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Top 5 Misconceptions About Managed Services
Providers

Mike Hulbert

There are a lot of assumptions made about Managed Services Providers (MSPs). Sure, many MSPs might look the same, but it’s how they work with you and the level of support they provide that makes all the difference.

Picking the right MSP can substantially improve your IT and help your business grow, but that means understanding what sets them apart from each other — and recognizing there are stark differences between good ones, great ones, and those ones you may have opted to cut ties with in the past. Let’s take a look at some of the major misconceptions people have about managed service providers.

1. "All MSPs are the same"

It’s easy to think that all MSPs are pretty much the same since many use similar tools and offer comparable services. But the reality is, it’s the people and processes that really make the difference. A good MSP should have more than just technical know-how; they need to have a team with strong problem-solving skills and a customer-centric approach.

Not all MSPs are equipped to handle complex scenarios like mergers, acquisitions, or major tech upgrades. Some only focus on basic ticket handling and small-scale issues. To stand out, an MSP should be able to scale services as your needs grow and be capable of delivering end-to-end solutions—whether it’s routine management, large-scale projects, or navigating the latest technology trends.

Look for a provider that’s well-rounded: one that can act as a trusted partner throughout your business’s lifecycle, not just a company that checks boxes and resolves day-to-day issues. They should have strategic partnerships with industry leaders and a team that understands the bigger picture of your technology needs, ensuring they can support your business through every stage of growth.

2. "They require long-term or ironclad contracts"

It’s a common concern that MSPs will trap you in long-term contracts with no flexibility, but a reputable MSP shouldn’t require you to take a gamble like that. Instead, they should offer a range of options, such as 1-year, 3-year, or in some cases even month-to-month agreements to accommodate your needs.

A good provider will also include satisfaction guarantees or easy exit clauses in their contracts, giving you peace of mind that you’re not stuck if the service doesn’t meet your expectations. For instance, you can get up to 30 days of service refunded if you’re not satisfied with our service and we can’t make it right.

This way, you get the flexibility to choose a commitment level that makes sense for your business without worrying about being locked in long-term if circumstances change.

You should have options that both fit your needs and help you feel confident in your decision.

3. "MSPs focus on technology, not business outcomes"

Many people believe that MSPs are too focused on managing technology and fail to consider the broader business outcomes of their clients. A quality MSP, however, should go beyond just maintaining your technology. They should be taking the time to understand your business objectives and tailor their services to support those outcomes, helping you plan for the future in the process.

Look for providers that can give you monthly or quarterly business reviews, regardless of your size or spend. These reviews should include strategic recommendations for infrastructure improvements, helping businesses plan and stay competitive. 

Similarly, a Technology Business Canvas at the outset of your MSP partnership can give you a long-term roadmap that not only addresses immediate technical requirements but also helps align IT investments with your business’s future growth objectives.

Managed service providers shouldn’t merely be about fixing problems or handling tickets — they should help your business grow by making sure your IT is on track to support your direction.

4. "An MSP is too expensive for us"

Many businesses assume that outsourcing IT management to an MSP is cost-prohibitive. While it’s true that upfront costs may sometimes appear comparable to maintaining in-house IT, MSPs often provide long-term savings through efficiency and improved service levels.

For instance, MSPs help you get better service by using tools that have been fine-tuned over time. Things like service level agreements (SLAs) ensure your issues are dealt with quickly, and you get the benefit of tools and expertise that would cost a fortune to build in-house.

Plus, you need to factor in the cost of:

  • Building and maintaining monitoring systems
  •  Hiring and training technical staff
  •  Keeping up with evolving technology

A great MSP will provide round-the-clock monitoring, access to a well-trained team, and solutions that are ready to go. When you look at these bigger picture costs, the savings can really add up​​.

5. "They’ll force me to use tech I don’t like, don’t want, or don’t know"

One of the biggest fears about working with an MSP is that they’ll push you into using systems you’re unfamiliar with or don’t want. But an experienced MSP shouldn’t require customers to migrate to their preferred platforms just to access their services. Instead, they should work with your existing technology stack and adapt their support to fit your environment.

A good MSP might suggest cost-effective alternatives from trusted vendors if they see a clear benefit for your setup, but these should always be recommendations, not requirements. The goal should be to help you get the most out of your current investments, without forcing you into a one-size-fits-all solution.

Any changes should be based on your priorities, budget, and timeline—not theirs. In the end, a solid MSP partnership means you maintain control, and any tech shifts are made at your pace and comfort level.

See the difference with Katalyst

Katalyst stands out from other MSPs by offering flexible, customer-focused solutions, backed by deep technical expertise and top-tier partnerships with industry leaders. Our team is driven by making a real impact, and it shows—our CSAT score of 94.9%, a rolling average over the past 90 days, reflects the trust and satisfaction we’ve earned from our clients (we keep the live rating on our homepage to stay accountable).

At the end of the day we’re trying to do good things for customers, so getting that positive feedback is a big motivator, and our team loves to see the difference they help create for customers.

With fair pricing, deep expertise, guaranteed services, and a commitment to helping businesses grow, we’re here for you. Get started with Katalyst managed services today so we can help you drive growth with your technology.

Mike Hulbert

VP, Services

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