Top 7 IT Outsourcing Best Practices for MSPs

In today’s fast-paced digital world, Managed Service Providers (MSPs) are under constant pressure to deliver reliable, secure, and cost-effective IT solutions. As client demands grow and technology evolves, IT outsourcing for MSPs has become a strategic way to stay ahead—helping providers scale faster, control costs, and maintain service quality.

Introduction

Whether it’s infrastructure monitoring, endpoint management, or outsourced help desk support, partnering with specialized IT vendors allows MSPs to focus on what matters most: delivering exceptional client experiences and driving business growth. However, outsourcing isn’t just about delegation—it requires the right approach, clear communication, and adherence to proven best practices for MSPs to ensure success.

1. Define Clear Objectives and Scope

For MSPs, clarity means defining which client services should be outsourced versus retained in-house. It means identifying what IT functions—such as patching, backup, helpdesk, or network monitoring—can be better managed by an external partner. In addition to the high-level service area, documenting a detailed scope ensures that responsibilities are well understood, prevents scope creep, and aligns expectations between stakeholders and providers.

2. Choose the Right Partner, Not Just the Lowest Cost

MSPs may be tempted to select providers based on cost and margin impact when delivering services across many clients. Cost reduction for service delivery can and should be one of the outcomes of working with an outsourced partner, but there is so much more. Partners should bring technical depth, industry expertise, cultural fit, and a track record of supporting organizations similar to yours. Look for partners that have certifications such as ISO 27001 and that follow best practice processes like ITIL to ensure you partner with an organization that is secure and professional. A good partner becomes a true extension of your team.

3. Establish Strong Governance and Communication

Outsourcing should never be a “set it and forget it” arrangement. MSPs require frameworks for client reporting, ticket escalations, and SLA adherence. Successful engagements should include regular check-ins, performance tracking, and compliance reviews. Strong communication practices—weekly status calls, monthly service reviews, and executive-level QBRs—help ensure both sides remain aligned on goals and outcomes.

4. Prioritize Security and Compliance

For MSPs, security is a differentiator in the marketplace. Protecting client environments with strong access controls, regular audits, and adherence to frameworks like ISO 27001 builds trust. Outsourcing introduces third-party risk—so contracts must require providers to meet compliance obligations (HIPAA, PCI-DSS, GDPR, etc.) and support audits as needed. A shared security model ensures accountability on both sides.

5. Consider Different Engagement Models

MSPs should work with partners that offer multiple delivery models to match business needs with the right level of support.

Shared services allow organizations to outsource specific tasks such as managing a set of devices or handling a bucket of helpdesk tickets, which can be highly cost-effective for routine work.

Dedicated engineers can support staff augmentation, offering consistent coverage with varying levels of experience and technology specialization, typically working full-time under customer direction.

Project-based fits best with time-bound initiatives where work can be purchased in hourly blocks and allocated to specific technology projects, providing flexibility and predictable costs.

By blending these models, organizations can optimize outsourcing for both day-to-day operations and strategic initiatives.

6. Start Small, Then Scale

This could mean outsourcing a specific layer of service delivery, like NOC or helpdesk support, before expanding into more advanced functions like cybersecurity or cloud management. Even more specifically, MSPs can start by piloting with a small set of services (for example, patch management or backup monitoring) that will allow them to validate the provider’s capabilities before entrusting more critical workloads. A phased approach reduces risk and builds trust over time.

7. Foster a Partnership Mindset

The most successful outsourcing relationships thrive on collaboration. MSPs should treat outsourced providers as strategic partners who can enhance client value, not just a transactional vendor. They should bring providers into long-term planning discussions and technology roadmaps. A partnership mindset ensures adaptability, continuous improvement, and innovation.

Final Thoughts

MSPs are delivering services to multiple clients and balancing growth with limited resources. IT outsourcing can unlock real value. By defining objectives, selecting the right partner, enforcing governance, protecting security, and fostering a partnership mindset, organizations can maximize benefits while minimizing risks. When done right, outsourcing is much more than just a cost-saving tactic—it is a strategic enabler for growth, resilience, and innovation.

For more information on how you can optimize outsourcing to fuel your managed services business, we welcome the opportunity to connect. Click here to set a 15-minute meeting, give us a call or send an email.

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Nick Blozan

VP Sales & Marketing

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