Common Challenges in Managed IT
Partnering with a Managed IT Services provider can bring immense benefits - streamlined tech operations, cost efficiencies, access to specialised expertise, and proactive support that prevents issues from escalating into full-blown crises. However, like any collaborative business relationship, Managed IT comes with its own set of challenges. If you’re considering outsourcing or expanding an existing partnership, it’s crucial to understand what these challenges are and how both you and your provider can navigate them successfully.
In this article, we’ll discuss the common challenges in Managed IT, offering practical solutions and referencing some of our earlier topics - such as Managed IT vs. In-House IT and How to Choose a Managed IT Provider - for further reading. Whether you’re a small company on the Central Coast (NSW) or a larger enterprise spanning multiple locations, recognising these pitfalls can help you work more effectively with your managed services partner and ensure a stable, secure, and high-performing IT environment.
Misaligned Expectations and Scope
The Challenge:
One of the most common hurdles is unclear roles and responsibilities. You might assume your Managed IT provider will handle every software update, troubleshoot every hardware issue, or instantly deploy new services - while they believe their contract only covers specific systems or support hours.
Potential Consequences:
Frequent scope disputes or confusion over who owns a task.
Frustrations that strain the relationship if each party feels the other is not fulfilling their end of the deal.
Additional unplanned costs if the provider charges for services you assumed were included.
How to Overcome It:
Detailed Contracts and SLAs: Ensure your contract and Service Level Agreement (SLA) explicitly list which services are covered, which tasks remain in-house, and what falls outside the monthly fee.
Regular Check-Ins: Schedule periodic meetings - monthly or quarterly - to review the scope of services, discuss upcoming projects, and address any grey areas promptly.
Document Everything: Keep a clear record of any new requests or changes to scope in a help desk ticket system or shared document, so there’s a written track of responsibilities.
Communication Gaps
The Challenge:
Even the best technical plans can fall apart if communication is inconsistent or unclear. Issues can include confusion around support channels (email vs. phone vs. ticketing), slow response times, or a lack of regular updates on ongoing projects.
Potential Consequences:
Delayed issue resolution if employees don’t know the correct way to seek help.
Low transparency about system status or pending action items, leading to missed deadlines.
Reduced trust in the Managed IT partner if clients feel left “in the dark.”
How to Overcome It:
Establish Clear Contact Points: Decide on primary communication methods - e.g., a help desk portal for routine issues, an emergency phone line for critical outages, Slack or Teams for quick messages.
Set Response Time Expectations: Ensure the SLA outlines how fast you should expect an initial reply and what’s considered an acceptable resolution time for various priority levels.
Regular Progress Reports: Request monthly or quarterly reporting on system health, ticket resolution stats, and upcoming changes. This not only keeps you informed but also holds the Managed IT provider accountable.
The Challenge:
Even the best technical plans can fall apart if communication is inconsistent or unclear. Issues can include confusion around support channels (email vs. phone vs. ticketing), slow response times, or a lack of regular updates on ongoing projects.
Potential Consequences:
Delayed issue resolution if employees don’t know the correct way to seek help.
Low transparency about system status or pending action items, leading to missed deadlines.
Reduced trust in the Managed IT partner if clients feel left “in the dark.”
How to Overcome It:
Establish Clear Contact Points: Decide on primary communication methods - e.g., a help desk portal for routine issues, an emergency phone line for critical outages, Slack or Teams for quick messages.
Set Response Time Expectations: Ensure the SLA outlines how fast you should expect an initial reply and what’s considered an acceptable resolution time for various priority levels.
Regular Progress Reports: Request monthly or quarterly reporting on system health, ticket resolution stats, and upcoming changes. This not only keeps you informed but also holds the Managed IT provider accountable.
Resistance to Change (Cultural or Internal)
The Challenge:
Introducing an external partner for IT can be a cultural shock for staff who are used to in-house solutions or a specific way of doing things. Some employees may be hesitant to adopt new workflows - like logging help desk tickets instead of calling the old in-house “IT guy,” or following stricter security protocols.
Potential Consequences:
Slowed adoption of new technologies or processes.
Frustrations from both employees and the MSP if instructions aren’t followed.
Heightened security risks if staff ignore new policies or don’t properly learn new tools.
How to Overcome It:
Internal Communication and Education: Clearly explain why you’re partnering with a Managed IT provider and how it benefits everyone (faster support, stronger security, reduced downtime).
