Looking for the best Managed IT Service Provider (MSP) for your business? Here’s a quick guide to help you make the right choice:
- Understand Your IT Needs: Audit your current systems, set clear IT goals, and identify critical systems like compliance requirements and uptime needs.
- Evaluate Provider Skills: Check for certifications (e.g., Microsoft Gold Partner, AWS MSP), SMB experience, and scalability options like flexible pricing and multi-site support.
- Compare Service Plans: Decide between full or partial IT management, assess service packages, and watch for hidden costs like onboarding fees or after-hours support.
- Verify Security Standards: Ensure robust security measures (e.g., encryption, threat monitoring), industry compliance (e.g., PCI DSS, HITRUST), and disaster recovery plans with fast recovery times.
- Assess Costs: Choose between fixed or usage-based pricing and calculate ROI by comparing downtime and staffing savings against MSP fees.
- Ask Key Questions: Look for providers with strong SLAs, clear escalation processes, and a track record of proactive improvements.
Quick Comparison Table:
| Selection Area | Key Considerations |
|---|---|
| IT Needs | Audit systems, set goals, list critical systems |
| Skills & Experience | Certifications, SMB case studies, scalability |
| Service Plans | Full vs. partial management, pricing options |
| Security | Encryption, compliance, disaster recovery |
| Costs | Fixed vs. usage-based, hidden fees, ROI |
| Final Choice | SLA guarantees, client reviews, contract terms |
8 Things to Consider Before Choosing a Managed Services Provider
1. Know Your IT Requirements
Before choosing a Managed IT Service Provider (MSP), it’s important to evaluate your current IT setup. Knowing exactly what your business needs will help you build a strong partnership with the right provider. Start by clearly defining your IT goals and understanding your existing infrastructure.
Review Current IT Systems
Begin with an audit of your IT assets. Tools like Lansweeper can help you document everything. Did you know that 63% of SMBs don’t have disaster recovery plans, and 82% of security breaches start at endpoints? . These stats highlight why a detailed review is essential.
Set Clear IT Goals
Use the SMART framework to create measurable IT objectives. Think about both your immediate needs and how your systems can grow with your business. Here’s a quick way to prioritize systems based on their impact:
| System Category | Impact Level | Priority |
|---|---|---|
| Core Operations | Critical | High |
| Communication | Important | Medium |
| Administrative | Moderate | Low |
A good rule of thumb: spend 70% of your IT budget fixing current issues and 30% on scalable solutions for future needs .
List Key Business Systems
Make a detailed list of your critical systems, including:
- Integration needs
- Uptime requirements (e.g., 99.99% for essential systems)
- Compliance rules for your industry
- User capacity limits
For example, a law firm found that encrypted email archiving was crucial for compliance . Tracking metrics like Mean Time to Repair (MTTR) and Service Level Agreement (SLA) compliance will also give you a clearer picture of what to expect from an MSP .
Once you’ve documented all your needs, you’ll be ready to evaluate how well potential providers can meet them.
2. Check Provider Skills and Resources
Once you’ve outlined your requirements, it’s time to evaluate the technical qualifications of potential providers. Certifications can be a helpful indicator of their expertise. Here are a few examples:
| Certification Type | What It Shows | Business Advantage |
|---|---|---|
| Microsoft Gold Partner | Advanced Office 365 knowledge | Easier cloud migrations |
| AWS MSP Validation | Cloud infrastructure expertise | Reliable scaling capabilities |
| CompTIA Security+ | Strong security foundations | Better threat mitigation |
Make sure these certifications align with your uptime needs and compliance standards, as outlined in Section 1.
Review SMB Experience
Look for case studies that highlight measurable results, such as reduced downtime or successful migrations. For instance, a manufacturing-focused MSP showcased its ability to connect industrial equipment across multiple facilities, achieving seamless operations . Ask for specific metrics that demonstrate:
- Improvements in system reliability
- Fewer security incidents
- Faster response times
- Cost savings
These details can give you a clearer picture of their effectiveness in real-world scenarios.
