Managed service providers (MSPs) can offer a transformative solution to help empower your business.
Small and midsize businesses (SMBs) face a lot of technical challenges, from navigating complex IT infrastructures to ensuring robust cybersecurity measures. To add to the struggle with these demanding responsibilities, many SMBs lack the in-house expertise and resources to effectively manage their IT needs.
This is where managed service providers (MSPs) can help, offering a transformative solution that empowers SMBs. SMBs deal with all the same issues of these larger enterprises, like outdated software, security vulnerabilities, and more, and MSPs give them access to the necessary technical expertise to solve these problems.
In this article, we'll examine how employing managed service providers can benefit your business, while also exploring some of the disadvantages of using an MSP with tips to minimize the downsides.
What is a managed service provider (MSP)?
A managed service provider is a third-party IT services company that manages, supports, and proactively monitors a business's IT infrastructure and end-user systems on an ongoing basis. This allows SMBs to effectively outsource the management and responsibility of their IT, security, and tech stack to an external team of experts.
Instead of handling this in-house, which can stretch your staff thin, partnering with an MSP gives you access to enterprise-level IT support at an affordable price. Top MSPs act as an extension to your team, optimizing your systems, identifying vulnerabilities, and resolving problems rapidly.
Types of MSP services
The range of MSP services is extensive, catering to a variety of IT needs. Some common services include:
Network management: MSPs can install, support, and optimize servers, routers, Wi-Fi, switches, VPNs, and other critical parts of your network infrastructure.
Data backup and recovery: Some MSPs provide business continuity services that will ensure no files or systems are ever permanently lost while enabling restoration after outages.
Cybersecurity: An MSP can manage your firewall, malware protection, data encryption, networks and security monitoring, vulnerability testing, security awareness training, and other services to harden defenses.
Cloud computing: MSPs that specialize in cloud technologies can help you with cloud migration, integration, management, and optimization services.
Help desk and support: An MSP can offer responsive help desk services, ensuring that your employees have access to timely technical support for their IT issues and inquiries.
Remote monitoring: Advanced remote network monitoring tools allow MSPs to track all systems and resolve most problems before you even notice them.
Why do businesses outsource with MSPs?
Businesses outsource their IT tasks to MSPs because they want to have a proactive and strategic approach to their IT needs. Instead of waiting for IT problems to occur and then looking for solutions, managed services for small businesses allow continuous and preventative IT monitoring and management.
Also, a managed service provider handles all the IT tasks and responsibilities that would otherwise distract or overwhelm business staff. This allows them to focus on their core business activities and goals rather than worrying about IT functionality and security.
An MSP for small businesses can also assess the current and future IT needs of the business. The MSP will advise what IT services and solutions the business should implement or improve over the next year and how they can align with business objectives and budget.
Advantages of MSPs for small businesses
Managed service providers offer a range of advantages for small businesses, empowering them to enhance efficiency, productivity, and overall IT performance. However, it's essential to consider potential disadvantages as well.
Here are some of the pros of using managed services for small business:
Improved efficiency and productivity
MSPs can significantly improve efficiency and productivity by taking over the burden of IT management, allowing businesses to focus on running their business instead of their infrastructure. According to a recent study, 44% of businesses use service providers because they lack the bandwidth to handle certain IT tasks, even when they possess in-house expertise.
MSPs can also proactively identify and address potential IT issues before they escalate, minimizing downtime and disruptions that could hinder productivity. By outsourcing IT management, businesses can free up their valuable internal resources to focus on strategic initiatives and growth opportunities.
Reduced risk of IT-related problems
MSPs prioritize preventive IT maintenance, implementing proactive measures to identify and address potential issues before they become major disruptions or security breaches. This approach helps businesses minimize downtime, reduce the risk of data loss, and ensure the continuous operation of their critical IT systems.
MSPs also provide regular monitoring and maintenance services to ensure that networks, servers, and software function properly. This practice significantly reduces the likelihood of IT-related problems, allowing businesses to operate with greater stability and confidence.