Training Sessions: Hold short workshops or Q&A sessions to demonstrate new ticketing systems or security steps. Encourage employees to ask questions and address concerns head-on.
Empower Champions: Identify a few enthusiastic staff members willing to lead by example. Their positive experience can help shift broader team attitudes.
Security Risks and Data Privacy
The Challenge:
Cybersecurity is a growing concern for businesses of all sizes. When you outsource IT, you’re entrusting sensitive information and system access to a third party. If the MSP doesn’t prioritise robust security measures, or if there’s a misunderstanding about who handles certain security tasks, vulnerabilities can arise.
Potential Consequences:
Heightened exposure to ransomware, phishing attacks, or data breaches.
Legal and financial implications if regulations (like GDPR, HIPAA, or the Australian Privacy Principles) are not followed.
Loss of customer trust if sensitive data is compromised.
How to Overcome IT:
Comprehensive Security Agreements: Make sure your contract or SLA specifies minimum security measures - such as antivirus, firewalls, intrusion detection, and encryption for data in transit and at rest.
Regular Risk Assessments: Schedule ongoing security reviews, penetration tests, or vulnerability scans, especially if you handle sensitive data.
Shared Responsibility Model: While the MSP monitors and patches systems, you should ensure employees follow best practices (complex passwords, two-factor authentication, reporting suspicious emails).
Incident Response Plan: Confirm the MSP has a solid plan for how they’ll handle breaches or attacks, including notification timelines and escalation paths.
For more on how Managed IT can bolster security, check out our posts on cybersecurity management within Managed IT or The Role of AI in Managed IT for advanced threat detection.
Underestimating Costs or ROI
The Challenge:
Although Managed IT often proves cost-effective compared to full in-house IT, some businesses underestimate total expenses. Likewise, they might not track the benefits - like reduced downtime or fewer security incidents - so they can’t fully gauge their return on investment (ROI).
Potential Consequences:
Budget overruns if extra services or hardware replacements weren’t accounted for.
Difficulty justifying Managed IT to stakeholders if you can’t quantify productivity gains or cost savings.
How to Overcome It:
Detailed Budgeting: Review the Cost of Managed IT Services to understand various pricing models (per-user, per-device, tiered plans) and factor in additional fees for hardware or special projects.
Measure and Compare: Record metrics like downtime hours, help desk tickets, or data breach incidents before and after implementing Managed IT. Evaluate them quarterly.
Use an ROI Framework: Tools like our Managed IT ROI Calculator can help you estimate potential savings based on your current pain points and how the MSP addresses them.
Slow Adoption of New Technologies
The Challenge:
Many Managed IT providers offer guidance on adopting emerging tech - like cloud services, AI-driven monitoring, or advanced analytics. But some businesses resist change or lack a clear roadmap for integrating these technologies into their existing infrastructure.
Potential Consequences:
Lost competitive advantage if you lag behind industry peers in modernising workflows.
Missed cost savings or efficiency gains from not migrating to the cloud or leveraging automation.
Frustration if your MSP repeatedly recommends upgrades that you don’t implement, leading them to wonder if they’re meeting your expectations.
How to Overcome It:
Collaborative Roadmap: Work with your MSP to create a 6 - 12-month IT roadmap that prioritises key initiatives - like a cloud migration or data analytics pilot.
Pilot Programs: Start small with a departmental rollout or limited-time pilot to gather real-world feedback before a company-wide deployment.
Education Sessions: Ask your MSP to host workshops explaining the benefits and ROI of new technologies, addressing fears or misconceptions among staff or decision-makers.
Inflexible or Incomplete SLAs
The Challenge:
Not all SLAs are created equal. Some are so rigid they don’t allow for changing business needs, while others might be vague - lacking measurable response times or ignoring certain critical systems.
Potential Consequences:
Frustration if new IT requirements arise (e.g. remote work expansion) and the MSP claims they aren’t covered by the existing agreement.
Potential service gaps if the SLA doesn’t explicitly include key systems, leaving them unmonitored or unsupported.
Unclear escalation paths when critical incidents occur, slowing the resolution process.
How to Overcome It:
Review and Update Regularly: Revisit your SLA yearly or whenever major business changes happen (like mergers, expansions, or new compliance rules).
