6 Steps to Choose the Right MSP: Evaluating and selecting the best MSP for a business’s needs

Posted By: Kami TippettPosted on April 29, 2024May 14, 2024

Managed Service Providers (MSP) enable small businesses to add specialized expertise and technology to their teams. Instead of struggling with complex IT challenges on their own, an MSP partnership helps them focus on core competencies and growth. This guide can help you select the best MSP for your business.

Assess Your IT Requirements

Identify your current IT setup and envisage your future needs. Consider scalability, potential technological advancements, and ways an MSP can support your growth.

Set Your IT Budget

How will you allocate funds for MSP services? Remember, investing in quality IT management can save costs in the long run through efficiency and preventing expensive downtime.

Include Compliance and Security Needs

Understand the compliance standards and security requirements specific to your industry. Ensure any MSP you consider can meet these standards to protect your business and customer data.

Research Potential MSPs

Start with online directories, business networks, and recommendations from peers in your industry. This broad approach can help you compile a list of potential MSPs with proven track records.

Investigate each MSP’s reputation through reviews, testimonials, and case studies. Look for feedback patterns that indicate reliability, responsiveness, and expertise.

Consider and Evaluating Proposals

Provide MSPs with detailed information about your IT needs, expectations, and specific requirements. The more information they have, the more tailored their proposal will be. Expect to see detailed service offerings, SLAs (Service Level Agreements), support details, and pricing models. These elements are crucial for comparing MSPs.

Gartner says IT contract negotiation strategies should focus on both the vendor and the deal, advocating detailed cost breakdowns and including price protection clauses in contracts.

They say you should demand detailed justifications for any proposed price hikes and ensure they correlate with actual economic indicators and service enhancements. You can also leverage data points from the Consumer Price Index (CPI) and Employment Cost Index (ECI) to empower your negotiation.

As you evaluate an MSP Proposal:

Review service offerings to ensure services align with your needs
Analyze cost structures to determine if they fit your budget.
Check compliance and security measures to verify they meet industry standards.
Assess scalability and flexibility and determine if they can accommodate your business growth.
Examine SLAs and Support Plans to evaluate response times and support channels.
Consider communication and reports, including frequency and types of reporting.
Watch out for red flags like lack of customization (one-size-fits-all-approaches), vague SLAs or hidden costs (demand transparency), and poor reviews (the epitome of warning signs).

In its report on Next-Generation Managed Services, the Harvard Business Review advises companies to watch out for a lack of emphasis on continuous improvement, innovation, and adaptation to emerging technologies.

Make the Decision

Compare your final managed services proposals side-by-side using a chart or checklist to objectively compare MSPs. A good partnership is essential for a long-term relationship, so don’t be afraid to trust your instincts and gut feelings.

Check references and case studies to learn everything you can. Direst feedback from current or past clients can be invaluable.

As you negotiate terms and agreements, don’t hesitate to negotiate to get the best deal. Make sure the MSP can provide an optimized onboarding process and a transition communication plan.

We invite you to consider Axigent Technologies Group

Choosing the right MSP requires a thorough evaluation but is essential for your business’s technological health and growth. Our comprehensive solutions can help address your needs, from daily coverage to specific projects.