Introduction:
In an ever-evolving digital landscape, selecting the right IT Managed Service Provider (MSP) is crucial for the success of your business. The market is flooded with options, each claiming to be the perfect fit. In this article, I share over a decade of experience in implementing IT MSP agreements with businesses, to delve into key considerations to help you make an informed decision and establish a partnership that goes beyond technical capabilities, focusing on building a relationship that stands the test of time.
Remember, there is no right or wrong, you need to consider your needs, and then select the partner that matches those.
1. Different Models Matter:
Not all MSPs are created equal. Understand the nuances between Break-Fix, Fully Managed, and Fully Managed + Strategic Partner models.
- Break Fix - This is a more traditional, lower-cost model which predominantly relies on response issue resolution.
- Fully Managed - Includes the above, plus proactive work and value-added services such as vendor management, system improvements, health checks, continual improvements, etc.
Clearly define your expectations and explore how each model aligns with your business goals.
2. Strategic Partner:
In addition to which model, you will want to consider if you are looking for a strategic partner, or simply someone to handle IT support.
A strategic technology partner can assist with additional pieces of work such as:
- Strategy Roadmap - Develop a comprehensive IT roadmap that considers the operational situation and goals of the business, to ensure IT is not just keeping the lights on, but helping the business achieve its objectives.
- Digital Transformation - By carrying out inspections of the business, a strategic partner can help you implement process improvement, automation, bespoke business applications, and meaningful business intelligence data to help you make better faster decisions.
Again, it may cost more money to obtain a partner like this, yet they may be able to deliver operational cost savings or improve business functions.
3. Pricing Transparency:
Price is always a factor. We have limited budgets, so it's important to not only make sure we are getting value for our money, but that we are also buying the right level of service.
Dive into the pricing model
- Typically MSPs align their price per "something". This is often either based on an anticipated volume of work (let's call that "Price per ticket"). Or priced per unit (e.g. user or device, let's call that "Per per user")
Here, it's important to consider the consequences of each.
- Price per ticket is a older method. My advice would be to stay away from this model as it does not correctly incentivise the MSP to reduce overall tickets and resolve root issues. As, in doing so, they reduce their billable.
- Price per User is my preferred model. It ensures the MSP is incentivised to be more proactive, to ensure their profitability. It also gives you greater predictability in budgeting.
Avoid the pitfalls of underfunding
- Much like an internal team, MSPs operate better with adequate resources. Ask yourself, if you buy or negotiate a service too cheap, you are reducing the resources those teams have to deliver that service. Success in these relationships needs to be symbiotic.
4. Availability and Integration:
- Assess your need for 24/7 support and understand how it is delivered. If you need 24/7, explore how they deliver it - is it on-call, or a manned shift? Are the SLAs the same? Are they serviced by the same levels of engineers?
- Explore integration options with your existing team, focusing on methods such as ticketing platforms and split responsibilities. Blended IT teams (in-house working alongside MSPs) are very effective models, but it's important to ensure the MSP enables internal to deliver their value, and vice versa, and that they have platforms and processes to effectively collaborate, such as shared ticketing platforms, documentation platforms, device connection methods, scheduled service meetings, reporting platforms, etc.
5. Industry Specialisms:
- Recognize unique industry requirements Do you have any unique needs? if so, seek an MSP with expertise in those areas.
- Whether it's regulatory compliance, 24/7 dispersed support, 3rd party or line-of-business application familiarity, ensure your MSP understands and caters to your industry's specific demands.
6. Relationship Dynamics:
- It's not just about technical capabilities; it's about finding a partner with whom you 'click'. These are deep and important relationships, many MSPs are technically competent, and you also want to work with one that's a good match as if this were a business partner.
- Consider the level of intimacy you desire. Look for dedicated account managers and primary technical contacts to foster a deep relationship to understand what level of departmental ownership and dialogue you can expect.
- Bigger is not always better. There can be benefits, such as broader teams, but there can be consequences, such as becoming less important, or more of a transactional relationship.
7. Understanding Their Stack:
Part of the value of an MSP is that they are not just bringing labour, but they are bringing their own turnkey approach to IT service delivery. This includes unique processes, team structures, and technology solutions that make up their offering. Understand each of these pieces.
Technology Support Stack - what comes in with the contract
Understand the likes of the more typical standard inclusions:
- RMM - Do they have one? How effectively and proactively do they use it? Which do they use? etc
- Monitoring & Reporting - Do they have one/some? What does it cover? Is the output easily accessible to you (live)? Does it feed directly into the ticketing platform? etc
- Ticketing Platform - What do they use? Does it have workflow automation? Can it effectively track SLAs? Does it have project management? Does it have a client portal? Does it integrate with emails and calls to auto-create/update/attach tickets? etc
- Documentation Platform - Do they have a proper platform? How is it hosted? Is it secure? Can you access it (to co-author)? Is it backed up? Can you receive a routine scheduled backup? Etc
Wider Offerings Stack - what is available to you if you so wished
- Explore what solutions they specialise in, whether is cyber security solutions, communications, business continuity, productivity, etc.
- Your MSP should become your broader technology partner, helping you get the most benefit out of the IT channel.
8. Adaptability to Change:
- Assess the MSP's commitment to continuous improvement. In a rapidly changing IT environment, you need a partner who evolves with the times.
- Inquire about recent and planned initiatives within their business to gauge their adaptability.
Additional Tips:
- Client Retention: Investigate their client retention rate and ask for examples of long-term relationships.
- Service Backed by Stats: Seek tangible evidence of their service quality through performance metrics.
- Team Stability: Evaluate the longevity of key personnel within the MSP.
- Financial Stability: Ensure the MSP is financially sound to guarantee sustained support without posing a risk to your business
Conclusion:
Choosing the right IT MSP is a strategic decision that goes beyond technical capabilities. By considering the points outlined above, you not only safeguard your business from potential pitfalls but also lay the foundation for a long and fruitful partnership that could deliver improvements to your business beyond the scope of IT Support. In a landscape where change is constant, investing time in selecting the right MSP now can yield substantial benefits in the future.
- What would you add to this list?
- Do you have any experience that aligns with these points?
Further Discussion
For over a decade I've worked with businesses of all types, to implement various types of MSP agreements. If you would like to discuss these points further or are actively looking for an IT MSP partner, then I would love to talk to you.
