5 Major IT Managed Services Provider Challenges

The world of business and the digital landscape often work in tandem with each other, a reality that has become even more prominent due to the pandemic-driven surge in remote work.

Recent statistics from the Ted Rogers School of Management in Toronto reveal that 78% of employees prefer to work from home, further increasing the demand for reliable, efficient, and secure managed IT services.

Yet, with this need comes a host of IT managed services challenges that can severely impact your growth if not managed appropriately.

“As the technology landscape continues to evolve, staying ahead of the curve is more than just a strategy, it's a means of survival,” says Matthew Held, CEO of Manawa Networks

“However, in order to survive, you need to recognize that managed service providers face their own set of issues.” 

But what exactly are some of the biggest managed services challenges? In this article, we’ll explore some of the most significant managed services providers challenges and how to mitigate them.

Understanding IT Managed Services Provider Challenges

Navigating through managed services challenges is a critical undertaking for any business in today’s market. These hurdles can impact your growth, siphon off your resources, and expose your organization to risks you cannot afford to take. 

However, knowledge is power. Once you understand these challenges, you can craft effective strategies to manage them and turn potential problems into solutions.

Challenge 1: Security Risks

Cybersecurity isn’t just a buzzword; it’s a necessity for every business. Today’s cyber landscape is fraught with threats that can lead to devastating data breaches. 

According to the World Economic Forum’s Global Risks Report, the global cost of cybercrime is projected to reach $10.5 trillion annually by 2025. As a business owner, the onus is on you to ensure that your data, systems and networks are properly protected.

That’s why a robust security service should be the cornerstone of your IT strategy. Encourage remote monitoring of your networks and systems, utilize end-to-end data protection measures, and regularly train your staff on security best practices. Remember, a proactive stance on security is always better than a reactive one.

Challenge 2: Scalability and Flexibility

Scalability is another key IT managed services provider challenge. As your business expands or contracts, your IT infrastructure must adapt seamlessly to keep up with your changing needs. 

The cloud migration trend has been pivotal in offering scalability and flexibility, with 94% of businesses worldwide utilizing the cloud as part of their day-to-day operations. Additionally, the COVID-19 pandemic resulted in 87% of employers to ramp up their cloud migration

However, despite the conveniences it offers, cloud computing comes with its own set of challenges for MSPs.

In order to avoid these issues, consider partnering with an experienced MSP that specializes in cloud services. They can help you design a scalable, flexible solution that grows alongside your business to help you thrive.

Source: FinancesOnline

Challenge 3: Keeping Up With Technological Innovations

Innovation is the fuel that powers the MSP market. However, staying ahead of the latest technologies can be a daunting task that goes beyond simply “keeping up with the Joneses.” 

The need for continuous learning and adaptation is a common managed services provider challenge that can leave many lagging behind.

To combat this, you should allocate resources for continuous training and development. Engage with industry thought leaders and participate in tech forums and expos. Keep an eye on emerging trends and determine how they can be integrated into your operations.

Challenge 4: Compliance and Regulatory Issues

When it comes to managed IT services, staying compliant with regulations is not just a box to tick, but a business imperative, especially if you operate within a highly-regulated industry like healthcare.

Non-compliance can result in hefty fines and a damaged reputation. The GDPR, for instance, can impose fines up to 4% of annual global turnover for non-compliance.

If you want to avoid fines, sanctions, and reputational damage, it’s vital to ensure that your IT policies are robust and up-to-date with the latest regulations. Regular audits and reviews can help to confirm you’re in line with all necessary standards and requirements.

Challenge 5: Skilled Talent Shortage

Finally, one of the most pressing managed services providers challenges is the shortage of skilled IT talent. A study from Manpower found that there is presently a 76% talent shortage in the IT and tech sector.

Finding and retaining the right talent is crucial for the long-term success of your IT strategy. To address this, focus on fostering a workplace culture that attracts and retains top talent. Invest in employee development programs and offer competitive benefits.

The 5 Biggest Managed Services Challenges and Solutions

Mitigate Managed Services Providers Challenges With an Award-Winning Partner

Tackling these IT managed services challenges is no small feat. However, with the right strategy and partner, you can transform these hurdles into stepping stones for your business’s growth. 

As a leading managed services provider in the Greater Toronto Area, Manawa Networks is fully equipped to help you navigate these challenges effectively.

With the help of our team of seasoned IT professionals, you’ll be able to craft an IT strategy that not only addresses these challenges, but also positions your business for sustainable, long-term growth.

For more information about how we can assist you, contact us today to schedule a free consultation.