Access to specialized IT expertise
According to a Gartner Report, Market Share Analysis: Application Implementation and Managed Services, Worldwide, 2022, many companies are undertaking new initiatives to migrate to the cloud or implement AI, but some may not have the expertise in-house to handle these relatively new technologies.[1]
MSPs provide access to a team of highly skilled IT experts with specialized knowledge in various domains, including network administration, cybersecurity, cloud solutions, and end-user support. This type of expertise ensures that businesses can stay up to date with the latest technologies, implement robust security measures, and optimize their IT systems for optimal performance.
Scalability
As small businesses grow, their IT needs to evolve and expand. MSPs offer the flexibility and expertise to scale IT infrastructure seamlessly, accommodating increasing workloads, new technologies, and expanding user bases. This practice allows businesses to adapt to changing demands without compromising performance or security.
If you're thinking of migrating to the cloud, MSPs can also guide cloud-based solutions, which offer even more scalability along with being more cost-effective. With an MSP as a trusted partner, businesses can focus on growing without being held up by IT limitations
Disadvantages of MSPs for small businesses
Cost
Outsourcing IT management to an MSP comes with associated costs, including monthly fees for services and potential charges for additional support or infrastructure upgrades. While MSPs can provide significant cost savings in the long run by reducing downtime, enhancing productivity, and preventing major IT issues, the upfront costs may be a consideration for some small businesses.
Potential communication challenges
Effective communication between the business and the MSP is crucial for a successful partnership. However, potential communication challenges may arise, such as delays and response times, misunderstandings regarding requirements, or discrepancies in priorities.
Vendor lock-in
Businesses may experience vendor lock-in if they become overly reliant on a specific MSP and struggle to switch providers due to proprietary systems or data integrations. This lock-in can limit flexibility and choice, potentially hindering the ability to negotiate better rates or explore alternative solutions.
These disadvantages shouldn't keep you from using MSPs because all of them can be mitigated by using best practices when working with MSPs. We'll look at those next.
Tips for minimizing the downsides of using an MSP
While managed service providers offer many benefits for small businesses, it's important to approach the partnership strategically to minimize potential drawbacks and maximize its value. By following these tips, you can effectively navigate the MSP landscape and establish a successful long-term partnership:
Choose an ideal fit: While some MSPs may say they are the best for small businesses, not all MSPs are created equal. Conduct thorough research and evaluate their expertise, reputation, and track record. Consider their experience working with businesses similar in size and industry to yours. Use this IT services hiring guide to help you.
Set clear expectations: To prevent misunderstandings and potential conflicts, establish clear expectations from the beginning. Define the scope of services, service level agreements (SLAs), and response times in a detailed contract. Clearly articulate your business goals, priorities, and budget constraints to ensure the MSP aligns the services they provide to your business needs.
Maintain open communication: To minimize potential communication issues, businesses should define communication protocols with their MSPs. Establish regular check-ins, feedback sessions, and reporting mechanisms.
Monitor performance: Monitor the MSP's performance to assess its effectiveness and identify areas for improvement. Establish metrics to track key performance indicators (KPIs) such as uptime, response times, and resolution rates.
Have a backup plan: While relying on an MSP can significantly reduce the burden of IT management, it's important to maintain some level of in-house IT expertise. Train key staff members on basic IT troubleshooting and maintain familiarity with your IT infrastructure to handle minor issues independently. Also, consider establishing a contingency plan in case of an unexpected disruption or termination of the MSP contract.
Empowering your business with MSPs
Finding an MSP armed to securely manage, optimize, and support your IT infrastructure can transform your business operations. By leveraging their enterprise-level services and expertise, your SMB can:
Operate with greater reliability.
Empower staff to drive progress without the distraction of tech headaches.
Access new capabilities via scalable and flexible managed solutions.
Benefit from increased security
However, finding the right MSP requires doing your due diligence by vetting each potential partner's experience in boosting small business productivity and checking feedback and reviews from past customers.
To learn more about working with managed service providers, check out the following resources: