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Why companies hesitate to switch MSPs
For some companies, even when their current managed service provider (MSP) is falling short, the idea of changing providers comes with a long list of worries, from concerns about operational disruption to doubts about data security during the transition.
Business leaders worry that making the switch could mean payroll delays or compliance slips ups. These are valid concerns, but they’re often based on worst-case scenarios rather than what a well-planned MSP transition can actually look like.
There’s also the cost of inaction to consider. Staying with an underperforming MSP can quietly drain productivity, introduce hidden expenses and even expose a business to legal and compliance risks. Over time, these risks tend to outweigh the temporary discomfort of change.
If you’re thinking about whether it’s time to change your managed service provider, the real question should be: Can you afford not to?
Preparing for the transition: What businesses should know first
Switching from an MSP that hasn’t met your expectations can feel like a daunting task, but it’s also an opportunity to reset and find a better fit for your business. Before making the move, it’s important to understand the key steps involved and what to prepare for. From reviewing your current contract to managing the handover of systems and data, knowing what to expect upfront can help you avoid disruptions and make a smoother transition to a provider that better supports your needs.
Building a strategic MSP transition plan
Switching MSPs can impact every part of your business, from systems and processes to data and daily operations, so treating the shift as a strategic project helps avoid unnecessary stress.
Step-by-step roadmap for switching providers
You can start by outlining each phase of the transition. This typically includes:
- Reviewing your current MSP contract and identifying exit terms.
- Evaluating the scope of services and goals for your new MSP.
- Setting up a clear transition timeline with milestones.
- Coordinating data handover and systems access.
- Testing new service setups before full deployment.
Key stakeholders and roles in the transition process
Make sure you involve the right people from the beginning. This usually includes HR teams, department heads, finance teams, and legal advisors. Each stakeholder should have a designated role in the transition process. Who will manage the communication, oversee compliance, or monitor timelines? This way, everyone is aligned, and they know what to do.
Pre-transition audit and risk mitigation checklist
You also need to conduct an audit of your current systems and services to identify potential risks. This might include missing documentation, unsupported systems, or gaps in backups. Use this checklist to flag any concerns early, so they can be addressed before switching providers.
Creating a realistic timeline to minimise downtime
One of the most common mistakes businesses make is underestimating how long an MSP switch will take. Rushing the process often leads to missed steps and potential downtime. A realistic timeline gives everyone breathing room and reduces unnecessary pressure.
Most transitions follow these main stages:
- Preparation and internal review
- Selection and onboarding of the new MSP
- Handover of systems, data, and responsibilities
- Testing and fine-tuning services
- Full cutover and monitoring
Consider time estimates for onboarding, testing, and full deployment
Depending on the size and complexity of your environment, the transition can take anywhere from a few weeks to a few months. Onboarding alone can require several weeks, especially if custom configurations or compliance requirements are involved. Testing systems before going live is crucial to ensure that services run as expected and avoids surprises post-cutover.
Managing old and new MSP overlap
In most cases, there will be a period where both MSPs are active. This overlap should be clearly coordinated to ensure continuity. Make sure access rights, responsibilities, and deadlines are clearly defined to avoid finger-pointing or duplicated efforts.
Communication strategies for a smooth handover
Even with a solid plan and timeline, poor communication can derail an MSP transition. Keeping everyone in the loop, especially internal teams and both MSPs, is important for a successful handover.
Keeping internal teams informed
Don’t assume that only HR team needs to know what’s happening. Department heads, operations staff, and even customer support teams should be informed of the transition plan, particularly if it affects how they access tools or support.
Maintaining active dialogue with both MSPs
Open and structured communication between the outgoing and incoming providers is critical. Schedule regular check-ins and status updates, and make sure both parties understand the handover expectations.
Documentation and expectations setting
Maintain a shared transition document outlining key tasks, timelines, access credentials, and who is responsible for what. This avoids confusion and ensures everyone is on the same page throughout the process.
