Focus on Value when Choosing a Managed Services Provider

Focus on Value when Choosing a Managed Services Provider

The right MSP will not only have strong technical skills but good communication and the ability to meet changing requirements.

Most organizations are familiar with managed IT services, in which they outsource the day-to-day administration of the IT environment as well as end-user support. The benefits of such an arrangement are well documented. Managed services help boost productivity by ensuring the availability and performance of the IT environment. They also even out IT expenditures through a fixed monthly budget.

That said, the quality of managed services can vary significantly. In all but the smallest communities there are typically multiple managed services providers (MSPs) vying for each customer’s business. The barriers to entry into this market are relatively low. Anyone with a modicum of technical skills and some basic software tools can claim to be an MSP.

Because much of the work is done remotely, there’s really no need to hire a local MSP. Any service provider that can reasonably expect to reach a customer’s site within a few hours is a potential candidate. That means there’s an extremely broad array of MSPs for most customers to choose from.

Selecting the right MSP is critical given the importance of managed services and the close relationship between service provider and customers. While every organization needs to manage expenses, the price of managed services is the least important metric. Key features to focus on include technical capabilities, communication, flexibility and scalability.

Getting Technical

Small to midsize business (SMB) leaders often feel challenged interviewing MSPs because they have limited technical know-how. However, a tour of the MSP’s facilities can offer insight into the firm’s capabilities. Best-in-class MSPs have made significant investments in a network operations center (NOC) that enables remote monitoring and proactive maintenance of IT systems. The NOC should be adequately staffed to ensure responsive support.

The MSP should also provide regular reports that show what work has been performed and whether service level agreements (SLAs) have been met. Ideally, the reports will be geared toward the organization’s key performance indicators (KPIs) rather than a laundry list of technical tasks. Sample reports will illustrate the specific services and analytics the MSP offers.

Many customers look for an MSP with experience in their industry. This can add value if the MSP has specific expertise in the specialized software or regulatory compliance requirements of that industry. However, most SMB IT environments are similar, so a generalist should be able to support most businesses.

More important is the MSP’s understanding of the customer’s business requirements, processes and workflows. The MSP should spend a significant amount of time reviewing the IT environment and meeting with key stakeholders. This will allow the MSP to prioritize critical issues and applications, minimize disruption to business operations, and establish KPIs for measuring progress. Managed services should help to improve business operations, not just stabilize IT systems.

Communication Is Key

Some MSPs assign a particular engineer or technician to a customer’s account. While this can be an efficient approach, it creates risks if that person is unavailable. MSPs should have standardized processes and thorough documentation, enabling any member of their staff to provide support if needed.

Best-in-class MSPs consult with customers periodically as part of the managed services arrangement. This allows the customer to go over any issues that need to be addressed and helps the MSP stay abreast of changes to the business. The MSP should be able to offer recommendations for new equipment, software or procedures that can increase productivity, enhance customer service or improve security.

Flexibility should be a key consideration when evaluating MSPs. While MSP services are often “packaged” according to common business and IT needs, organizations should ensure that service levels can be adjusted up and down to match the priority of various systems or applications.

Growing organizations should ensure that the MSP can scale to meet the additional demand. Organizations that are planning to add employees, locations or product lines should ask pointed questions about the MSP’s ability to sustain service levels and support new systems or IT requirements.

When selecting an MSP, organizations should focus on value instead of price. The right MSP will provide disciplined technical services and sound advice that help keep the business operating smoothly.


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