This document provides 10 questions to consider before outsourcing IT operations or support services to a managed service provider (MSP). The questions address determining needs and goals, evaluating costs, vetting potential providers, establishing service level agreements and communication plans, and implementing a proof of concept to minimize risks. Key areas of focus include conducting benchmark and cost assessments, defining goals beyond just cost-cutting, developing a roadmap and execution plan, and clearly communicating roles and expectations.

1. 10 Questions
to ask about
IT Outsourcing
Before deciding to outsource IT
operations or support services to a
Managed Service Provider (MSP),
build a business case and carefully
evaluate your needs, including drivers
for innovation, growth and financial
objectives.
1. State the problem.
2. Propose the solution.
3. Ensure the solution aligns
to business outcomes.
4. Understand current costs for
keeping services in-house.
5. Determine the cost of
outsourcing.
6. Look for hidden expenses.
7. Evaluate the return on
investment.
8. Does it make sense to
outsource?
Question 1
Do you have a good
reason to outsource?
Question 2
Have you conducted a benchmark assessment?
Understanding metrics within your industry will help you identify
opportunities for improvement so you can close performance gaps.
Common benchmarks to consider for managed IT services
Ticket
rates by
source
Tickets per
user per
month
Tickets per
technician
per month
Mean
Time to
Resolution
(MTTR)
First-Call
Resolution
(FCR)
percentage
Question 3
Do you have a goal?
Set goals that are well-defined
and specific. If you’re having
difficulty stating your objectives,
consider adjusting the scale
and scope of the project.
While decision-makers, especially in procurement, are focused on
cost-cutting, it shouldn’t be your sole objective. MSPs can fill a variety
of strategic needs. Successful organizations look for value that goes
beyond cost-cutting and aligns to business outcomes.
Question 4
Is cost-cutting your only priority?
Well defined goals will help you:
• More easily communicate needs.
• Obtain unambiguous proposals.
• Avoid hidden costs.
• Set realistic timelines.
Question 5
Has your service
provider been
fully vetted?
• Do your organizations share similar
values?
• Does the company culture align to your
own?
• Is the pricing structure transparent?
• Will the MSP meet or improve security
standards?
• Can the MSP meet the same compliance
standards as in-house teams?
• Will the MSP provide dedicated contacts
and resources?
Freeing resources to focus on core business
Providing access to skills not available
in-house
Reducing costs
Improving flexibility in the use of resources
Improving the ability to innovate1
49%
46%
45%
39%
15%
Question 6
Do you have a detailed roadmap?
A roadmap for service
implementation will
help you monitor
your progress and
how your service
provider is tracking
toward goals and
milestones.
Look for holes in the plan. Bringing
internal stakeholders into the
conversation early in the process
can help you avoid unanticipated
roadblocks and expenses.
Plan for risks and how to
mitigate them.
• Communication difficulties
• Disruptions to business
continuity
• Data security and privacy
vulnerabilities
• Unexpected or hidden costs
• Quality of service
Question 7
Does the execution
methodology
make sense?
Question 8
Are your Service-Level Agreement (SLA)
metrics realistic?
Your benchmarking exercise can help you set strong, achievable SLAs.
These will also help MSPs better understand and meet your expectations.
Sample roadmap
End-usersupport
Workplace Services: Modern Workforce
24/7 service desk Implement SLA-driven, demand-based, global service desk.
Live chat 15% adoption 25% adoption >25% adoption
Knowledge
management
Phase 1 for IT support: Increase FCR% — Phase 2 for end user: Foundation of self-service portal
Self-service portal 5% adoption 10% adoption >15% adoption
Single sign-on portal
Ability to layer in key applications for ease of access, reduction of
passwords
Password reset tool 2% ticket reduction 4% ticket reduction >5% ticket reduction
Account management
automation
Task reduction / condense new hire & termination time frame
Deskside support Transition deskside technician roles to MSP
Dispatch support Support small footprint facilities with on-demand dispatch model — Global
Software distribution
Self-service and ticket reduction | 1–2 % ticket
reduction
Chatbots
Self-service support stream | 5– 10% ticket
reduction
Incident prevention
Proactive endpoint
management
Governance and transformation — Foundation of program management and transformation
Integration Year 1 Year 2 Year 3
Build phase Run phase/benefits
Pro tips on SLAs
• Set SLAs that will close
performance gaps based on
benchmarks.
• Consider pairing SLAs with
satisfaction survey results.
• If SLAs are missed, work with
your MSP to find root causes.
• Be prepared to change SLAs as
business needs evolve.
Question 9
Have you seen a
proof of concept?
Minimize risks by asking for
a proof of concept. This will
give you a chance to identify
and solve issues that weren’t
obvious in the initial proposal.
Proof of concept benefits
• Opportunity to refine
implementation plan
• Data to support business case
• Chance to address
communication or support gaps
• Reduced risk to business
Good communication will have the biggest impact on the success of
your service implementation. Establish roles and responsibilities early
on and ensure expected outcomes are always clearly communicated.
Question 10
Have you established a clear system of
communication?
Communication is key.
• Put a process in
place for escalating
issues.
• Implement
collaboration apps
as needed.
• Provide training
for internal and
external teams.
• Communicate
regulatory and
security standards.
• Meet regularly
to track progress
toward goals.
1
Raconteur. (2018, May 3). Future of Outsourcing.