Include Change Management Clauses: Build flexibility into the SLA, allowing for add-on services or cost adjustments as your environment evolves.
Ensure Measurable Targets: Spell out maximum response and resolution times, how escalations occur, and any penalties for failing these standards. (Learn more in Understanding SLAs in Managed IT.)
Lack of Integration with Internal Teams
The Challenge:
A common misconception is that once you outsource IT, your internal staff has zero involvement with day-to-day tech. In reality, many businesses still have some in-house roles - ranging from a single “IT champion” to an entire department that focuses on strategic tasks.
Potential Consequences:
Overlapping efforts or duplicated work if internal staff and the MSP don’t coordinate.
Slow decision-making if they don’t share data, logs, or project updates promptly.
Miscommunication leading to incomplete fixes or lingering system vulnerabilities.
How to Overcome It:
Embrace Co-Managed IT: If you keep an internal IT person or team, define a co-managed structure. Who handles user-level tasks? Who’s responsible for advanced networking or security policies?
Cross-Functional Meetings: Organise periodic catch-ups between your internal IT leads and the MSP engineers or vCIO to align on initiatives, exchange knowledge, and avoid duplication.
Unified Tools and Processes: Use the same ticketing system, documentation tools, or communication platforms so everyone has real-time visibility into IT tasks.
Vendor Lock-In and Exit Strategies
The Challenge:
Sometimes an MSP might rely on proprietary systems or complicated contract clauses, making it tough to switch providers if your needs change. If you feel stuck or the service quality declines, you could face painful transitions.
Potential Consequences:
High switching costs - both financially and in lost productivity.
Being stuck with outdated solutions if the MSP isn’t proactive about upgrades or improvements.
Tension in the relationship if you’re unhappy but fear contract penalties or data retrieval hurdles.
How to Overcome It:
Seek Transparent Contracts: Look for mention of how data and documentation will be returned to you if the partnership ends.
Avoid Proprietary Lock-Ins: Ask if they use industry-standard tools, making it easier to migrate or integrate with other platforms.
Plan for Transitions: Even if you have no immediate plans to leave, confirm the offboarding process. A well-managed exit strategy fosters peace of mind and accountability on both sides.
Failure to Evolve with Business Needs
The Challenge:
Your business isn’t static; you might open new branches, pivot services, or adopt remote work. If your MSP fails to adapt its service scope or technologies to support these changes, you’re left with an IT setup that drags you down rather than propels you forward.
Potential Consequences:
Missed opportunities for scaling up, launching new products, or entering new markets if the IT infrastructure can’t handle growth.
Ongoing frustration from employees trying to use outdated systems to achieve modern goals.
Eroded partnership trust, especially if you feel the MSP isn’t proactive in suggesting upgrades or new approaches.
How to Overcome It:
Align IT Roadmaps: Discuss short- and long-term plans with your MSP, so they factor in your business goals (like expansions, mergers, or adopting emerging tech).
Quarterly or Biannual Reviews: Evaluate whether your current contract and service levels are still suitable. If big changes are on the horizon, consider an SLA update or a new managed service tier.
Collaborate on Innovations: Good MSPs often have insights on cutting-edge tools or cloud solutions that align with your industry. Encourage them to share these ideas regularly.
Final Thoughts
Managed IT can be a game-changer for businesses aiming to maximise uptime, protect against cyber threats, and embrace new technologies efficiently. However, these advantages don’t come automatically. From misaligned expectations and communication gaps to security concerns and vendor lock-in, a variety of pitfalls can derail the best-laid plans.
The good news is that each challenge has a solution rooted in open communication, clear documentation, and regular performance reviews. By tackling potential issues head-on - whether it’s specifying roles in the contract, encouraging cultural buy-in from staff, or actively measuring ROI - both you and your Managed IT provider can form a robust, mutually beneficial partnership.
If you’re experiencing any of these common challenges or just starting your outsourcing journey, don’t hesitate to revisit our other resources, like How to Choose a Managed IT Provider or Managed IT Implementation Process. And if you’re located on the Central Coast, Zelrose IT is here to provide local expertise and a hands-on approach. Let’s work together to build an IT framework that not only avoids these pitfalls but also drives your business forward.
Ready to tackle your Managed IT challenges?
Reach out to Zelrose IT for a consultative chat on how we can help streamline your technology, address any stumbling blocks, and keep your operations running at peak efficiency.