Scalability Features
Think about how well the provider can grow alongside your business. Providers offering flexible consumption models, rather than rigid contracts, are better suited for evolving needs [9]. Key features to look out for include:
| Feature | Benefit |
|---|---|
| Flexible Add-Ons | Cost-effective expansion |
| Multi-Site Support | Uniform deployments across sites |
| User-Based Pricing | Predictable budgeting |
Also, prioritize providers that use automated IT tools and robust security frameworks. These technologies allow for proactive maintenance and streamlined scaling as your business expands.
Once you’ve assessed technical skills and scalability, you can move on to comparing how providers structure their services.
3. Compare Service Plans
Full vs. Partial IT Management
Choosing between full and partial IT management depends on your organization’s needs and resources. Full IT management covers everything – 24/7 monitoring, complete infrastructure management, and long-term planning. It’s ideal for companies that lack internal IT teams and want an all-inclusive solution.
| Service Type | Core Features | Best Suited For |
|---|---|---|
| Full Management | 24/7 monitoring, Complete infrastructure oversight, Strategic planning | Businesses without IT staff |
| Partial Management | Support during business hours, Focus on specific tasks, Scalable options | Companies with internal IT teams |
Service Package Options
IT service providers now offer more flexible plans, moving away from rigid tiers. To find the best fit, compare different packages and weigh their coverage against your budget. Focus on aligning the package features with your critical systems (as discussed in Section 1) to ensure they meet your operational needs.
Here are some pricing factors to consider:
- Performance-based pricing
- Per-device fees
- Tiered packages with price increases ranging from 20-40% between levels
Some providers also offer modular packages, letting you customize core services with optional add-ons. When reviewing technical capabilities, check for a standard ratio of one certified engineer for every 15 clients to ensure quality support .
Once you’ve narrowed down service plans, the next step is to confirm that the provider’s security measures align with your organization’s risk profile.
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4. Check Security Standards
After comparing service plans, it’s time to ensure the provider’s security measures match your risk tolerance. Here’s how to evaluate their safeguards effectively:
Security Measures
When assessing an MSP’s security setup, start with their technical defenses. Modern providers should use enterprise-level encryption (TLS 1.3) to secure data both at rest and during transit . It’s also essential they offer round-the-clock threat monitoring .
Key security features to look for include:
| Security Component | Features to Verify |
|---|---|
| Network Protection | Advanced firewalls, intrusion prevention systems |
| Data Security | Strict access controls, SOC 2 certification |
| Threat Detection | AI-driven monitoring, real-time alerts |
Compare these elements with the compliance needs outlined in Section 1 to ensure alignment.
Industry Rules Compliance
Confirm that the MSP adheres to regulations specific to your industry. For example, healthcare organizations should verify HITRUST certification , while financial services must confirm compliance with PCI DSS .
"Security obsession through multi-layered defense audits is non-negotiable when selecting an MSP in today’s threat landscape", says security expert Sudhir Khatwani .
These certifications are vital for avoiding penalties and protecting your business.
Emergency Response Plans
A provider’s disaster recovery and incident response capabilities are critical. Look for an MSP that guarantees a Recovery Time Objective (RTO) under 4 hours for essential systems . Their backup strategy should include:
- Daily off-site backups with a 14-day retention period
- Quarterly testing of restoration processes
- A 1-hour breach notification policy
Additionally, ensure their incident response plan includes thorough data investigation and proof of cyber liability insurance that covers third-party damages .
The 2022 Kaseya breach, which impacted over 1,500 businesses, highlights why robust incident containment and recovery protocols are essential. This example underscores the importance of factoring emergency response capabilities into your decision.
5. Understand All Costs
After reviewing security protocols, it’s time to assess how the provider’s pricing fits within your budget and future growth plans. Match their fee structure to your uptime needs and scalability goals outlined in Section 1.