Choosing the right MSP for long-term success
After dealing with an underperforming managed service provider, it’s understandable to be cautious. A thoughtful evaluation process can help you avoid the same issues and choose an MSP that’s capable, reliable, and aligned with your long-term goals.
Evaluating MSP expertise and industry fit
Not all MSPs are the same, and a provider that works well for one company may not be the right fit for yours. The first step is making sure they understand your industry, your technology environment, and the level of support you expect.
Go beyond the standard sales pitch. Ask:
- What industries do you specialise in?
- Can you share examples of companies with similar needs you’ve supported?
- What is your experience with our specific systems and platforms?
- How do you handle compliance in regulated environments (e.g., GDPR, HIPAA)?
- What does your support model look like (response times, escalation paths, coverage hours)?
These questions help separate providers with real experience from those that simply talk the talk.
Ask for case studies or references related to your industry or business size. Don’t just read the materials; speak with existing clients if possible. This gives you a clearer picture of what working with the provider looks like day to day.
Assessing scalability and global support
Whether you’re planning to grow in size, expand to new regions, or move more services to the cloud, your next MSP should be able to support that growth and changes.
Ask about their experience managing environments across multiple locations or time zones. If your business is planning to scale, the MSP should have a flexible support structure that can handle added users, sites, or workloads without missing a beat.
Discuss your roadmap with them, where you see your business in 2–5 years, and see how they would support that vision. A good MSP won’t just say “yes,” they’ll provide a realistic, structured approach to helping you get there.
Legal, compliance, and security considerations
One of the most important factors you need to consider when switching your MSP is the legal, contractual, and security aspects that can have long-term implications for your business.
Without careful attention to these areas, you may encounter unexpected costs, service interruptions, or data risks. Taking the time to address legal and compliance issues now can prevent major problems later.
Reviewing contracts and exit clauses
Review the agreement you have with your current MSP and understand what your new contract should include.
Check if there are any penalties, notice periods, or restrictions tied to ending your current contract. Some MSPs include “lock-in” clauses or automatic renewal terms that can complicate your exit. Also review your service level agreements (SLAs). Understand what was promised and whether your current MSP delivered on those terms.
When reviewing new MSP proposals, make sure transition support is clearly defined. This should include help with onboarding, data transfer, and setup—not just “support available upon request.” Clarify who is responsible for what during the transition.
Cost structures and hidden fees
Ask for a complete breakdown of costs—both for onboarding and ongoing services. Watch out for unclear language about setup fees, license charges, or minimum usage commitments. Request these details in writing to avoid surprises later.
Negotiating SLAs for service excellence
Your Service Level Agreement is the backbone of accountability in your MSP relationship. A vague or overly generic SLA can leave you with little recourse if service quality slips.
Request uptime commitments (e.g., 99.9%), guaranteed response times for different issue levels, and a clear escalation path if issues aren’t resolved in time. Ask how performance is tracked and how breaches in the SLA are handled. Will you receive service credits, or is there a penalty structure?
Make sure SLAs reflect the reality of your operations. If you run a 24/7 business, you need more than 9–5 support. If some services are mission-critical, they should have higher priority in the SLA. Don’t assume all services are treated equally. Define what matters most to your business.
Ask what reporting tools or dashboards will be available to track performance metrics. The ability to monitor uptime, ticket resolution times, and other indicators helps keep the MSP.
Ensuring data security during the transition
One of the most critical risks during an MSP switch is mishandling of your business data. Without clear protocols, there’s a real danger of exposure, loss, or unauthorised access.
Secure handoff protocols and access control
Confirm that both the outgoing and incoming MSPs follow secure practices for transferring access credentials, system controls, and documentation. Access to systems should be revoked from the old provider only once the new one is fully operational, and this needs to be tightly managed.
