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Managed IT Services Challenges

7 Managed IT Services Challenges – And How to Overcome Them

Outsourcing IT support is a true time and resource lifesaver for businesses. However, managed IT services challenges do exist and if not managed properly, these challenges can interfere with a business getting the most value out of working with MSPs.

As IT systems continue to expand and complexify, there’s no question that dealing with these challenges is essential for businesses. Technology – and the ability to manage IT efficiently – is no longer a luxury for businesses, it’s a necessity.

Those who can’t manage IT effectively face the risk of losing $5600 per minute of downtime.

In the words of Karen Novotny, CCO’s CEO, “In the rapidly changing digital landscape, adaptation is not merely an option for business owners, it’s become a survival strategy.”

This means facing challenges that creep up with managed IT services should be addressed head-on and resolved quickly. This blog will explore the 7 most common challenges businesses face with outsourced IT providers and explore ways to overcome them.


IT Managed Services: 7 Provider Challenges


Managed Services Challenge 1: Scalability Issues

It’s a Growing World

Scalability is the ability of your IT system to accommodate growth. But it’s not just about getting bigger – it’s about getting bigger efficiently. A system that can’t scale is like a car that can’t speed up when you hit the highway: it’s not going to get you where you need to go.

The main reason for scalability becoming a notable challenge in the managed services market is the lack of a growth plan.


Solutions to Scale Up

To overcome this issue, you should work with a provider that can assess your IT framework and identify scaling opportunities.  For instance, they should provide opportunities for integration of cloud-based services, which are built to scale.

Planning for growth with a consultant as early as possible can save you significant time and effort in the future.


Managed Services Challenge 2: Data Security Concerns

Cyber Threats: The Invisible Enemy

In today’s digital era, data security is paramount. However, safeguarding against cyber threats is one of the major IT managed services provider challenges because of the risk to a business’s integrity, revenue, and operations. According to a report from Cybersecurity Ventures, the global cost of cybercrime is expected to reach $10.5 trillion annually by 2025.


Build a Secure Fort

The solution? Work with a provider who values a proactive approach to security issues. They should actively monitor and update your security software and conduct cybersecurity awareness training for your team. Additionally, consider a provider who can properly assess and evaluate your security solutions – that can analyze your systems, identify vulnerabilities, and suggest improvements.



Managed Services Challenge 3: Lack of Expertise

A Question of Skill

Not having the right people on your team can pose significant managed services provider challenges. As technology evolves, so do the skills needed to manage it. Different industries have varying IT needs that require specialized IT services.

Working with a provider that doesn’t understand your industry’s unique needs, or lacks the expertise needed to manage it properly, can result in fewer efficiencies and greater headaches.


Overcoming the Skill Gap

To tackle this challenge, work with a provider that prioritizes continual learning and development in their organization. They should be able to demonstrate their upskilling efforts and stay up to date with new innovations unique to your industry and organization.


Managed Services Challenge 4: High Costs

Pricey Technology

Maintaining and upgrading IT infrastructure can be expensive, which makes cost one of the leading managed services challenges. Not only is the initial investment high, but ongoing expenses can also mount up quickly.


Cost-Effective Strategies

Opting for cost-effective solutions, such as cloud-based solutions, can drastically cut costs. It’s also essential to perform regular audits of your IT systems to identify redundancies and inefficient processes.

Managed IT services can also be a cost-effective solution, as they provide access to the latest technologies without the need for significant upfront investments.


Managed Services Challenge 5: Compliance Regulations

The Legal Maze

Staying compliant with regulatory standards, especially in sectors like finance and healthcare, is one of the key IT managed services provider challenges. Non-compliance can lead to hefty fines and damage to your business reputation.


Navigating the Compliance Maze

One effective way to manage this challenge is by keeping abreast of the latest laws and regulations that apply to your industry. Implement a robust compliance management system and consider hiring a compliance officer or consulting with a legal expert to ensure you’re on the right track.


Managed Services Challenge 6: Vendor Management

Juggling Partners

Managing multiple vendors can be like trying to keep several balls in the air at the same time – a single misstep, and everything comes crashing down. Poor vendor management can result in poor service, missed deadlines, and wasted resources.


Select a Single Source

Work with a vendor that provides end-to-end solutions for managing your technology stack. Having one support provider streamlines support ticket management, lowers costs and communication errors, as well as one bill to manage each month.


Managed Services Challenge 7: Integration Problems

The Connection Conundrum

Connecting different software and systems can be tricky, leading to integration issues – one of the prominent managed services providers challenges.


Making Connections

Opt for software and services that offer API support, making integration easier. Consulting with an IT solutions provider who specializes in integration can also be a wise investment.

7 Managed Services Challenges Solutions from CCO
Scalability Issues Cloud-based services & growth planning
Data Security Concerns Proactive cybersecurity & staff training
Lack of Expertise Continuous learning & knowledgeable technology experts & training programs
High Costs Cost-effective solutions & audits
Compliance Regulations Compliance management system & industry specific knowledge
Vendor Management Single-source end-to-end solutions
Integration Problems API support & specialized consultation



Overcome Managed Services Providers Challenges with CCO!

With the right partner at your side, overcoming managed services providers challenges becomes achievable. At CCO, we bring scalable solutions, robust security, industry expertise, and more – giving your business the edge it needs.

For MSP services that seamlessly integrate with your business needs, processes and long-term goal, speak with our team today.