IT Managed Service Provider Challenges Driving SMBs Away

Small and medium-sized businesses (SMBs) often rely heavily on managed IT services to maintain smooth operations and stay competitive. 

However, despite the crucial role these providers play, many SMBs frequently change their managed IT service providers. Research proves that 51% of US consumers switched providers in the past year due to poor customer service. 

As Matthew Held, CEO at Manawa Networks, says, "Partnering with a dependable managed IT service provider is key to navigating IT challenges, safeguarding business continuity, and fostering sustainable growth."

This blog will explore the top reasons behind this trend and highlight the significant pain points that drive businesses to seek new partnerships.

Leading Managed Services Challenges Making SMBs Leave

1. Inconsistent Service Quality

One of the most common challenges SMBs face with their managed IT service providers is inconsistent service quality. Businesses depend on their IT infrastructure for day-to-day operations, and any disruption can have severe consequences. 

Inconsistent or poor service can erode trust and hinder productivity. Managed service providers (MSPs) must consistently deliver high-quality services to retain their clients.

Common Issues Leading to Inconsistent Service Quality:

• Frequent Downtimes: Unexpected downtimes can halt business operations, leading to financial losses and reduced productivity. Research proves that IT downtime costs, on average, $9,000 per minute. 
• Slow Response Times: Delays in addressing technical issues can escalate problems and prolong disruptions.
• Lack of Proactive Support: Failing to anticipate and prevent potential issues can result in recurring problems that frustrate clients.

2. Poor Communication

Effective communication is essential in any business relationship, and the relationship between SMBs and their managed IT service providers is no exception. Poor communication can lead to misunderstandings, unmet expectations, and frustration.

Examples of Poor Communication:

• Unclear Managed Service Agreement Terms: Misunderstandings about the terms of the managed service agreement can lead to dissatisfaction.
• Lack of Regular Updates: Clients need regular updates on the status of their IT infrastructure and any ongoing issues or projects.
• Unresponsiveness: When MSPs are slow to respond to inquiries or fail to keep clients informed, it damages the relationship.

3. Lack of Customized Solutions

Every business is unique, and their IT needs can vary significantly. Many SMBs leave their managed IT service providers because they feel their needs are not being adequately addressed.

Indicators of Lack of Customization:

• Generic Service Offerings: Providing one-size-fits-all solutions without considering the specific needs of the business.
• Inflexible Service Packages: Not offering customizable service packages that align with the client's unique requirements.
• Ignoring Client Feedback: Failing to listen to and act on client feedback to tailor services accordingly.

4. Security Concerns

Security is a top priority for SMBs, especially with the increasing prevalence of cyber threats. In fact, research from CloudSecureTech shows that 60% of small businesses close down within six months after a cyber attack. If a managed IT service provider fails to implement robust security measures, businesses will likely look for alternatives.

Common Security Issues:

• Inadequate Data Protection: Poor data protection practices can lead to data breaches and loss of sensitive information.
• Lack of Security Service: Not offering comprehensive security services that address all aspects of cybersecurity.
• Insufficient Response to Incidents: Slow or ineffective responses to security incidents can leave businesses vulnerable.

5. Lack of Transparency

Transparency in the relationship between an SMB and its managed IT service provider is crucial for building trust. Lack of transparency can cause clients to question the integrity and reliability of their provider.

Areas Where Transparency is Essential:

• Service Level Agreements (SLAs): Clear and transparent SLAs help set realistic expectations for service quality and response times.
• Billing and Payment Terms: Transparent billing practices and clear payment terms prevent disputes and confusion.
• Service Reporting: Regular and detailed reports on the services provided and their impact on the business.

6. Inflexible Terms and Conditions

Rigid terms and conditions in managed services contracts can drive SMBs away. Businesses need flexibility to adapt to changing circumstances and requirements.

Issues with Inflexible Terms:

Long-Term Contracts: Long-term contracts without the option for adjustment or termination can burden SMBs.

Lack of Scalability: The inability to scale services up or down as needed can hinder business growth and adaptability.

Complex Termination Clauses: Difficult and costly termination clauses can make it hard for businesses to switch providers when needed.

7. Inadequate Support for Remote Working

With the rise of remote working, SMBs need managed IT service providers that can support this new mode of operation effectively. Providers that fail to offer adequate support for remote working can lose clients.

Key Support Areas for Remote Working:

• Remote Access Solutions: Secure and reliable remote access to business systems and data.
• Support for Remote Employees: Quick and effective support for employees working from home.
• Cloud Services: Offering robust cloud services facilitating remote work and collaboration.

8. Lack of Business Continuity Planning

Business continuity planning is essential to ensure businesses can continue operating during and after a crisis. Managed IT service providers must offer comprehensive business continuity services to retain clients.

Important Aspects of Business Continuity:

• Disaster Recovery Plans: Detailed plans for recovering data and systems after a disaster.
• Regular Testing: Regular testing of disaster recovery plans to ensure their effectiveness.
• Continuous Monitoring: Monitoring systems to detect and mitigate potential threats.

Checklist for Evaluating Managed IT Service Providers

Say Goodbye to Managed Service Challenges With Manawa Network’s Expertise

Navigating the challenges of managed IT services can be daunting for SMBs. The decision to switch service providers is often driven by the need for more reliable and tailored IT support. 

Manawa Networks stands out by tackling these challenges head-on. With an average response time of less than 15 minutes, we ensure rapid and personable service. 

With 16 years of experience, we have developed a proven process designed to reduce IT issues by 50% on average. Our structured onboarding process and 90-day early termination option offer flexibility and peace of mind, ensuring you are not locked into long-term contracts.

To experience the Manawa difference, contact us today to schedule a free consultation. Let us help you overcome the challenges of IT managed service providers and support your business's IT needs.