The benefits of signing a long-term managed service provider (MSP) contract are a big topic of conversation in the rapidly expanding MSP market. SMBs all over the country are looking to get their digital transformation (DX), cybersecurity, marketing, and more monitored and maintained by service providers.
In fact, outsourcing IT in particular is so popular that 75% of SMBs already do it.
The primary reason for this is the drastic changes that digital technology has made to the business world. In order to compete, companies have to regularly implement new solutions to further their digital capabilities.
So now that SMBs are investing more heavily in managed services, the next question is what kind of relationship should they want to have?
Most businesses will be familiar with the somewhat outdated break/fix model the which has been predominant for many years. But with networks becoming increasingly complex and the protection of data more important than ever, flaws in the break/fix model are more apparent.
This method simply isn’t viable for many businesses anymore. SMBs have begun seeking a proactive, long-term service model instead.
Today, we’re going to be taking a look at the benefits of a long-term MSP contract and how this can suit the goals of a modern digital transformation.
If you’re looking for a long-term partner who can help your business grow, Impact is here to help. Get in touch with a specialist today.
Business Advantages to a Long-Term MSP Contract
Signing a long-term agreement with an MSP can yield significant business advantages that give you a leg up over competitors, including:
- Better ROI: The longer the contract, the more value businesses can get from it. As your contracted MSP’s knowledge base about your business, operations, teams, and infrastructure grows, so too does the potential for innovation, the speed of implementing new technologies, and the strategies built to keep your business on the cutting edge.
- Dedicated Support: A long-term managed services agreement with an MSP gives businesses access to dedicated support personnel who are always available to help smooth over challenges, make adjustments, and train employees on best practices. When something goes wrong, having a partner who is ready to help at the drop of a hat can be a difference-maker.
- Stronger Security: Familiarity with your systems for a cybersecurity provider can lead to much stronger security systems that are tailored to close vulnerabilities, watch danger areas, and provide more comprehensive coverage. Having better cybersecurity is a benefit on its own, protecting your business, customers, and workers every day with the best technology.
- Compliance as a Service: Compliance with data security regulations isn’t a one-and-done situation. It’s a changing set of requirements that requires ongoing support and adaptation to maintain. With a long-term MSP contract, you get access to that consistent help to ensure you maintain compliance at all times.
Invest in Your Future With a Long-Term Managed Services Agreement
This may seem self-explanatory, but a long-term managed services contract can set you up right for the future.
Business owners who are hesitant about acquiring an MSP partner might consider dipping their toes in with a provider who offers a short-term MSP agreement. However, do you really want a partnership with an MSP that has a continuously changing roster of clients?
Moreover, how invested will the MSP truly be in the digital transformation if the client can cut and run at short notice? And how dedicated will the customer be to the practices of the MSP if they have one eye on the exit?
Instead, consider partnering with a provider for the long-term so both parties are fully invested in the relationship. After all, digital transformation is a long-term and ongoing project which will last many years and requires extensive strategy and guidance. It’s not a fast one-and-done solution for all your problems.
For these reasons, think about getting a partner for the long-term—in the range of five years, not next year.
Related: Managed Service Providers: What to Look for in a Partnership
A Long-Term MSP Contract Means You Won’t Rush Your DX Plans
Unfortunately, for many SMBs, their digital transformation efforts end in failure in one way or another.
This is typically due to one or more of these reasons:
Implementing Too Much Too Fast
It can be tempting to install every new gadget and toy you set your sights on, but this is actually something that trips up most businesses. Too much too fast is a surefire way to upset the apple cart in an adverse way—something that should avoided at all costs in a DX strategy.
Of course, by its nature, digital transformation is a disruptive force.
This is why companies should work hard to ensure that there is a step-by-step plan to gently implement solutions into the business, like starting out with some cloud migration.
Sometimes a great ROI can be easily attained by finding low-hanging fruit in your company in need of digitization, like a cloud email server.
Take your digital transformation little by little, step by step, rather than going for the Hail Mary right away in a bid to get up to speed.
Digital Transformation Fatigue
DX fatigue occurs when workers start questioning “why”. It’s no secret that people are often hesitant to change their working ways, especially if they’ve been doing the same things over a long period of time. That’s the reason part of an MSP’s job is to temper and manage expectations for the digital transformation.
This means establishing a change management system that can best prepare workers for current and future implementations.
Poorly Thought-Out Planning
By engaging with a long-term MSP contract, you’re giving your partner the opportunity to draw up a successful long-term plan that doesn’t rush your DX strategy.
Long-Term Access to Solutions
Different MSPs will offer different solutions, in terms of both vendors and quality. One of the primary considerations an SMB will make when opting for a managed service provider is what solutions they provide and the vendors they’re partnered with.
It’s generally a good rule of thumb to see what technology vendors your MSP partners with. This will give you a good indication of the quality of vendor your partner opts for.
In 2019, Impact was ranked as the 28th best MSP in the world by Channel Futures, giving us some insight into what makes a managed service provider successful in the eyes of our clients.
For example, do they have a stack that is carefully curated, with a wide variety of different vendors? Or are many of their solutions provided by the same vendor?
Even in a field that frequently changes, like digital transformation, the right vendors change with it. At Impact, we’ve maintained long-term partnerships with a number of companies because they regularly prove that they do what it takes to stay ahead of the pack and keep a client’s business. They include:
- DocuWare: Enterprise content management solutions
- Kofax: Intelligent process automation and robotic process automation
- Microsoft
- Dynamics 365: Enterprise resource planning platform
- Power BI: Business intelligence platform
- Mendix: Low-code app development
- Smartsheet: Project management solution
These are the kinds of things you should be thinking about with your MSP, whether you’re looking at a short-term or long-term MSP contract. If you can see that they’ve put the time and effort into what they provide, then that’s a good indication of things to come.
If you’re content with the technology they use and the process they use to build their technology stack, then you have all the more reason to commit to a long-term managed services contract with them.
After all, it would be a pain to switch providers, only for them to use a raft of completely different technologies that require complete upheaval and additional onboarding for you and your staff.
Extensive Knowledge of Your Systems and Processes
When you partner with an MSP, you’re not just getting access to their technology stacks, but their expertise. While a traditional in-house IT team might have some experienced professionals who know your systems inside out, an MSP has a veritable army of IT experts to add to your team.
In addition, a quality MSP will also provide you with a vCIO, who will act as your main point of contact and has the best understanding of your infrastructure and goals. Additionally, you should have a partner that conducts regular reviews with you to ensure everything’s on track on at least a quarterly basis.
In short, your MSP partner should act as an extension of your business, rather than simply an outsourced operator. They should have an in-depth and comprehensive understanding of everything tech-related in your company.
With the right partner and a long-term MSP contract, over the course of several years there will be no one better placed to understand your ambitions and how to get you there.
For these reasons, having a long-term relationship with your MSP is a huge bonus to your digital transformation that cannot be understated.
Takeaways: Benefits of a Long-Term MSP Contract
- A long-term MSP contract offers you the kind of close relationship and dedication that you might not get from a short-term or rolling agreement
- With a long-term service agreement, MSPs won’t feel pressured to implement as many solutions as possible in a short period of time, making them less likely to derail your DX plans
- If your MSP has curated a great technology stack, sticking with them for the long-term will give you the benefit of their vendor partnerships and solution-vetting long into the future
- A long-term managed services agreement means that over a long period of time, your MSP will come to understand your systems and technologies better than anyone—putting them in a great position to help your business grow over the course of several years
Ready to work with a partner who is committed to sustainably growing your business over time? Contact an Impact specialist to start working towards your future today.
