Why, static three-year Managed Service Provider contracts are no longer appropriate - in the Era of Holistic Digital Transformation?
In today’s dynamic business landscape, where digital transformation transcends mere cloud migration, the role of Managed Service Providers (MSPs) is more critical than ever. As an executive or business owner overseeing strategic management, the necessity of an annual evaluation of your MSP cannot be overstated. Beyond the conventional aspects of technology support, businesses now require partners who are not only able to monitor stable systems such as Microsoft or Datto but also provide demonstratable expertise in aligning with your strategic vision.
The Evolving Face of Digital Transformation
Digital transformation has evolved beyond a mere technological shift. It now encompasses a holistic approach that intertwines technology with the business's goals. In this context, MSPs play a pivotal role, acting as catalysts for aligning technology solutions with the strategic vision of their clients. Unfortunately, most MSP providers are founded by engineers with little to no experience beyond IT.
Business-Driven Approach
Businesses today demand more than just technical proficiency from their MSPs—partners who exhibit a business-driven mindset and understand your organisation's unique challenges and goals are needed. An annual review becomes crucial in ensuring that your MSP is providing technological solutions and actively contributing to achieving business objectives. Technology
Astuteness in Strategic Alignment
Effective MSPs must go beyond the routine and showcase a deep understanding of the latest technological trends and their strategic implications for your firm. Annual reviews serve as a mechanism to evaluate the MSP's capability to stay abreast of technological advancements and their ability to align these with the client's strategic goals.
Structural Proficiency: A Missing Piece
While many MSPs excel in specific technical domains, a notable gap often exists in their structural proficiency. Organisations need partners who can provide a structured approach to their services, ensuring a seamless integration with the existing business processes. The annual review becomes an opportune moment to assess whether the MSP possesses the necessary organisational skills to provide the structure required for successful collaboration.
Skills Gap: A Silent Challenge
Despite the increasing complexity of digital transformation, many MSPs lack the comprehensive skill set necessary for the evolving landscape. An annual review allows organisations to identify these skill gaps and work collaboratively with their MSPs to address them proactively, and where the gap cannot be closed, you have the flexibility to move without onerous cancellation costs.
In conclusion, the call for an annual review of Managed Service Providers is not merely a procedural formality but a strategic imperative. It ensures that the MSP keeps pace with technological advancements and actively contributes to the client's business success. As an executive focused on strategic management, the commitment to regular evaluations reflects a dedication to maintaining a symbiotic relationship between technology and business objectives. Embracing this mindset will undoubtedly position your organisation at the forefront of the ever-evolving digital landscape, ready to navigate the challenges and opportunities that lie ahead.
Here is some interesting reading; check out CRN Australia article which provides insights on the role of MSPs in digital transformation.