to ensure they have the capacity to deliver the services and support promised.
That said, there are various reasons why the relationship between a managed IT service provider (MSP) and client may splinter beyond repair.
Sometimes, client-MSP relationships don’t work because they’re simply not compatible with each other for a host of reasons. Some reasons they might not be right for each other include:
Whatever the reason, as with any relationship, if it's a bad fit, it generally won't last.
When it comes to managed IT services, most providers use monthly billing.
Deceptive billing practices, such as hidden fees or unexpected charges that are not explained in advance, will often lead to broken trust.
Related Article: What Are Common MSP Pay Terms And Billing Practices You Need To Know?
Having monthly statements with uncomplicated language that are easy to navigate and understand are essential to developing a positive client-MSP partnership.
To build a lasting MSP relationship, it’s essential to establish open and honest communication from the start.
For instance, clients need to be upfront with the provider about their entire IT environment, including the number of users, devices, and systems.
If the client knows that they’ll have a new hire or staff departure, then this information should be shared with the MSP as soon as possible to allow sufficient time for onboarding or offboarding.
Repeated last-minute notifications and change orders can lead to other issues, including incorrect client billing, rushed services, and growing tension between the two parties.
Likewise, MSPs must keep their clients up-to-date on the status of ongoing work and alert them to any unexpected issues.
Related Article: 5 Common Mistakes When Using Managed IT Support—And How To Fix Them
Using an MSP that provides accountability and transparency through regular phone check-ins, monthly site visits, and quarterly business reviews (QBRs) helps ensure that the lines of communication stay open.
This way, concerns on either side can be addressed early on rather than linger and fester.
Sometimes a provider has rigid contract terms that hinder a company's ability to quickly adjust to market shifts or to grow their business.
For instance, an MSP may place caps on the number of users or service requests a client is allowed under the regular service level agreement, and then charge a significantly higher fee structure for any additional devices, new hires, or helpdesk tickets over a certain amount.
With an ever-changing technology and business landscape, both clients and their managed IT providers must be adaptable.
The reliability of an MSP to provide ongoing maintenance and support is a key component of managed IT. There are several factors that can affect support levels.
Sometimes, the client has expanded significantly and the provider doesn’t have the staffing flexibility to scale services to keep pace with the client’s changing needs.
In other instances, a client may underestimate the support level they require, which could place unexpected resource demands on the MSP.
Or, in times when remote support isn't enough to handle more complex IT challenges, an MSP that doesn't offer in-person support may prove more of a hindrance than an aid.
Related Article: How Do Service Level Agreements (SLAs) Work In Managed IT Services?
In some client-MSP relationships, both parties share in the responsibility of managing the client’s IT environment. This means that the MSP works directly with the clients’ in-house IT professionals to provide specialized expertise and supplemental resources.
Sometimes, however, there is a disconnect between a client’s internal IT department and the MSP’s team for a variety of reasons.
Both sides need to find a solid balance in order for a co-managed support model to work properly.
In some instances, the client enters the relationship with unrealistic expectations.
For instance, the client may expect the provider to drop everything to prioritize that client’s issues whenever a problem arises.
Most businesses understand, however, that IT providers need to prioritize IT service ticket requests based on the severity of the problem and the number of people within an organization who are affected.
In other cases, the MSP made lofty promises during the initial meetings with a prospective client. Yet, once the ink dried, the level of support or quality of service fell far short of expectations. Over-promising and under-delivering will undoubtedly lead to conflict.
That's why it's critical that both parties sit down at the negotiating table to thoroughly review all aspects of the contract.
Using clear and unambiguous language, your MSP contract should spell out the terms of the agreement, the roles and responsibilities of both sides, the statement of work, the SLA, itemized charges, and billing schedule to reduce the chances for misunderstandings.
Before deciding you’ve reached the end of the road with your current MSP, be sure you raise your concerns as quickly as possible. If you can nip problems in the bud early, you have a far better chance of preventing your relationship from deteriorating beyond repair.
Since communication is a two-way street, the same is true of your MSP.
Regular calls or in-person visits are a good way to ensure that both parties are on the same page and that they're meeting their respective obligations in the relationship.
Once you’ve reached the point of no return, however, start by taking an introspective look.
Be sure you’re clear on exactly what your IT needs are as well as your short- and long-term business objectives as you look for a new provider so that you're clear on your IT needs.
With that clarity, you can begin the search for a new MSP partner best suited for your business.
Consider the following in your search criteria:
After reading this article, you now understand some of the top reasons businesses decide to change managed IT service providers.
Although we’ve said it before, it bears repeating that the cornerstone to a lasting MSP partnership is honest communication and transparency.
If you’ve decided to begin your search MSP search anew, we strongly encourage you to do your due diligence in researching potential partners. It’s no simple task to exit a relationship, and it’s even more complex to switch to a new one.
We provide articles like this to give small and medium-size business owners useful information to help you make informed decisions about IT issues that affect your business.
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