Fixed vs. Usage-Based Fees
Decide between fixed fees or usage-based pricing. Fixed plans are better for consistent operations, while usage-based options are ideal for businesses with varying needs. Comprehensive, all-inclusive plans can cost up to $500 per user monthly .
Watch Out for Extra Costs
Unexpected charges can quickly add up. Be aware of these common hidden expenses:
| Cost Type | Typical Range | Notes |
|---|---|---|
| Setup/Onboarding | $500-5,000+ | One-time fee |
| After-hours Support | 200% regular rate | Emergency services |
| Hardware Markup | 15-30% over wholesale | Equipment purchases |
| Contract Termination | 3-6 months of fees | Penalties for early exit |
"Compliance costs can equal 20% of base MSP fees", says Abhishek Shah of Testlify .
To avoid surprises, negotiate terms that include capped annual price increases (no more than 5%) and clearly define emergency support costs .
Cost vs. Benefits
Calculate your return on investment (ROI) with this formula:
(Downtime savings + Staffing savings) – MSP costs
For instance, a retail business saved $48,000 in downtime costs and $72,000 in staffing expenses, while spending $85,000 on MSP fees. The result? A $35,000 positive ROI .
To get the most value, try these strategies:
- Negotiate annual price increase caps (≤5%)
- Bundle complementary services
- Choose providers with transparent emergency rates
Measure performance through metrics like faster issue resolution and system uptime. Aim for industry benchmarks such as 99.9% uptime and an average of $45 per resolved ticket .
6. Make Your Final Choice
Once you’ve confirmed cost structures and security protocols, it’s time to lock in your decision. Here’s how to ensure you’re making the right choice:
Key Questions to Ask
Use this table to guide your evaluation of potential providers:
| Evaluation Area | Key Questions |
|---|---|
| Service Quality | Do they meet response time SLAs? |
| Growth Support | How well do they handle client scaling? |
| Security | What’s their incident response plan? |
| Technology | How quickly do they adopt new tech? |
"Would this provider recommend solutions against their own financial interest if better for your business?" says Precious Abacan, emphasizing the importance of integrity .
Dive Into Client Reviews
Client reviews can reveal a lot. Focus on these three key areas:
- Actual vs. Promised Resolution Times: Check if their real response times match SLA commitments.
- Communication Quality: Look at how often and how clearly they provide updates during incidents.
- Proactive Improvements: Find examples of when they took the initiative to improve systems.
Compare these insights with what you learned about the provider in Sections 2 and 4. During trials, check if their performance aligns with your IT priorities from Section 1.
Scrutinize Service Agreements
Detailed SLAs are linked to a 92% success rate in engagements . Make sure your contract covers:
- Uptime Guarantees: Look for 99.9%+ uptime with compensation for failures.
- Response Times: Ensure tiered response times based on issue severity (e.g., under 1 hour for critical issues).
- Disaster Recovery: Require quarterly testing at a minimum.
- Contract Length: Avoid auto-renewals longer than 12 months.
For added assurance, test critical services like backup restoration in live scenarios. This step ties directly to your scalability needs from Section 2.
Conclusion: Steps to Choose Your MSP
By carefully comparing providers based on your key requirements (outlined in Sections 1-5), you can establish a partnership that meets both your technical needs and long-term goals.
| Selection Area | Key Actions |
|---|---|
| Proactive Maintenance | Aim for a preventive-to-reactive ratio above 60% |
| Cost Structure | Look for bundled services to achieve 23% cost savings |
The provider you choose should address the essential systems and growth priorities identified during your initial audit (Section 1). According to Testlify, 68% of problematic MSP relationships could have been avoided by thoroughly validating escalation processes and service capabilities .
Focus on providers with compliance expertise tailored to your industry. They should be able to show:
- Audited security measures
- Transparent pricing structures
- A proven performance track record
- Team members with relevant certifications
Before finalizing your choice, ensure the contract clearly outlines service details, termination terms, and compliance reporting requirements.
