So, you’ve taken the leap and decided to enlist the expertise of an IT Managed Service Provider (MSP) for your company’s technology needs. Congratulations! Managing your IT Managed Service Provider contract effectively is crucial for success. While this move can significantly reduce costs, it’s pivotal to invest time in understanding the terms of engagement surrounding your ‘IT Managed Service Provider contract.’ Beyond the usual legal jargon handled by your attorney, effective management of your MSP starts with a well-crafted agreement.
Tip #1: Define Service Parameters Clearly
Understanding what your MSP will and won’t do is pivotal. Scrutinize this section, ensuring your specific requirements are explicitly addressed. Before meeting potential partners, outline your list of services to avoid generic promises. Dive into the details, inquire about monitoring specifics (especially for Mac OS X versus Windows), grasp the support hours, and discern what falls outside their scope. Review past issues and resolutions, ensuring coverage aligns with your historical needs.
Tip #2: Scrutinize the Service Level Agreement (SLA)
Analyze the SLA meticulously, as it dictates how swiftly the MSP responds to IT issues. Be wary of one-sided metrics and understand severity levels. Recognize that downtime impacts your business, and negotiate a meaningful bill credit for service failures. Leverage SLA breaches as grounds for termination.
Tip #3: Collaboratively Set Performance Metrics
Agree on performance metrics, combining the MSP’s internal measurements with your specific expectations. Visit their headquarters to witness their operations and leadership team responsiveness. Building a strong relationship requires active participation from both parties.
Tip #4: Secure an Exit Strategy
Avoid long-term contracts without an early termination option. Insert a clause allowing termination without penalty, providing 30-90 days’ notice. If the MSP balks, consider a performance-based exit clause or reduce the term to keep them on their toes.
Tip #5: Manage End-of-Term and Renewal Provisions
Note the automatic renewal clause and set a reminder well in advance (ideally 30 days) to assess whether to continue or seek alternatives. Avoid last-minute decisions by planning at least 90 days ahead.
Bonus Tip: Schedule Regular Review Meetings
Establish regular meetings to review expectations and performance, ensuring alignment with agreed-upon metrics. Regular communication fosters a proactive approach to addressing issues and maintaining a successful partnership.
Final Thoughts
Running a business doesn’t necessarily mean mastering the tech aspects. Seek professional assistance to review agreements and uncover potential challenges. Whether it’s your MSP contract or other services, investing a couple of hours can save you from headaches down the road. Reach out today to explore how we can assist with your MSP agreement or other tech-related services.
We hope these tips empower you in navigating your IT Managed Service Provider contract. Feel free to share your thoughts in the comments below.
You made a great point about service level agreements and how they can help you define time measurements for their response. My husband and I are looking for a managed IT service that can help his business control the technology they use on a daily basis. We will keep these tips in mind as we search for a professional that can help us best.
Hi Vivian – thanks for your comment. Most MSPs work on balancing costs with revenue. True MSP partners will look to solve a problem permanently thru proactive responses rather than waiting on a phone call. Most will not do that. The goal is get the call closed as quickly as possible. They fail to realize that fewer calls mean more revenue as they can take on more customers without risking quality of service. Be sure to read my related post on MSP Technology Contract Pitfalls before you ink the next agreement. Stay safe from COVID-19 and have a great rest of your day. //Steve
I like that you said that you should schedule a date for a review of the performance. My best friend told me the other night that he and his business partners were looking for solutions that could enhance the smooth operation responsibilities of their business workplace, and he asked if I had any idea what would be the best option to consider. Thanks to this instructive article, I’ll be sure to tell him that he can consult managed IT service as they can provide more information about their rates and services.
John – these tips can go a long way in making the agreement work for the business. Thanks for the comment.