Once you have decided to pursue a potential co-managed relationship with an MSP, you will want to make sure you take a deep dive into your existing operations to determine the right partner for your business. First, you must audit your internal IT department and determine your strengths and weaknesses, including experience, knowledge, skills, tools, and resources. After you have a clear picture of your gaps, you can begin setting departmental goals and decide which services and resources you should outsource to meet those goals.
Partnership Clarity
Managed services providers deliver several benefits to businesses that outsource their IT needs, and one offering comes in the form of co-management. While your in-house IT team shares the responsibility of managing the IT systems, processes, and strategies, there are many different service models in the co-management space. Therefore, it is crucial to pick a partner that can genuinely complement your internal team. Make sure to research your options carefully and take note of the following:
Contract Details
A co-management contract is a formal agreement between an MSP and their client that outlines the scope of services, roles, and responsibilities of each party. It’s essential to have a clear and concise co-management contract in place to avoid any misunderstandings down the road. Here are some key elements to include in your co-management contract:
- A detailed description of the services to be provided – Include as much detail as possible, so there is no room for misunderstanding.
- The roles and responsibilities of each party – Clearly define who is responsible for what so everyone is on the same page.
- The term of the agreement – Make sure to specify the duration of the contract and any renewal terms.
- Pricing and payment terms – Include a breakdown of all fees, charges, expenses, as well as when and how they will be paid.
- Confidentiality provisions – Include language that protects confidential information shared by either party for the duration of the agreement.
- An arbitration clause – This clause will outline how any disputes that may arise will be resolved outside of court.
By including these key elements in your co-management contract, you can help ensure that both parties are clear on their expectations and avoid any misunderstandings down the road.
Technology and Processes
When choosing an MSP, it’s important to understand the technology and tools they use along with the processes they have in place for handling various networking or IT issues. Of course, you want to look for an MSP that uses modern technology, including high-speed internet and cloud-based tools. Still, you must also fully understand their security processes and procedures, how they back up data, what they do when the power goes out, and other rare occurrences in your industry. Finally, you need to know that whatever happens, your business is safe in the hands of an experienced provider who already has action plans to mitigate a complete list of relevant challenges.
Communication Method
Managed service providers must communicate effectively with their clients to provide quality service. MSPs can use various methods to communicate with clients, including email, phone, video conferencing, and face-to-face meetings. They can also stay in regular communication by using reporting tools to send periodic updates on the status of their IT infrastructure. This can give you peace of mind knowing that they’re on top of things and provide you with valuable data points that you can use to make informed decisions about your business. Each method has its strengths and weaknesses for each situation, so your co-managed IT provider must be flexible in how they can best match your preferred communication methods. Make sure to clearly understand the agreed-upon communication arrangement (including emergency protocols) before pushing forward with a formalized relationship.
Alignment
An experienced co-managed IT provider can be a good partner for many businesses, but you have an even better relationship when you share similar values, missions, and goals. For example, an MSP focused on providing quality support will be a good fit for your business if you value customer satisfaction. Or, if you share the same commitment to innovation, you will be able to create new solutions to problems and explore new opportunities together. Furthermore, if you can find an external provider with similar passions or a commitment to like-minded outreach programs, you can power an even stronger co-management bond.
Experience
When deciding on a co-managed IT provider, it is critical to thoroughly research their experience to make sure they are the right MSP for your business. It is a good idea to consider the following:
Expertise
Any business looking to outsource managed IT services should do their homework first, as their involvement dramatically impacts a company’s overall health. When selecting an MSP, ensure you fully understand their expertise, processes, strategies, response plans, and past projects. It is always a good idea to take a deep dive into their overall experience in your industry and to make sure that their expertise aligns with your future IT strategies so you can be assured they will be a great partner for the long haul.
Take your time with the due diligence process, as it will help ensure you select an MSP that is a good fit for your company and can provide the level of service you need to stay competitive.
Ask for Referrals
Don’t forget to ask for referrals from other businesses or colleagues who have used an MSP in the past, especially in a co-management partnership. Getting a referral from someone you trust can be a great way to find a reputable and reliable company.
Read Reviews
Another great way to determine whether an MSP is right for your business is to read reviews from other organizations that have used their services. Hearing first-hand accounts from actual customers can give you a good idea of what to expect from an MSP in a co-managed relationship.
