Originally Published: 28 November 2023

This analysis is based on Nimble Global's proprietary research and 30+ years of practical experience across over 90 countries.

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Navigating the Waters of Change

Changing a Managed Service Provider (MSP) is a significant decision for any organization. It's usually triggered by a range of factors that go beyond mere dissatisfaction. If you're contemplating this step, it's crucial to understand the most common reasons that lead to this decisive action.

1. Entitlement Leading to Apathy

When an MSP becomes too comfortable with a long-standing client, they might slacken in their efforts, leading to service apathy. The sense of entitlement can be the starting point for a downward spiral in service quality.

2. Lack of Real Innovation

The dynamic nature of today's business environment demands continuous innovation. An MSP that fails to evolve and adapt to new technologies and methodologies can quickly become a liability.

3. MSP and Supplier/Vendor Non-Compliance

Compliance with industry standards and regulations is non-negotiable. Failure to meet these requirements exposes your organization to legal risks and could result in financial penalties.

4. Mergers and Acquisitions

Mergers and acquisitions can alter the operational landscape, often requiring a re-evaluation of existing partnerships. An MSP that was once a good fit may no longer align with your organization's evolved goals and objectives.

5. Falsified Supplier/Vendor Neutrality

An MSP claiming vendor neutrality but promoting a preferred partner behind the scenes is a significant red flag. This undermines trust and could lead to conflicts of interest that aren’t in your organization’s best interest.

6. Lack of Supplier/Vendor Engagement

When an MSP fails to actively engage with vendors, it can result in a fragmented approach that lacks coordination, ultimately affecting service delivery and quality.

7. Toxic Relationships

A business relationship must be based on mutual respect and open communication. When the relationship becomes toxic, it's time to reassess whether your MSP is still the right fit for your organization.

8. Cost and Price

Budget constraints and a review of ROI can prompt reconsideration of MSP contracts. While price should not be the sole criterion, it remains an important factor.

9. MSP Employee Team Negative Turnover (a.k.a. Churn)

High employee turnover within the MSP team leads to inconsistent service and the loss of institutional knowledge. This is disruptive and leads to performance issues over time.

10. Transition to a Hybrid or Insourced Model

Changing business strategies may necessitate a shift from a fully outsourced model to a hybrid or insourced approach. If your current MSP can't accommodate this shift, change becomes inevitable.

Final Thoughts.

Navigating the complexities of changing your MSP requires a strategic approach and thorough evaluation. By understanding the common reasons for change and assessing your current provider against these criteria, you can make informed decisions that enhance your operational efficiency and drive business success.

Contact us today for a comprehensive consultation to guide you through the transition process, ensuring that your new MSP partnership aligns with your strategic goals and delivers the desired outcomes.

Stay Nimble. Stay Compliant.

About the Author: With extensive experience in workforce compliance and global workforce solutions, David Ballew has consistently driven innovation and operational excellence. As the Founder and CEO of Nimble Global, David combines deep industry expertise with a unique perspective shaped by his neurodiverse AuDHD profile, enabling creative problem-solving and multidimensional insight. A pioneer in MSP models and workforce technologies, he is dedicated to bridging global compliance gaps and helping organisations build resilient, future-ready workforces.

Real People. Real Action. Real Innovation.

Disclaimer: This content is intended for informational purposes only and does not constitute legal, tax, or employment advice. Readers should consult qualified professionals in relevant jurisdictions before acting on the guidance provided. Nimble Global disclaims any liability for actions taken based on this publication.