Managed services are a strategic decision for businesses of all sizes. Industry research shows they accounted for 11% of global IT expenditure in 2014, with 61% of businesses planning to invest within the next two years.
While cost reduction is an initial driver, businesses discover the immense value of proactive maintenance and rapid response to technical issues. But with a multitude of Managed Service Providers (MSPs) available, how do you select the right partner for your organisation?
What is Managed Service Provider (MSP)?
A Managed Service Provider (MSP) is a third-party company that acts as an outsourced IT department for businesses. They remotely manage a customer’s IT infrastructure and user systems, including networks, security, monitoring, and potentially even specific hardware or software. MSPs are most commonly employed by small and medium-sized businesses (SMBs) and allow them to focus on core operations while the MSP handles the day-to-day IT burden.
Functions of MSPs
- IT Infrastructure Management: This includes managing networks, servers, desktops, and mobile devices. MSPs can ensure these systems are up-to-date, secure, and functioning optimally.
- Technical Support: MSPs offer technical support to end-users, resolving issues and troubleshooting problems.
- Cybersecurity: MSPs can implement and manage cybersecurity solutions to protect an organisation’s IT systems from cyberattacks. This may include installing antivirus software, managing firewalls, and monitoring for suspicious activity.
- User Access Management: MSPs can manage user accounts and access permissions, ensuring that only authorised individuals have access to sensitive data and systems.
- Contract Management: Some MSPs can handle IT contract management, taking the burden off internal teams.
- Compliance and Risk Management: MSPs can assist with compliance and risk management by ensuring IT systems meet relevant industry regulations and data security standards.
MSP Pricing Model
- Per-Device Pricing: A flat fee is charged per device managed by the MSP. This is simple to understand but may not scale well for businesses with a mix of devices or BYOD (Bring Your Own Device) policies.
- Per-User Pricing: A flat fee is charged per user, ideal for scenarios where users access multiple devices.
- All-Inclusive Pricing (Fixed Fee): Also known as the “all-you-can-eat” model, this offers a fixed fee for a comprehensive package of IT support and management services.
- Tiered Pricing: Clients choose a service bundle that aligns with their needs. This offers flexibility and caters to a wider range of client requirements.
- Monitoring-Only Pricing: The MSP provides monitoring and alerts for IT infrastructure, a more basic option for businesses with in-house IT resources.
Factors for Choosing the Right Managed Service Provider (MSP)
- Align IT Needs with Business Goals: Conduct a thorough assessment of your current IT setup and future needs. Ensure the MSP has experience in your industry and can address compliance requirements.
- Evaluate MSP Experience: Look for an MSP with a proven track record in your industry and a strong client base. Their experience translates to problem-solving expertise for complex IT challenges.
- Match Services to Your Requirements: Identify the specific IT services your business needs, such as network management, cybersecurity, cloud solutions, or data backup and recovery. Ensure the MSP offers a comprehensive portfolio that aligns with your current and future requirements.
- Prioritise Response Times: Rapid response times are crucial for minimising downtime and ensuring business continuity. Ask the MSP about their average response and resolution times for common IT issues.
- Ensure Scalability: Your IT infrastructure should adapt to your growing business. Choose an MSP that offers flexible service plans and can scale resources as needed.
- Security is Paramount: Robust security measures are essential for protecting your data and systems. Look for an MSP with strong security practices, including data encryption, intrusion detection, and regular vulnerability assessments.
- Disaster Recovery Planning: Unforeseen events can disrupt operations. Ensure the MSP has a comprehensive disaster recovery plan that includes data backup, redundancy, regular testing, and staff training.
- Understand Contractual Terms: Carefully review the MSP’s contract, including pricing structure, service level agreements (SLAs), termination clauses, and any potential penalties. A clear and transparent contract avoids confusion and ensures a successful partnership.
- Seek Client References: Contact references from the MSP’s current or past clients to gain valuable insights into their performance, reliability, and customer service.
- Effective Communication is Key: Clear and consistent communication is vital for a successful relationship with your MSP. Ensure the MSP offers multiple communication channels (phone, email, ticketing system) and has readily available support staff.
Master Your IT. Focus on Growth.
Choose the right MSP and unlock the full potential of your IT infrastructure. Secure, scalable, and aligned – it’s time to ditch the worry and focus on what matters: growing your business.