Evaluating MSP Partners
Piercing the Veil of Market Perception
Investing in a Managed Service Provider (MSP) is a significant commitment of time, capital, and operational resources. As such, it's imperative that organisations delve beyond superficial indicators such as brand reputation and customer testimonials to truly understand the MSP they are considering as a partner. It's often said, "you don't know what you don't know," and nowhere is this truer than in the complex landscape of MSP partnerships.
The Mirage of Market Perception
While accolades, trade shows, and a glitzy portfolio of brand logos can be persuasive, these elements sometimes merely serve as a façade. In reality, internal dynamics, politics, and resource allocation can often differ greatly from the polished image portrayed in sales presentations and marketing collateral.
Pecking Order and Priorities
It's not uncommon for organisations to believe they will be top priority when engaging with an MSP. However, this belief can quickly evaporate when you find your project side-lined in favour of larger, more lucrative clients. Understanding where your organisation fits in the MSP's 'pecking order' is essential to setting realistic expectations.
Key Considerations for Comprehensive Evaluation
Thorough evaluation of a potential MSP should involve a multi-faceted review that goes far beyond the initial sales pitch. Here is a non-exhaustive list of key considerations to evaluate:
Operational Expertise
Analytics: Does the MSP have the tools and expertise to provide actionable insights?
Audit Management: How are compliance and quality audits conducted?
Client and Executive Turnover: What is the stability in client and executive relations?
Conflict of Interest: Any existing client-vendor relations that could affect your contract?
Financial Stability and Cost Management
Escrow Financial Protection: Are there mechanisms to protect your financial investment?
Financial Controls: What internal controls are in place for financial management?
Vendor Cost/Price Negotiation: Can the MSP effectively negotiate vendor terms?
Innovation and Technology
Programme Innovation Roadmap: Is there a documented vision for technological advancement?
Innovative Technology Partners: Does the MSP collaborate with cutting-edge technology providers?
Compliance and Governance
Legislative Compliance: How well does the MSP adhere to laws and regulations?
Tax Compliance: Is there a clear understanding of local and international tax liabilities?
Service Delivery and Relationship Management
Service Delivery Capacity Plan: Is there a well-defined plan for scaling operations?
Stakeholder Engagement: How effective is the MSP in managing and engaging with stakeholders?
Team Development: Is there a strong focus on internal talent development?
Vendor Management
Vendor Financial Sustainability: How financially stable are the MSP's primary vendors?
Vendor Neutrality - Conflict-Free: Does the MSP provide unbiased vendor recommendations?
Vendor Optimisation: Is there a strategy for maximising vendor performance and value?
Conclusion
Choosing an MSP is a complex decision that shouldn't be solely based on market reputation or sales pitches. By carefully evaluating an array of factors, from operational and financial stability to innovation and compliance, you can make an informed decision that aligns with your organisation's specific needs and aspirations. This diligent approach not only minimises risk but also sets the stage for a more synergistic and effective partnership.
