Why Managed Services Clients Start with Low Cost, Low Quality MSP and Switch Later
Managed service providers (MSPs) offer various services to businesses of all sizes. These services can include:
MSPs can be an asset to businesses, as they can help to improve IT efficiency, reduce costs, and improve security. However, not all MSPs are created equal. Some MSPs offer lower-cost services but almost universally provide lower-quality services due to low pricing.
Businesses that work with a lower-cost MSP may initially save money but often pay more in the long run. This is because lower-cost MSPs cannot provide the same level of service as higher-cost MSPs.
For example, lower-cost MSPs cannot afford the same expertise, experience, capacity, mature processes, and effective systems as higher-cost MSPs. This can lead to problems for clients such as:
- Longer response times to IT issues
- Longer resolution times for IT issues
- Recurring issues
- More frequent outages
- Security vulnerabilities and breaches
- Frequent staff turnover at the MSP
- A lack of coherent IT strategy
- Regulatory compliance challenges
- Client morale issues
- Reputation / Goodwill damage
- Lost productivity of client staff
In addition, lower-cost MSPs may not be able to provide the same level of support as higher-cost MSPs. This can lead to problems such as:
- Difficulty getting in touch with support
- Unhelpful or unresponsive support staff
- Long wait times for support
- Not resolving issues at the root cause/band-aid fixes
- Reacting constantly rather than proactively enhancing and securing systems
As a result, businesses that choose to work with a lower-cost MSP may end up paying more in the long run. They may have to spend more on IT repairs, downtime, lost productivity, and security breaches.
Why Managed Services Clients Often Transition to a More Operationally Mature Managed Services Provider After Working with a Low-Cost, Low-Quality MSP
For several reasons, businesses that start with a lower-cost MSP often transition to a more operationally mature MSP. These reasons include the following:
- Dissatisfaction with the quality of service: Businesses dissatisfied with the quality of service from their lower-cost MSP often transition to a more operationally mature MSP to get the level of service they need.
- Increased IT needs: As businesses grow, their IT needs often grow as well, and they start to recognize that IT is a strategic asset in the modern business world. This can lead businesses to transition to a more operationally mature MSP that can handle their increased IT needs.
- Changes in business priorities: Businesses’ priorities often change over time. This can lead businesses to transition to a more operationally mature MSP that can help them achieve their new business goals.
The Benefits of Working with a More Operationally Mature Managed Services Provider
Working with a more operationally mature MSP can offer several benefits to businesses, including:
- Improved IT efficiency: A more operationally mature MSP can help businesses improve their IT efficiency by automating tasks, implementing best practices, executing projects seamlessly, and providing expert advice.
- Reduced costs: A more operationally mature MSP can help businesses reduce their IT costs by negotiating better deals with vendors, implementing cost-saving measures, and providing proactive services that prevent issues that harm client productivity.
- Improved security: A more operationally mature MSP can help businesses improve their security posture by implementing security best practices, conducting security audits, implementing new systems according to best-in-class security practices, and responding to security incidents quickly and effectively.
- Increased productivity: A more operationally mature MSP can help businesses increase their productivity by providing reliable and responsive IT support, freeing employees to focus on their core business activities, and helping companies to avoid IT downtime.
If you are considering working with an MSP, choosing a more operationally mature MSP that can provide you with the level of service you need is important. A more operationally mature MSP can help you improve your IT efficiency, reduce IT costs, improve security posture, and increase productivity. Please note that the employee count at the MSP is not an indication of operational maturity. Many MSPs can scale clients and employee count by selling low-cost, low-quality services and/or via mergers and acquisitions without ever developing into an operationally mature MSP. Therefore, ask detailed questions about the processes, procedures, and systems they use to evaluate their operational maturity. Moreover, pay attention to their pricing. As overly simple as it may seem, if their price seems low compared to competitors with similar service offerings, there are reasons, whether it be understaffing capacity, underskilled labor, or a lack of systems (overhead), all of which will indicate an increased likelihood of lower service delivery quality.
Not all IT Companies are Created Equal
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