Managed service providers (MSPs) offer significant benefits to businesses, ranging from cost savings and increased efficiency to improved security. However, MSP challenges can also occur when businesses outsource their IT services.

Businesses must be proactive in identifying potential problems and choose the MSP that is best equipped to avoid issues before they appear. Knowing exactly what you need from your MSP and asking the right questions before signing on the dotted line will help you stay ahead of common problems and maximize your business partnership.

1. Cybersecurity and Cyber Threats

Many customers rely on the security services that MSPs provide to keep their data safe. Preventing and dealing with sophisticated security threats is arguably the greatest managed service provider challenge. The issues MSPs face in terms of cybersecurity are well-documented. They include:

• New kinds of malware, phishing tactics, and other threats
• Using artificial intelligence to launch cyberattacks
• The perennial problem of human error, partly caused by inadequate training or awareness
• Poor cybersecurity hygiene

Solution: Prioritize Security Credentials

Partnering with an MSP with excellent security credentials is the best way to protect your IT estate. Look for MSPs that offer advanced all-in-one cybersecurity platforms. This type of platform makes it easier for MSPs to protect their customers, as everything is controlled from a central tool.

However, even the best tools are liable to fail if staff don't receive comprehensive and regular training on how to use the software, prevent data breaches, and stay updated on new and evolving threats that could impact your business. Therefore, you also want to look for an MSP that regularly upskills in this area.

2. Breakdowns in Customer-MSP Communication

It's only natural to want your IT problems solved as quickly as possible. Waiting to hear back from an engineer, being landed with a chatbot (with no option to speak with a human), or being passed from one person to the next isn't only incredibly frustrating; it also impacts your business's productivity.

In one survey about customer expectations, 82% of respondents in the U.S. said that they wanted to interact with a real person. This underlines the importance of offering customers efficient human interaction for troubleshooting IT problems.

Solution: Integrate a Collaboration Platform

Communication breakdowns are one managed services provider challenge that is easy to prevent. Using a collaboration platform like Thread minimizes communication problems between businesses and their MSPs by allowing employees to chat with technicians through the chat software they already use (like Microsoft Teams or Slack). This means MSP technicians can meet workers where they already are and provide similar communication and swift problem-solving capabilities to those offered by an in-house IT team.

Thread addresses one of the biggest pain points identified in businesses that use MSPs, which is the lack of effective and swift communication when problems occur. Using this communication platform offers workers a direct line to the right technical assistance, meaning productivity isn’t impacted by lengthy bottlenecks.

3. Lack of Support Staff

Many businesses choose to outsource their IT needs because it represents a cost-saving alternative to maintaining an in-house IT team. Unfortunately, some MSPs don't have the resources to fully support their clients and end up oversubscribing their services. This can lead to poor customer service as the technicians are spread too thin.

Solution: Choose an MSP with Unparalleled Customer Support

Poor service quality means more than communication breakdowns. When your MSP consistently provides poor service because of issues like slow response times or unresolved technical problems, it’s probably time to switch your provider. Poor support can hinder your operations by increasing downtime, decreasing productivity, and leaving you unable to keep up in today’s fast-paced business environment.

An MSP missing deadlines because they are overwhelmed can be greatly improved by using a cloud-based calendar and scheduling system. Suggest that your MSP use a centralized planning tool to organize their time and improve their customer support.

4. Compliance and Regulation Issues

Businesses that use digital solutions must ensure compliance with the relevant laws. MSPs have a key role to play in compliance, as they can help to keep you compliant (for a fee) and must also maintain compliance on their end.

The biggest challenge that MSPs face in this respect is that guaranteeing compliance in itself takes a lot of work. Businesses with limited resources won’t be able to dedicate endless hours to compliance and may use automated solutions to help them out.

When researching the MSP market, ask a prospective MSP if they provide services like:

• Automated compliance monitoring and reporting tools
• Robust compliance programs that simplify the process of meeting compliance regulations
• Excellent communication streams that are used regularly to update customers on their responsibilities and how to fulfill them

5. Budget Problems or Downsizing the IT Department

Budget is one of the crucial influencing factors when deciding between an MSP or an internal IT team. Companies with shrinking budgets may also find themselves facing the decision to downgrade their MSP subscription or attempt to handle their IT needs themselves.

Solution: Negotiate with Your MSP

If you find you need to make IT cuts, discuss your options with your MSP. They may be able to offer you several solutions to reduce spending while retaining their most essential service offerings. Consult your MSP about the possibility of revisiting your Service Level Agreement. Your MSP may be willing to reduce the number of services it offers you without compromising your security or compliance.

Strategically selecting the most essential tools is a way MSPs can enhance service delivery while retaining customer relationships. Ultimately, the MSP industry is a competitive market and customer retention will invariably be a high priority for many of them.

6. Sub-Par Technical Expertise

As your business grows or evolves, you may find that it’s outgrown your MSP’s capabilities. You may also realize when you start with your chosen MSP that its technicians lack expertise in important areas like cybersecurity, cloud computing, or technologies specific to your industry.

Working with an MSP that lacks the necessary skills to support your business as it grows can be harmful to your business. Being unable to troubleshoot problems or making wrong decisions can expose you to security vulnerabilities or missed opportunities for advancement.

Remember that your competition will likely have access to the IT services it needs to optimize its operations and stay ahead of the game. Choose a provider that can keep up the pace and offer strategic guidance.

Solution: Work with an MSP with Proven Industry Experience

Research is key when choosing an MSP for your business. Make sure you hire a fully capable and qualified MSP that will make your life easier, not contribute to your problems.

Read customer reviews and make sure you're satisfied that the MSP you choose will be able to offer you the service you require. Failure to do so will result in errors, downtime, and reduced productivity.

Maximize Your MSP Business Partnership

The best way to prevent avoidable managed services provider challenges from becoming a burden for your business is to conduct thorough research before committing. Be clear about your current and future needs and select an MSP with proven industry experience and technical knowledge.

Ask prospective MSPs how they face specific issues, the safeguards they have in place to prevent problems from occurring, and how they have addressed similar challenges in other companies. Place a high priority on communication to ensure that any problems that do occur are resolved quickly. Integrations such as a collaboration platform support efficient and timely service and ultimately the best possible service from your MSP.