5 Red flags to watch out for when evaluating managed services providers

5 Red flags to watch out for when evaluating managed services providers

Outsourcing might be the trend these days, but far too many businesses don’t look beyond cost savings when evaluating potential service providers. While outsourcing your IT reduces cost, cheaper doesn’t always mean better. What really matters is adding value to your organization, but that’s not likely going to happen if your only priority is to save money. In no case is this truer than with managed technology services, in which the market is fast becoming saturated with low-quality vendors that don’t look beyond short-term gain.

Here are some of the telltale signs of the sort of managed services providers (MSPs) you’ll want to avoid at all costs:

#1. Every call sounds like a sales call

Good MSPs aren’t just vendors. They’re business partners whose own success is driven by that of their clients. The relationship between an MSP and a client is an ongoing exchange of value that’s supported by ongoing strategic guidance and impeccable customer support.

If, however, every interaction with an MSP is characterized by constant upselling and pitching, you can be sure that they don’t have your best interests at heart. On the other hand, if your relationship adds true value to your organization through shared expertise, then you’ve probably partnered with a winner.

#2. They refuse to provide references from similar clients

Customer success is a driving force behind any good company, and your MSP should put the success of your organization first. Their very existence depends on it. If they can’t demonstrate a proven track record of excellent customer service, then chances are they’re in it for short-term gain and nothing else. It’s imperative that you ask for references and seek feedback from other companies who have worked or still work with them.

#3. There’s minimal industry-specific expertise on offer

One sign of an excellent MSP is when they tell you that they can’t work with you because they don’t have sufficient understanding or experience with your industry. The best MSPs strive to create superlative business relationships through industry-specific knowledge and tailor-made solutions. That’s why you should only be looking for MSPs that specialize in your industry. After all, they’re not just technology experts — they’re industry experts as well. Be wary of any MSP that wants to be everything to everyone. Chances are they won’t deliver any real value.

#4. Their technical partners don’t live up to expectations

People judge others by the company they keep, and you should do the same when it comes to evaluating MSPs. MSPs often have numerous technical partners of their own, such as cloud providers, cybersecurity vendors, and VoIP services. If any of their technical partners have a poor reputation or have suffered a major data breach recently, then you’ll want to be wary of getting into a relationship with them. An MSP should always be transparent about who they work with, and they should be able to provide you with a suitable range of options to suit your unique business needs.

#5. They have suffered a major data breach

It’s practically impossible for smaller businesses to achieve the same level of cybersecurity as that of a giant like Microsoft or Google, which is why many choose instead to partner with an MSP. In fact, security and compliance should be overarching priorities for any MSP, which is why a major data breach is usually enough to put them out of business for good. Not only does this mean compromising on security by putting your data in their hands, but it also means they probably won’t be around much longer.

ProSource Technology Solutions offers a complete range of managed technology services to organizations in and around Orlando. Call us today to find your solutions.