The Essential Guide to Choosing the Right Managed Service Provider for Your Business
If you are considering outsourcing some of your tech processes or operations to a Managed Service Provider (MSP), you are in for a tough competition.
A recent survey revealed that nine out of every ten small and medium businesses have already partnered, or are considering partnering, with an MSP to outsource some of their IT needs.
The same poll also revealed some insightful findings such as:
- About three out of every five large organizations around the world use MSPs to streamline their IT and cloud services. The same number of respondents said cybersecurity was their biggest challenge, for which they sought the help of an MSP.
- As much as 78 percent of organizations view MSPs as a solution for Internet of Things (IoT) management.
- Almost half of the respondents (48 percent, to be precise) believe that MSPs could handle device management and migration to remote work better than traditional IT.
When so many contemporary organizations are not only realizing the benefits, but are partnering with MSPs more than ever before, the need to choose the right MSP can give a competitive edge.
This blog post discusses the ways and means to handpick the right MSP for your business. Read on and thank us later.
Understanding MSPs and How They Work
Many businesses outsource their IT operations and processes to third-party organizations for better operational efficiency, cost efficacy, and enhanced service quality.
An MSP is that third-party organization that remotely manages IT infrastructure and end-user systems for other businesses. MSPs offer diverse services, which cover everything from network management and data backup to advanced cybersecurity measures. They ensure that a business’s IT systems remain up-to-date, secure, and aligned with their goals.
A majority of MSPs bill an upfront setup or transition fee and an ongoing flat or near-fixed monthly fee to their clients. By doing that, they are able to sustain predictable IT support costs.
The concept of MSP emerged in the 1990s when application service providers (ASPs) paved the way for remote support for IT infrastructure. In and around 2005, the managed services business model found support from a handful of extremely eminent figures in the industry. There was no looking back since then.
When it comes to how MSPs work, they provide a wide range of services such as:
- Network management: MSPs ensure their clients’ IT infrastructure is reliable, secure, and scalable.
- Cloud services: MSPs offer cloud computing solutions for data storage and applications.
- Disaster recovery: MSPs create systems to protect clients’ data and maintain business continuity in case of disruptions.
- Security measures: MSPs implement robust security measures to protect against cyber threats.
Why Contemporary Businesses Should Partner with MSPs?
In the current time, the world is changing at a breakneck speed. Contemporary businesses must remain up-to-date with the rapidly evolving technology landscape. However, it’s not possible for a majority of companies to manage all their IT operations and processes all by themselves. That’s why the need to join forces with the right MSP becomes extremely important. Businesses should partner with the right MSPs for these key reasons:
1. Cybersecurity
Would you be surprised to learn that cybersecurity is a major concern for contemporary businesses? As per a poll by Cybersecurity Ventures, there were more than 2,200 cyberattacks every day, or one attack every 39 seconds, last year. The number of attacks have been growing in the past few years and it’s going to increase this year as well as the next. In such a case, every business needs to take cybersecurity extremely seriously. Taking the help of a reliable MSP can help a business enhance its cybersecurity.
2. Cost Efficiency
As per a study by CompTIA , 46 percent of businesses that partnered with MSPs reported lower IT costs. Another data reveals that companies that contract MSPs can reduce overall IT costs by 20-30 percent! Outsourcing IT-related activities to MSPs reduces overhead and allows companies to allocate resources more effectively.
3. Increased Focus on Core Business Operations
Legendary management guru Peter F. Drucker famously said, “Do what you do best and outsource the rest.” Partnering with the right MSP is precisely that. Outsourcing non core activities and processes to an MSP allows businesses to focus on their core operations and strategic goals.
4. Increased Efficiency, Productivity, and Access to Advanced Technology
A recent data finds that through improved efficiency and reduced downtime, MSPs increase productivity by 15-25 percent. MSPs also provide businesses with access to the latest technology, tools, and software without the need for large capital investments. This helps businesses remain competitive and efficient.
5. Expertise and Specialization
Last but not the least, MSPs offer specialized knowledge and technical skills that many businesses may not have in-house. As the saying goes, “Some things are better left to experts.” MSPs are experts in their respective domain and they help businesses stay ahead of technological advancements and industry best practices without needing to hire and train internal experts.
Choosing the Right Multi-Tenant IP PBX Software for Your MSP Business
How To Choose the Right MSP?
Before knowing the step-by-step guide to handpick the right MSP, it is important to identify the key pain points and challenges that your organization is facing currently.
a. Identify Pain Points and Challenges
First of all, identify all pain points and challenges related to your business operations. Ask yourself some serious questions and seek honest answers to those:
1. In-House IT Expertise
How adept are you at handling your IT systems, infrastructure, network, and security? Can you handle it well? Or are you finding it hard to manage all those by yourself?
2. Cybersecurity Risks
Let’s face it! In today’s time, all businesses, irrespective of type and size, are at risk of data breaches. How well equipped are you to protect yourself from cyberattacks, ransomware, phishing, and data breaches?
3. IT Costs
Maintaining and upgrading internal IT infrastructure can be expensive. Do you have the funds to manage all expenses related to IT processes by yourself?
4. Downtime and System Failures
Unplanned downtime due to hardware failure, software bugs, or network issues can happen from time to time. Do these interruptions disrupt your operations and affect your productivity?
