Managed Services Challenges in 2023
The 10 Most Significant IT Managed Services Challenges in 2023

10 IT Managed Services Provider Challenges in 2023

In today’s rapidly evolving digital landscape, many businesses rely on Managed Services Providers (MSPs) to handle their IT operations, ensuring seamless performance, robust security, and increased efficiency. It’s a fast growing trend (of hiring an even faster-growing industry) that has proven to be a mightily effective choice for businesses around the globe.

However, not all MSPs are created equal, and working with a subpar provider can lead to a myriad of challenges, ultimately hindering your business’s growth and success.

In this blog, we’ll explore the top 10 IT managed services provider challenges in 2023 and provide insights on how to overcome them, ensuring your partnership with an MSP is a beneficial and rewarding experience.

Managed Services Provider Challenges
Caption: Businesses are turning to IT companies to manage their tech; Grand View Research

What Are Managed IT Services, and Why Are So Many Businesses Using Them?

Managed IT services (in case you’re wondering) refer to the practice of outsourcing IT management responsibilities to third-party companies, known as Managed Services Providers (MSPs).

MSPs provide businesses with various services, including:

  • Network management
  • Cybersecurity
  • Data storage
  • IT support
  • Consulting services
  • Hardware procurement
  • And more

By outsourcing IT functions to an MSP, businesses are granted the boon of being able to focus on their core operations, while benefiting from cost savings, enhanced security, and improved efficiency. However, working with an MSP that fails to live up to your IT requirements can bring its own set of challenges.

The Top 10 IT Managed Services Challenges and How to Overcome Them

To help avoid engaging with an IT partner that doesn’t quite meet your myriad (and unique) business technology needs, here are the top 10 IT managed services providers challenges any modern business are likely to face in 2023:

1. Inadequate Infrastructure Support

One of the more significant challenges businesses face when working with subpar MSPs is inadequate infrastructure support. You might find these MSPs lack the necessary tools, resources, or personnel to effectively manage and maintain your IT infrastructure.

To overcome this challenge, businesses should thoroughly research and evaluate prospective MSPs before entering into a partnership. Ensure that the MSP has a proven track record of providing robust infrastructure support, and request references from current clients to gauge their satisfaction levels.

These are all things that should be vetted during the interview and consultation process, for your own edification.


Avoid All of these Challenges Right Now by Giving a Call

We’re VERY experienced in helping businesses grow.

Learn More


2. Insufficient Cybersecurity Measures

Cybersecurity has become a top priority for businesses in recent years, and a less-than-optimal MSP may not offer the necessary protections to keep your data and systems secure.

To mitigate this risk, businesses should choose an MSP with a strong focus on cybersecurity. Look for providers that offer comprehensive security solutions, including 24/7 monitoring, regular vulnerability assessments, and employee training programs.

These providers ought to be adept at tackling even the most rigorous network setup, regardless of the amount of log data generated by your system.

3. Poor Communication and Response Times

Effective communication is critical when working with an MSP. A provider that fails to meet your needs may not prioritize communication, leading to misunderstandings, delayed response times, and decreased efficiency.

Overcome this challenge by establishing clear communication channels and expectations with your MSP from the outset. Make sure they are responsive and provide regular updates on their progress. Additionally, consider working with an MSP that offers a dedicated account manager for a more personalized experience.

Many MSPs offer consultation services as part of their managed IT service engagement. This usually arrives in the form of dedicated Tier-3 account contacts, and/or virtual Chief Information Officers (vCIOs).

4. Limited Scalability and Flexibility

As your business grows, your IT needs may evolve, requiring additional support and resources. An ineffective MSP may struggle to accommodate your changing needs, limiting your growth potential.

To avoid this issue, choose an MSP with a proven ability to scale and adapt to your business’s unique requirements. Assess their capacity to manage increased workloads and inquire about their plans for future growth and expansion.

As with any worthwhile business engagement, communication is of the utmost importance. Not only will a good MSP perform the service you hired them for, but they will also be strong communicators, delivering you timely reports, updates, and generally being available to you morning, noon and night.

5. Inconsistent Service Quality

Some MSPs may deliver inconsistent service quality, leading to downtime, lost productivity, and potential security breaches.

To ensure consistent service quality, work with an MSP that has a strong reputation for reliability and a track record of meeting or exceeding service level agreements (SLAs). Request references from current clients and read reviews to get a sense of their performance.

6. Inadequate Disaster Recovery and Backup Solutions

Data loss and system downtime can have severe consequences for businesses. A struggling MSP may not have the necessary disaster recovery and backup solutions in place to minimize these risks.

To mitigate this challenge, ensure that your MSP offers comprehensive disaster recovery and backup solutions, including offsite data storage, regular data backups, and a well-documented recovery plan.

Learn more about how MSPs (IT partners) can catapult your business to new heights of success:


7. Insufficient Staff Training and Expertise

A lackluster MSP may lack the necessary staff training and expertise to effectively manage your IT environment.

To overcome this challenge, thoroughly vet the qualifications and experience of the MSP’s staff. Verify their certifications, industry knowledge, and expertise in managing IT environments similar to yours.

8. Lack of Proactive Approach

An inadequate MSP may only react to issues as they arise rather than proactively identifying and addressing potential problems.

To ensure a proactive approach, choose an MSP that offers proactive monitoring and maintenance services, regularly updating software, and implementing security patches. This will help prevent issues before they become critical, saving time and reducing the risk of costly downtime.

9. Limited Range of Services

A suboptimal MSP may only offer a limited range of services, requiring you to work with multiple providers to meet your IT needs.

To avoid this challenge, opt for an MSP with a comprehensive portfolio of services, including network management, cybersecurity, cloud services, and software support. This will streamline your IT operations, reduce management complexity, and ensure a more cohesive IT strategy.

10. Hidden Costs and Unclear Pricing

Unappealing MSPs may have hidden costs or unclear pricing structures, making it challenging to budget accurately for IT services.

To overcome this issue, work with an MSP that offers transparent pricing and clearly outlines all costs associated with their services. Ask for a detailed quote and ensure that any potential additional fees are discussed upfront to avoid surprises down the line.

IT Managed Services Provider Challenges

Ensuring You Avoid These Major IT Managed Services Provider Challenges with as Your IT Partner

By partnering with a reliable, experienced MSP like, you can avoid these common challenges and ensure that your IT operations run smoothly and securely. With a comprehensive range of services, highly trained staff, and a proactive approach to IT management, can provide the support your business needs to thrive in today’s competitive environment.

Take the time to thoroughly research and vet potential MSPs, using the guidelines outlined above. By doing so, you can establish a successful partnership that enables your business to focus on its core functions, while benefiting from enhanced security, cost savings, and improved efficiency.

So, contact us today to learn more about how we deliver consistent ROI and reliably meet all of our client’s IT needs.

How is your state of IT? Call Us: (855) 551-7760 with any questions.