Data backup and validation checkpoints
Ensure that full backups are taken before any migration starts. Moreover, plan for validation checkpoints after the handover to confirm that all data has been transferred intact and that nothing is missing or corrupted.
Cybersecurity risk during MSP changeover
The transition period is when your systems are most vulnerable. Make sure security monitoring remains active, and that the new provider is prepared to take over immediately. Temporary gaps in coverage, even for a few hours, can be enough for a breach to occur.
Post-transition optimisation: What to do next after the switch
Successfully switching MSPs is only the first step. Once the new provider is in place, your focus should shift to making sure the partnership delivers on its promises.
Post-transition optimisation is about verifying that your business is receiving the right level of service and identifying opportunities to improve how your IT operations run under the new arrangement. Without a clear review process, it’s easy to overlook issues or fall back into the same problems you experienced with your previous MSP.
Conducting a post-transition performance review
After the transition, your team needs a structured way to assess how the new MSP is performing. The evaluation should be an ongoing process, especially in the early months.
30/60/90 day check-ins with the new MSP
Set up formal review meetings at 30, 60, and 90 days post-transition. These check-ins help keep the provider accountable and give you a chance to raise any concerns early. During each meeting, review what’s working well, what needs improvement, and whether any promised services or features haven’t yet been delivered.
Feedback loops and improvement plans
Encourage open communication between your internal teams and the MSP. Collect feedback from departments and your contingent workers and pass this along to the provider. If issues come up, such as slow response times or unclear communication, ask the MSP to propose a plan for improvement, and follow up on progress in your next check-in.
Key metrics to assess success
Use clear, measurable criteria to evaluate the MSP’s performance. These might include:
- Ticket resolution times
- System uptime and reliability
- User satisfaction scores or internal feedback
- Security incident response times
- Compliance with SLAs
Having objective data helps you determine if expectations are being met—and gives you something concrete to refer to in future discussions.
Switching MSPs without the stress
Switching MSPs may feel like a big leap, but it doesn’t have to be disruptive or complicated. With the right support and a clear process, you can move on from outdated or ineffective service—and gain a more reliable, scalable, and responsive MSP experience in return.
When you break it down into clear steps, such as reviewing contracts, setting timelines, and aligning expectations, you can take control of the process. There’s no need to rush or risk disruptions when the switch is handled methodically.
The most successful transitions are the ones that start with careful planning and ongoing communication. That means keeping internal teams in the loop, ensuring both MSPs are coordinated, and defining roles and timelines upfront.
The right partner can significantly enhance your contingent workforce program and reduce long-term risks. A capable MSP doesn’t just fix problems; they help prevent them, support your long-term goals, and give your teams confidence in the systems they rely on every day. Making the switch is your chance to find a partner who’s aligned with where your business is headed.
How CXC can support your transition
At CXC, we understand the challenges that come with moving on from an underperforming provider. We’ve helped businesses create clear transition roadmaps, evaluate new MSPs, and stay secure throughout the handover process. Here’s how we support you from start to finish:
Dedicated transition team
From the moment you decide to switch, our transition team steps in to coordinate the process. That includes managing your exit from the current provider, ensuring critical systems remain intact, and aligning the new setup with your compliance and operational requirements. You don’t have to chase vendors or manage timelines alone; we do the heavy lifting so you can focus on growing your business.
Transparent pricing and no surprise costs
One of the biggest frustrations companies face when switching MSPs is unclear billing. We believe in full transparency from day one. That means clearly outlining the scope of services, onboarding costs (if any), and what’s included in your support model—so you’re never left guessing or dealing with unexpected fees.
Global expansion support
If your business is growing across regions or entering new markets, your MSP should be able to grow with you. CXC supports multiple regions or countries, so whether you’re expanding your footprint or shifting operations, we make sure we can support you every step of the way.
Ready to switch to an MSP that truly supports your business? We’re here to make the transition simple and stress-free. Talk to our team today.