5. Flexible and Scalable Arrangements
For contemporary businesses, flexibility and scalability matters a lot. How flexible and scalable are your operations? Can you scale up or down your IT operations in a seamless manner?
b. Steps to Choose the Right MSP
After identifying your pain points, you are clear about what your requirements are and what types of services you will need from your MSP. It’s time to search online or offline and find the one MSP that’s best for your business.
1. Define Objectives
First thing first, define your objectives in a crystal clear manner. What specific services are you looking for? And how can an MSP fulfill your business requirements? Not all MSPs offer the same services. That’s why you must research potential providers to determine which ones specialize in the services that are most relevant to your business.
2. Set a Reasonable Budget
Now that you know what types of services you need, it’s time to set a reasonable budget. That’s because you will find some extremely reputable MSPs with a strong track record and years of experience charging a premium. You will also find several MSPs that charge lower than the market rate. Setting a reasonable budget will help you find an MSP that’s worth its salt, which you are comfortable paying.
3. Search Online with High-Intent Search Terms
Looking for reliable and reputable MSPs by using high-intent search terms is the quickest and the most cost-effective way to skim through a lot of service providers. Use search terms such as:
- “Best Managed Service Providers in (your location)”
- “Top Managed Service Providers in (your state/province)”
- “Top 10 Managed Service Providers in (year)”
Feel free to use a keyword tool to get some valuable insights and suggestions. It’s better to type Managed Service Providers instead of MSPs as the abbreviation has a lot of full forms in different industries and contexts.
4. Visit Websites and Evaluate Services Offered
After getting search results, visit at least five to seven websites and evaluate the services each MSP offers.
Different MSPs offer a different set of services, so it’s important to assess which provider best meets your needs. Ensure the MSP has expertise in key areas such as:
- Data backup and disaster recovery
- Cloud services and cloud computing
- Network management and IT infrastructure
- Security measures, including firewalls and encryption
Choosing an MSP that can provide tailored solutions for your business’s specific requirements will ensure you get the most value out of the partnership.
What to Look For While Evaluating MSPs?
Once you’ve narrowed down potential providers, it’s time to evaluate them based on the following key factors:
1. Proven Track Record and Reputation
Look for an MSP with a proven track record of successfully supporting businesses similar to yours. Check client testimonials and case studies to assess their ability to deliver results. A reputable MSP will have a history of successfully meeting clients’ needs and demonstrating high customer satisfaction.
2. Tech Stack
An MSP is as good as the tech tools it leverages. That’s why you must make sure that you ask each one of them what tech stack they leverage to monitor, manage, and optimize their clients’ IT infrastructure. To give an example, our MSP clients leverage our HoduCC call and contact center software to handle customer service in the most effective way. Some use HoduBlast voice and SMS broadcast software to send bulk messages to their clients. HoduPBX IP PBX software helps them streamline internal as well as external communications. You need to ensure that MSPs are up-to-date with emerging technologies and have a solid approach to integrating new solutions that can grow with your business needs.
3. Service Level Agreements (SLAs)
Service Level Agreements (SLAs) outline the level of service the MSP will provide, including response times, uptime guarantees, and resolution times for any issues. Carefully review the SLAs to ensure they meet your expectations, particularly in areas such as network management, security measures, and overall service quality.
4. Cybersecurity and Compliance
Given the increasing number of cyber threats, cybersecurity measures are critical. Ensure that the MSP has a comprehensive cybersecurity plan that includes regular security audits, robust security measures, and compliance with industry regulations, including:
- General Data Protection Regulation (GDPR)
- Health Insurance Portability and Accountability Act (HIPAA)
- Payment Card Industry Data Security Standard (PCI DSS)
- California Consumer Privacy Act (CCPA)
- Federal Information Security Management Act (FISMA)
5. Support and Response Times
The quality of support provided by an MSP is a major factor in choosing the right MSP. Review their response times and how they handle issues. An MSP that provides 24/7 support is ideal for ensuring any issues are promptly addressed, minimizing downtime and ensuring business continuity.
6. Scalability and Future Growth
As your business grows, your IT needs will likely evolve. A reliable MSP should be able to scale their services to accommodate the changing demands of your business. Look for an MSP that offers scalable solutions that can grow with your company, helping you achieve long-term business growth without having to switch providers.
7. Pricing Models and Cost Considerations
An MSP’s pricing structures vary, and it’s important to understand how they charge for their services. Common pricing models include:
- Fixed-rate pricing: A predictable monthly fee for a defined set of services.
- Pay-as-you-go pricing: Charges based on usage or service consumption.
- Tiered pricing: Offers different levels of service based on business needs.
While cost savings can be a major benefit of outsourcing to an MSP, ensure that the pricing structure aligns with your business needs and does not compromise the quality of service. Thorough research of pricing models will help you avoid hidden fees and overages.
In Conclusion,
In today’s age, a lot of businesses of all types and sizes are outsourcing IT-related activities to MSPs. The right MSP not only meets their business’s specific needs but also provides tailored solutions that support long-term business growth.
Choosing the right MSP is a strategic decision that can mean the difference between taking your business to new heights of success and not being able to do that.
That’s why you should invest quality time and resources to do thorough research and meticulously evaluate MSPs based on their experience, services offered, security measures, and pricing structures. The investment will pay off in business success for years to come.
