Does an IT Managed Service Provider’s Size Matter?

November 13th, 2019 | Managed IT Services, Small Business

When comparing IT outsourcing providers you need to look at a number of factors, one of which is the size of the provider. It’s important you pick a provider that is the right size for your business. Unfortunately, many businesses don’t do proper research and pick an inappropriately-sized IT provider, leaving them bound to a provider incapable of managing the company’s IT needs effectively for the remainder of their contract.

How do you choose an appropriately sized IT provider?

If you have a smaller business, with fewer than 25 users, you should consider selecting a smaller provider to avoid exceeding your IT budget or paying for services you won’t be able to make use of. However, companies with a greater number of users will require support a smaller managed IT services provider may be unable to supply. A larger managed IT service provider (MSP) would be capable of providing a greater number of subject matter experts, offering more services, performing quarterly business reviews (QBR) to assess their performance, and suggesting technology for the future of your IT environment.

If your organization requires Chief Information Officer (CIO) consulting or a robust IT security system, then going with a larger MSP may be necessary. Services such as CIO-level consulting are very expensive. Through economies of scale, larger MSPs can offer those services far cheaper than you’d be able to get otherwise.

A low-cost IT managed service provider means low-level service

Businesses sometimes resort to a smaller managed IT services provider simply because they are cheaper. However, MSPs that are smaller, that offer services equivalent to a larger managed IT services provider, will be priced similarly to their larger competitors.

Usually, managed IT services providers who employ low-cost pricing models tend to cut expenses in areas such as staff size and service quality, which could affect the success of your IT environment and overall business productivity.

Personalized isn’t always profitable

There’s a common misconception that smaller MSPs offer better, more personalized services to their clients. However, managed IT services providers of this scale usually lack the resources to complete the necessary back-end processes, such as 24/7/365 network monitoring, proactive IT planning, and staying updated with new technology to ensure they’re building a strong business while serving you effectively. Frequently, smaller MSPs rely upon customer service to create a façade of better overall service, distracting from lack of back-end support.

Is a larger IT service provider always better?

While it’s not recommended to choose too small of a managed IT services provider, it’s also not advised to select one that is too large or managed by a public corporation. A larger MSP is better positioned to have advantageous hiring processes and technology foresight. However, MSPs owned by public corporations are driven by different motives and lack the customized IT service your business requires to function at its full capacity.

Managed IT services providers backed by equity money and venture capital may have difficulty maintaining client-focused service and creating a region-specific, principal-led business atmosphere. Their size may appear to offer security and stability, but generally, the corporate MSP model lacks the personalized planning and regional knowledge necessary to understand your particular business and the environment it operates within.

If you’re business still is unsure what size MSP you should be considering check out our IT managed services and contact us today and we can help!