In the last White Board Wednesday video, we discussed the strategic decision of outsourcing your MSP. This week, we are continuing the conversation around outsourcing, however, we will be discussing signs to look for that show it is time to change your Managed Service Provider (MSP). According to Zomentum, “The Global Managed Services Market report 2021 suggests that the MSP market, which was valued at $155.91 billion in 2017, will reach $296.38 billion this year,” therefore there is no shortage of great MSP’s to partner with in 2021.
Question for you, because you’re involved, you and your team are involved in a lot of these discussions directly with fairly early on in the conversation.
So what percentage of the time is a what become ultimately becomes a client currently outsourcing, IT some functionality IT to an MSP versus those that are not outsourcing today, think they need to do it, but they don’t really know what that looks like yet.
I’d probably say seventy five to twenty five. Seventy five percent of the clients are transitioning from another MSP or from another outsourced type of technology support, maybe not managed services. Maybe they be consuming something like in a consulting model or like a block of time or paying a contractor by the hour to support their PC, things like that.
And does the conversation look different depending upon whether they’re, they currently are outsourcing versus those that are not?
For sure, because the organizations that are currently insourcing and considering outsourcing have thought through all of the strategic components that you and I were just talking about.
They’ve thought through, OK, does this does it make sense to have this salary on board? Are we getting what we need out of this resource? Is our bench deep enough? That’s a huge question right now. And a big advantage of moving to an MSP is now all of a sudden I’ve gone from one or say, two guys supporting my infrastructure to have a great set of knowledge on that specific set of gear. Right. But if I want to go transition to a new technology that they have no exposure to, they’re learning it from scratch.
And if I go to an MSP, they likely have a bench of experience with that platform or that product. And I can immediately go from zero to one hundred, deploy very quickly
Right, and a pool of talent that has specialties and different areas that you can tap into as you move from project to project.
So once you’ve had that conversation and you vet vet it out, yeah, it does make sense. Right. What are the trade offs between outsourcing, insourcing? What factors most heavily weigh in?
I mean, I’d say cost is probably the single the single largest factor. I mean, obviously, through an MSP and or an asset base subscription model, you know, I’m paying per per desktop, per laptop, per switch, per wireless access point per server. Those types of models scale out very well when you’re talking about that type of approach and in comparison to staffing bodies.
Managed Service Providers are useful for many reasons. Some of the most beneficial reasons include increased flexibility of the internal team, reduced costs, and increased accountability. However, bringing on an MSP should be viewed as bringing on a new business partner. With that in mind, not all relationships are perfect marriages. Here are signs it may be time for your company to find a new MSP.
The Communication Is Lacking
- One of the most important aspects to any business relationship is clear and consistent communication. The communication with your MSP should be no different. Additionally, you should have main points of contact for IT issues and not feel like you can not efficiently get a hold of the appropriate person in a timely manner. NETRIO offers 24/7/365 support, and we recommend seeking this when finding a partner.
Poor Project Management Skills
- We did an entire White Board Wednesday series on the importance of Project Management, and it is not something we take lightly at NETRIO. Communication is a huge component of project management, so if you are unsatisfied with the communication, the project management skills will not provide much more support. We recommend seeking a partner who has proven project management expertise and can give you the 24/7/365 support your company may need.
Your Company Has Outgrown The Relationship
- NETRIO is set up to scale with your business, and the right partner will always be able to support your growth. However, if you are feeling like your MSP is not constantly bringing innovation to the table or expanding its offerings as new trends and services expand, you may have outgrown your current MSP. When seeking a new MSP, consider a company that has the bandwidth to grow with you and accommodate quick changes.
If you believe your company has outgrown its current MSP and would like to explore NETRIO’s Managed Services, contact us to learn more. This blog post is part of NETRIO’s weekly Whiteboard Wednesday series. Follow along on Linkedin and YouTube each week as Brian and Mike discuss use cases, new technology, and trends.