5 Pitfalls to Choosing a new IT Managed Services Provider

If you have been looking to renegotiate your Businesses IT relationship or have been out to the market no doubt you will have heard of Managed Services. Many IT companies in Australia are transitioning to this form of service, which has been prevalent in the US for a number of years.

Managed Services is essentially a fixed fee, monthly support agreement which includes unlimited support and maintenance services in an "all you can eat fashion". In the old "pay as you go" model, it was in the interest of your IT company for your business to have more problems; as the more problems you have the more the IT company can bill. However Managed Services is "outcome" based - meaning the onus is on the IT provider to ensure you have as few problems as possible and your IT environment is running efficiently.

Because now the more problems you have the less money your IT company makes; both parties are aligned and working towards streamlining and solidifying your IT environment. Managed Services providers worth their salt will go one step further, deploying tools to monitor your servers, workstations and network devices in real-time, relaying information back to them so they can proactively identify any problems before they occur. This in turn drives proactive servicing of the devices on your network and keeps support low.

Managed Services Agreements are generally calculated based off the number of servers and workstations your organisation has. However like in most industries, not all managed services providers are equal. Here are 5 pitfalls we have identified in conjunction with clients who have moved from other MSP's:
 
#1 - Service Framework - Managed Services sounds good in principle but many IT companies have newly adopted, or under-resourced teams for effectively delivering Managed Services. Does the MSP have their own Network Operations Center dedicated to monitoring incoming alerts? Are there defined processes in place for their Managed Services Division? Do they have an effective support structure specifically for Managed Services.

#2 - Expertise/Credibility - Do they have solid references? Is the company and engineers Microsoft Certified? Have you visited their office to see their operation?

#3 - Reporting - Managed Services is about outcomes, but there still needs to be monthly reporting to demonstrate the value of the Product. Request some sample reports to see the type of information that you will be getting, and make sure when checking references to find out if they are sent regularly (a real gripe with people we speak to)! Are you getting reports on ticket response/open/close times? You want to make sure you keep your IT provider honest and that they are delivering on their service promise!

#4 - Size of their team - Small organisations often have difficulty implementing Managed Services effectively. There may be noone actively monitoring alerts and just not enough resources to be "proactive" - which is what Managed Services is all about. More often than not even companies with the best intentions may not be able to deliver due to their limited resources. Organisations with 15+ staff are more likely to be able to deliver a reliable, consistent service. On the flip side, larger organisations may lose that customer service focus and personal touch.

#5 - What feel do you get? Finally, the core of a great relationship is liking the people and company that you are partnered with. Go with your gut - does this company seem truely interested in your business? Do they seem like people who will go over and above to deliver you the customer service you deserve?

Managed Services definately adds value to a business if done correctly. Doing your due dilligence on your next partner could save your business countless hours of headaches and thousands of dollars in the long run.

Case Studies

IT Support Case Study "Starting out as a husband and wife team and growing to a 2 office business with 13 employees in just over 18 months certainly gave us a few headaches in relation to managing our IT requirements. We received no “service” from our previous IT Company" » Read More

Cloud Solution Case Study "Expanding a services business into new territories is never an easy thing, but R & G’s hosted desktop cloud computing solution let’s easily manage IT costs whilst having the ability to rapidly deploy new offices and equip staff literally anywhere." » Read More