Choosing the Right MSP Contract: Essential Questions Every Business Should Ask

As of 2022, there were 33.2 million small enterprises in the United States, making up a staggering 99.9% of all businesses, according to the U.S. Chamber of Commerce. Reported by Mordor Intelligence’s US Managed Services Market Report, this rapid growth has driven a significant demand for managed IT services as small businesses seek cost-effective and efficient solutions for their growing IT needs.

If you are among the many businesses exploring a Managed Service Provider (MSP) partner, choosing the right MSP contract is crucial. Before signing a MSP contract, it’s important to ask the right questions to ensure the Managed Service Provider agreement supports your business goals, IT operations and, long-term success.

Why Selecting the Right MSP Contract is Crucial

Good MSPs can take a huge load off your business and help you manage your IT. But selecting the right MSP contract ensures that the terms, services, and pricing match your business’ needs. Some of the deeper- level benefits of a good MSP contract include:

Better Operational Efficiency: Who doesn’t want things to run a little smoother? The right MSP can provide continuity and help you find the right tools to improve your workflow.

Improved Security: It takes a lot of work to become a cybersecurity expert, and with an MSP, their team can manage that for you. They can provide thorough firewalls, threat detection, and compliance.

Increased ROI: When your technology runs smoothly and downtime is limited, your business can perform better. MSPs can have a positive impact on your business prospects.

However, the wrong MSP contract can be a liability, such as:

Lack of cost transparency can tank your budget unexpectedly.

A one-size-fits-all approach can lead to conflict with your company.

Half-baked security measures can make your organization more vulnerable to cyberattacks.

To help you avoid a bad MSP trainwreck, you should first determine what your IT needs are.

Understanding Your Business Needs Before Signing an MSP Contract

It’s important to understand what your business’s IT goals and needs before evaluating MSP contracts. Knowing where you need help will allow you to choose an MSP that can best support your vision and IT requirements.

Here are three things you should do before signing a managed IT services agreement:

Identify Your Challenges and Goals with IT

Before considering any MSP, understand how your business is doing with IT. What gaps or areas need improvement? Where do you experience downtime, extra costs, or risks? Make a list of these challenges and what you want to improve with the help of an MSP. A professional IT review can help.

Figure Out Where Your Team Could Use Some Help

If you have an internal team, meet with them. Ask them what things are going well and what things are hard to keep up with. Outsourcing with an MSP is a great way to improve every area of IT, but many companies opt for what their team and company need the most.

What’s Your Business’s Long-Term Strategy?

Where do you want your business to be in five years? Ten years? How many employees do you want to have, and where do you want to expand? Understanding your business growth vision will give you a framework to see where your IT strategy fits in.

10 Essential Questions to Ask Before Signing an MSP Contract

If you’re not sure what makes a good MSP, these questions can clear things up. They’ll also help you weed out MSPs that aren’t a great fit for your company. Read the MSP contract and ask yourself these ten questions:

1. What Services Are Included in MSP Contract?

Ensure you know which services are part of the core agreement and which ones are add-ons. For example, does the MSP offer both reactive support (fixing issues) and proactive support (monitoring and prevention)?

Ask about specific services to understand their ins and outs. If you need helpdesk support, security updates, or system backups, get them spelled out.

2. How Does the MSP Handle Security and Compliance in the Contract?

Ask about their approach to cybersecurity. How do they identify and mitigate risks, and what’s their role in the event of a breach?

Request examples of compliance. They should be following any industry regulations (e.g., GDPR, HIPAA, or CMMC).

3. What Is Their Experience in My Industry?

If an MSP has experience with your particular industry already, they will be more capable of handling specific questions or compliance needs.

If they do have experience, ask them for references and case studies to see how they manage IT for companies like yours.

4. How is Support Provided and What Are the Response Times?

Nothing is worse than needing to explain something to a human and getting a support bot instead. Ask about 24/7 monitoring and support if that’s important to you.

Do they have guaranteed response times in the MSP contract? Don’t be shy about asking questions before you sign.

5. What Are the MSP Contract Terms of the Service Level Agreement?

The Service Level Agreement (SLA) should provide standards like uptime guarantees (like 99.9%), ticket resolution deadlines, and performance expectations.

Accountability is key. Look for any penalties for SLA violations or discuss them with your provider.

6. How Does the MSP Approach Proactive IT Management?

Do they offer consistent monitoring, patching, and system updates? How do they implement these measures?

Do they have a good track record? Ask for success stories and how they can improve your uptime.

7. What is the MSP’s Disaster Recovery and Business Continuity Plan?

Make sure they have a plan in place, then ask for details. How will they approach protecting your data and information in case of a disaster or incident?

How do they provide support during a disaster recovery and business continuity plan? What are their data recovery procedures? If they don’t have confident and proper solutions, that can be a red flag.

8. How Transparent is Their Pricing Model?

Analyze the agreement. Do they have clear, upfront, flat-rate pricing? Or do they have hidden fees they didn’t advertise? Don’t get locked into something you can’t afford.

Ask for a detailed breakdown of services and pricing before signing the MSP contract.

9. What is the Process for Onboarding and Transition?

Hiring an MSP is supposed to help, not be a hassle for your team. Learn about what the MSP will do to ensure a seamless transition.

Ask how they handle potential downtime during the onboarding process.

10. Can the MSP Scale with My Business?

Here’s where understanding your business’s journey plays a part. Can your future MSP support your company’s growth plans? Can they stay on board with new technologies?

Flexibility is more than a helpful perk. It’s a necessity for long-term support and expansion.

Red Flags to Watch Out for When Evaluating MSPs

If you are meeting with a managed services provider that has any of these characteristics, run. They are likely a poor fit and won’t provide the support your business needs.

Lack of Transparency: If they aren’t upfront about their services and pricing, avoid them. This will help you avoid getting hit with hidden fees later.

Poor Communication: If they don’t communicate clearly and consistently, it’s a bad sign. Your MSP should be easy to reach and provide regular updates on your systems.

Limited Expertise in Cybersecurity: If they can’t handle basic security measures, they are not worth it. Cybersecurity should be a top priority, and your MSP should be an expert.

One-Size-Fits-All Approach: If they don’t have time to listen to your individual needs as a company, steer clear. Not every business or industry needs the same thing.

Choose IronEdge for Long-Term Success

MSP contracts can be confusing, but the best MSPs are transparent and ready to help your company.

If you’re looking for the right MSP for your business, check out IronEdge’s award-winning IT services. We take the time to get to know you and your business needs so we can support your business’s growth.

Download Our Free Guide Today!

Get our e-book “How Managed IT Services Improves Scalability & Flexibility for Growing Businesses” and explore how modern IT solutions are changing the way businesses hire technology experts.