Like all businesses, some managed service providers (MSPs) are better than others. Knowing the possible managed IT service challenges may leave some business leaders hesitant to outsource an MSP. That needn’t be the case. The right strategy can help you pick the right partner from the MSP market.
“A bad experience with one MSP shouldn’t scare you away from the service model. Simply be sure to define your needs clearly and strategically vet your next partner.”
– Holden Watne, Business Development Director, Generation IX
However, it’s also important to note that if an MSP proves challenging to you, that may not necessarily mean they’re a bad MSP. It may just mean that they weren’t the right fit for your particular needs. So, knowing your long-term goals before you start a relationship can solve most managed IT challenges.
Still, certain challenges may still be a risk no matter what your needs are. This article will explore 6 of those challenges. We’ll discuss what the risks of partnering with an MSP are and how you can avoid them.
What Are the Key Risks of Managed IT Services?
1. Overdependence
Businesses that rely on managed IT services may face disruptions if the provider encounters operational issues. This heavy reliance leaves companies vulnerable to the effectiveness of the provider’s risk management strategies.
2. Data Security Issues
Outsourcing IT tasks means handing over control of sensitive data to a third party. This situation heightens the risk of data breaches, particularly if the provider’s security protocols are inadequate.
Be mindful that it’s not just about how they handle your data protection. You also need to verify that their internal cybersecurity is up to par. Poor cybersecurity from third-party partners causes 29% of all cyber incidents.
42% of SMB Leaders Have No Cyber Response Plan
If you’re one of them, talk to experts about how you can change that.
3. Loss of Control Over IT Operations
When IT services are outsourced, companies may experience diminished control over their IT infrastructure and decisions. This reduced influence can hinder a business’s ability to implement specific IT solutions or respond quickly to technological advancements.
4. Compliance Challenges
Service providers may not always adhere to the specific regulatory standards required in your industry. Non-compliance on the provider’s side can still lead to legal repercussions and financial penalties for you.
5. Hidden Costs
Managed IT services may introduce unforeseen expenses beyond the initial contract terms. These can arise from extra services or support needed beyond the planned scope. Research shows that 91% of people consent to legal terms without reading them, which is part of why hidden costs continue to be so prevalent.
6. Scalability Issues
Modifying service levels to match business growth or reduction can prove difficult. Not all managed IT service providers scale efficiently. This could lead to potential service delays or additional costs during transitions.
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What Can You Do to Avoid Those IT Managed Service Challenges?
1. Overdependence
Establish clear service level agreements (SLAs) and maintain an in-house IT team to handle critical operations. This approach ensures business continuity and reduces reliance on external providers.
2. Data Security Issues
Conduct regular audits of the provider’s security protocols and insist on compliance with industry-standard security practices. Implement additional encryption and security measures to protect highly sensitive information if needed.
Remember, these audits can’t be a one time deal. 97% of tested applications have at least one security vulnerability. These vulnerabilities can appear after your last test so make sure you conduct them regularly to catch new ones as they appear. Remote monitoring can also help mitigate this issue.
3. Loss of Control Over IT Operations
Define precise contractual terms that specify your control over IT decisions and operations. Regularly review and adjust these terms to keep pace with technological changes and business needs.
4. Compliance Challenges
Choose providers with proven compliance records in your industry. Regularly monitor compliance through audits and insist on immediate rectifications of any discrepancies to avoid legal and financial risks.
Make sure you’re also familiar with your compliance standards and how an MSP’s work may affect them. If you’re new to the MSP market, here is a quick overview of what you need to watch out for to avoid compliance challenges from your MSP.
| HIPAA | Ensure the MSP maintains stringent security controls, including encryption, secure data storage, and regular risk assessments. |
| PCI DSS | Verify that the MSP uses robust encryption, implements strong access control measures, and regularly audits payment systems. |
| FISMA | Monitor the MSP’s compliance with NIST standards for information security to protect federal information and systems from unauthorized access. |
| SOX | Check that the MSP supports compliant data management practices, including secure data logging, integrity controls, and transparent financial reporting. |
| CCPA | Monitor the MSP’s compliance with CCPA, ensuring they provide transparency, consumer data access, and the right to delete personal information. |
| ISO/IEC 27001 | Review the MSP’s information security management system (ISMS) to ensure it is in compliance with international information security standards. |
| FERPA | Ensure the MSP maintains detailed audit trails for access and modifications to educational records. |
| CMMC | Assess the MSP’s implementation of required cybersecurity practices and processes to meet the required CMMC level for DoD contract eligibility. |
| GDPR | Confirm compliance with data protection principles such as data minimization, right to erasure, and strict data transfer protocols across borders. |
5. Hidden Costs
Negotiate transparent pricing structures and monitor the billing process closely. Include clauses in the contract that limit unexpected charges and specify charges for additional services upfront. You should also avoid providers who appear guarded about their pricing structures.
6. Scalability Issues
Select providers that offer flexible service packages which can be adjusted as your business needs change. Plan for scalability from the start of the relationship to avoid future inefficiencies or unexpected costs.
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Start Your Search for the Right MSP at Generation IX
Once you know what you’re looking for, it’s time to seek high quality service providers who don’t leave you with any of these challenges. Look for fast response times, meaningful IT support answers, and a wide variety of services offered.
Generation IX offers all of the above! Our deep technical knowledge and wealth of business expertise makes us the ideal candidate for any growing business in need of an MSP. We also offer a unique instant messaging helpdesk service (gix IM) that you can connect directly with Slack or Teams.
Reach out today to learn more.