Flexibility, Scalability, and Adaptability
Flexibility, scalability, and adaptability are three essential qualities of an MSP. After all, you want a partner that can grow with you as your business expands. But what do these terms really mean?
- Flexibility refers to an MSP‘s ability to adjust its services to meet your changing needs.
- Scalability refers to an MSP‘s ability to increase or decrease its services as your business grows.
- Adaptability refers to an MSP‘s ability to respond quickly and effectively to changes in the market.
In short, you want a flexible, scalable, and adaptable MSP. With such a partner by your side in a co-managed IT relationship, you can rest assured that your business will be able to weather any storm.
Local vs. National Partner
When choosing an MSP to co-manage your IT, businesses have two main options: a local or national provider. Each has its advantages and disadvantages, so choosing the one that delivers the most value to your business is important.
- Local MSPs are typically smaller and more flexible than their national counterparts. They typically can offer more personalized service and are usually more familiar with the local business environment. On the downside, local MSPs may have less experience dealing with large-scale projects and may not have the same resources as national providers.
- On the other hand, National MSPs typically have more expertise and resources to apply to the various IT projects you may have on your wish list, and they can offer a more standardized level of service. However, national MSPs can be less flexible than local providers and may not be as familiar with the local business environment.
Until recently, these have been your choices — Local vs. National. However, some unique MSPs have recently started taking a hybrid approach to meet the changing needs of the industry. Through rapid organic growth and strategic acquisitions, some national players are starting to have a very local presence.
- The Hybrid MSP combines the above two options and creates a model where you can get the best of both worlds. These MSPs have the size to supply any resourcing needs you may have in the future and the expertise to handle nearly any project. Yet, they also have physical offices in your local communities and can deliver the personal touch and flexibility you want. These providers are most likely moving upstream to the mid-level or enterprise markets, but if your business fits their target size and scope, a Hybrid MSP could be a great fit.
Ultimately, the best type of MSP for your business depends on your specific needs and what you value most in a co-management partner.
Cost
When selecting a partner to co-manage your IT infrastructure, you should find a provider that can work within your budget. Here are a few things to do before signing an agreement with an MSP:
Understand Your Financials
When it comes to partnering with an MSP, there are a few things you should do first to make sure the relationship is a good fit for your business. One of the most important is auditing your financials and understanding what your business can afford. This will help you choose an MSP within your budget and avoid any financial surprises down the road. Additionally, taking a deep dive into your financials will give you a better understanding of your company’s IT needs and help you determine the appropriate scope of work for the relationship. By doing your homework up front, you can ensure that partnering with an MSP is a positive experience for you and your business.
Honesty Is The Best Policy
When it comes to working with a quality MSP, honesty is the best policy – especially in regard to your budget. They need to know what tools and resources they can utilize to help you achieve your desired goals. If you’re not forthcoming about what you can afford from the beginning, they may recommend solutions that are out of your price range, and an excellent co-managed partnership fit can go up in flames before it even starts.
Pricing Models
Once you’ve defined your needs and received co-managed IT proposals from MSPs, it’s time to compare pricing. While this seems like a simple comparison, providers can have very different pricing models. It is vital to pick the one that best suits your organization today while planning for flexibility based on altered circumstances. MSPs typically charge for their services in one of three ways: hourly, per project, or retainer.
- The hourly model has been the most common in the past, as it’s simply a matter of paying for the time the MSP spends working on your behalf. Your business may pay a premium for time worked, but it does offer flexibility on when and how to engage the provider.
- The per-project model is less common, but it can be beneficial if you have a well-defined scope of work and timeline. With this arrangement, you’ll pay the MSP a set fee for milestones hit and project completion.
- The retainer model is becoming much more popular in the world of managed IT as MSPs have started building their businesses around its improved stability for both parties. The provider can apply economies of scale and expertise across its entire client base and has built-in flexibility to scale up or down based on your individual needs. You will most likely need to sign an agreement that binds you to a monthly payment for the foreseeable future, but if you plan on being in business for more than a few years, this can be a great option.
Each pricing model has advantages and disadvantages, so choosing the one that makes the most sense for your business is essential.
Watch Ongoing Expenses
Once you have solidified a co-management relationship with an MSP, it’s important to monitor the associated expenses over time and compare them against the cost of hiring additional in-house IT staff. Of course, there are other factors to consider, such as the level of expertise and support provided, but at the end of the day, it’s all about ensuring you’re getting the best bang for your buck.