How to Select the Right Managed Services Provider for Your Business
The market for managed service providers is growing. Often shortened to just MSP, this area has grown into a multi-billion dollar industry. Some studies see the managed services provider industry growing at an impressive CAGR of 12% until 2028. Globe Newswire estimates that the global MSP industry’s value will be around $557 billion by this point.
IT management is becoming more complex as technology evolves, and newer systems are implemented. Security is a serious issue for online businesses, and data breaches are a genuine risk. There is also the need to remain compliant and meet certain regulations and laws surrounding data and networks. These are just some of the reasons that MSPs are being used more and more by modern enterprises. Below are some more reasons that an MSP may be necessary, and how to choose the right one for your company.
Why use a managed services provider?
It is important to understand why you need managed services for your business, and not start outsourcing just because it appears to be on trend. Many businesses are using managed services now and seeing the benefits, but having a full understanding of what an MSP can bring is vital if those benefits are going to be realized.
Outsourcing can prove cost-effective when compared to an in-house team. You can reduce risk by using managed services, and you can expect more uptime as your networks are monitored constantly.
Having an MSP in place can help to push a preventative maintenance policy instead of making fixes after something breaks. But, to see these gains and more, you will need to choose the best MSP for your firm.
How can you choose the right managed services provider?
Many factors can determine whether you choose the right MSP, and this article is perhaps too brief to cover all of them. However, below you will find some of the most crucial areas you should be looking at when hiring managed services.
Experience
How much internal experience do they have, and are they outsourcing some tasks to other companies? Ideally, your MSP will have its own trusted and talented team that has several years of experience.
Do they understand your business?
The nature of enterprises differs from one to another. Does your MSP have a good understanding of your business and its requirements? Take note of whether they are asking the right questions.
Cost-effectiveness
Managed services providers can offer a cost-effective solution to businesses, but it may not always make financial sense to use one. An IT technician’s salary in Los Angeles is $63,163 on average but can rise to nearly $79,000, reports Salary.com. However, when recruiting IT generalists and supervisors, you can expect to pay substantially more. In some cases, the yearly salary may be more than $100,000.
On this evidence, it would appear to make sense that an MSP is a more cost-effective route, but due diligence is still necessary.
Are references available?
You might not find online reviews for your chosen MSP, but they should have references available, and these can be used to get an understanding of how they operate, and the service quality you can expect.
What services are available?
Not all MSPs provide the same set of services, and some may be more specialized in certain areas. For instance, protecting customer data is vital for an eCommerce business, so an MSP that specializes in cyber security might be a better choice than another provider.
Who are their previous and current clients?
They might have an impressive list of clients, but this can go against you too. If your potential MSP is contracted to a close rival then there could be a conflict of interest. Ideally, your MSP will be focused on providing you with the best service possible.
Are they local?
There is a great deal of importance in choosing a local managed services provider. Meeting in person will be far more convenient, services are more personal, and accountability is easier.
Scalability
As your business grows so will its need for the MSP to be able to scale with it. Can the MSP adapt its services and provide the right tools for scaling your business?
Are they certified in any way?
It can be beneficial to check for certification and to see whether the MSP is an official partner of any third-party vendor. Employees of the MSP may have role-based certification in place also from Azure, Google, or AWS.
Experience
It is important to research the experience of your potential MSP. Ask questions about their internal team and find out how many years they have been in business. In addition, inquire if they are outsourcing some tasks to other companies, this could offer insight into their overall capabilities.
Do they understand your business?
Understanding a company’s needs is critical for an MSP to provide successful managed services. Find out what types of questions your provider will ask and make sure that they can comprehend the unique requirements of your business before selecting them as a partner.
Cost-effectiveness: Cost plays a major role in determining whether it makes financial sense to use an MSP. Generally, the cost of an IT technician’s annual salary can range from $63,163 to nearly $79,000. Recruiting IT generalists and supervisors may mean spending even more money annually. Look into whether an MSP is a more cost-effective solution in your case before making a decision.
Are references available?
Before hiring any managed services provider, make sure they can provide valid references that will give you a better understanding of their abilities and the quality of service they offer. References are essential in deciding if an MSP is right for you or not.
What services are available?
Different MSPs offer different types of services so it is important to compare them and decide which one best suits your needs.
Summary
Cost plays a large part in choosing an MSP, and if the right one is in place, you could see your IT-related costs reduced. But, the services that an MSP can provide, along with their experience are also crucial to check.
Finding a locally based MSP can hold advantages over one that only works remotely, and they should be able to adapt as your business grows. If the right MSP is chosen, then the gains can be huge and it seems to be a trend that is only becoming more popular.
