For a company with 10 to 100 employees, the managed IT provider (MSP) is usually the most important technology vendor you have. They hold the admin passwords, they decide how your laptops are protected, and they are the first call when something breaks.
Most owners pick one from a referral and a single proposal. This guide covers what to compare, the questions worth asking every provider and the contract terms that cause the most trouble later.
Start with what you actually need
Before you talk to providers, write down the scope. It keeps every proposal comparable and stops the conversation from drifting toward whatever a provider prefers to sell.
- Number of users, devices and locations
- The business applications you depend on, and who supports them today
- Compliance needs such as HIPAA, PCI or CMMC
- Whether you need help after hours or on weekends
- Whether you have an internal IT person the provider will work alongside
How MSP pricing works
Most providers price per user per month. Some price per device, and a few charge a flat monthly fee. The number on the proposal only means something once you know what it includes.
Ask every provider to price the same scope, then line up what is inside the monthly fee and what is billed separately.
- Onboarding fees and the cost of setting up new hires
- Security tools: endpoint protection, email filtering, backup and monitoring
- Microsoft 365 licenses, included or billed on top
- Onsite visits, included or hourly
- Projects such as office moves, server replacements and migrations
Questions to ask every provider
- Who answers when we call, and what response time will you commit to in writing?
- What does onboarding look like, how long does it take and what does it cost?
- Which security tools are in your standard stack, and can we see their reports?
- Who owns our admin accounts and documentation, and how do we get them if we leave?
- Can we speak with two clients our size, ideally in our industry?
- How often will we review tickets, risks and the technology roadmap together?
Contract terms to read twice
The agreement matters as much as the proposal. These are the clauses that most often surprise companies when they want to make a change.
Term and auto renewal
Many MSP agreements renew automatically unless you give written notice 60 to 90 days before the end of the term. Know the date.
Termination
Check whether you can leave for poor service, what notice is required and whether any fees apply if you leave early.
Offboarding
The agreement should commit the provider to hand over credentials, documentation and configurations if you move on.
Price changes
Look for annual increase language and minimum user counts that keep you paying for seats you no longer need.
Red flags
- A proposal with a price but no written scope
- No response time commitment in the agreement
- Pressure to sign a 36 month term before any work has been done
- Vague answers about who controls your admin accounts
- Security tools you pay for but never see a report from
How Level2 helps
We run managed IT evaluations from start to finish. We write a common scope with you, invite two to four providers that fit your size and needs, put the proposals side by side and negotiate the agreement before you sign. If your current provider is the right fit, we will tell you that and help you renegotiate instead. See vendor evaluations or book a free review.
Questions we hear about this
It depends on scope. Most providers charge per user per month, and the spread between providers for the same scope can be wide. A per user number on its own tells you very little until you know which security tools, licenses and onsite time are included.
If the service is good and the problem is price or scope, renegotiating is usually faster and less disruptive. If response times, security or communication are the problem, an evaluation of alternatives is worth the effort.
Co-managed IT means an internal IT person and an outside provider share the work. The provider usually covers monitoring, security and after hours support while the internal person handles day to day requests.
Plan for one to three months. Most of that time is driven by the notice period in your current agreement and the new provider onboarding your devices and accounts.