Managed Service Providers (MSPs) face increasingly complex challenges, particularly during client onboarding. This discussion highlighted critical considerations for MSPs aiming to protect their business, maintain client satisfaction, and proactively manage risks.
The Legal Landscape and the Importance of Clear Contracts
A foundational element of successful MSP onboarding is a well-defined legal framework. The discussion emphasized that a clear contract is not merely a formality; it’s a crucial tool for setting expectations and defining the roles and responsibilities of both the MSP and the client. This contract should outline the scope of services, the client’s obligations (like implementing MFA), and the delineation of responsibilities during the often-vulnerable implementation period.
Key Takeaway: Establish a “go-live date” separate from the contract effective date. During the implementation phase, clearly define the MSP’s and the client’s responsibilities to mitigate risk and clarify service commencement.
Shifting Risks: From Sales to Service Delivery
The increasing complexity of cybersecurity has expanded the scope of responsibility. MSPs must proactively manage the risk associated with a more involved service delivery, especially during transitions of ownership. This requires an understanding of potential liabilities associated with data security. During any period where both outgoing and incoming service providers are involved, it is critical to define precisely the obligations and expectations of everyone involved to ensure protection for all.
Key Takeaway: Proactively engage with clients on their evolving needs, especially considering the proliferation of SaaS applications and potential Shadow IT. This proactive approach allows to manage those risks appropriately and build better relationships.
Addressing Client Security Measures
Enforcing robust security practices, such as Multi-Factor Authentication (MFA), can be a challenge. The discussion highlighted the importance of education and demonstrating the value of MFA. If a prospective client is unwilling to implement these basic security measures, the MSP must consider their own potential risk. It was suggested a staged rollout of MFA is an option, but it is also the responsibility of the MSP to recognize and express the appropriate limitations.
Key Takeaway: Clearly define and manage the responsibilities, and be prepared to enforce these standards or to consider whether you can effectively provide services to a client that may not meet them.
The Future of Managed Services: Co-management and its challenges
The rising popularity of co-managed IT services brings new complexities. The discussion examined the risks involved when responsibilities are shared between the client and the MSP, with different product stacks and different access controls. This requires the MSP to be diligent with documentation and in setting expectations, and to clarify the boundaries of service responsibilities. The value of well-defined service containers that clearly outline responsibilities was also highlighted.
Key Takeaway: If co-management is offered, make sure you’re creating service containers that clearly set client responsibilities, your responsibilities, and expectations. Remember to price accordingly to reduce risk.
Moving Forward: Adaptability and Ongoing Vigilance
As the cyber threat landscape changes, MSPs must adapt their approach. This includes regularly reviewing and updating managed services agreements, embracing technology, and continuously educating clients. The conversation concluded by emphasizing the importance of being proactive, embracing change, and fostering open communication to ensure a successful and secure environment.