When your Managed Service Provider (MSP) isn’t meeting expectations, missing patches, and has unresolved tickets, slow response times, or weak cybersecurity support, it’s tempting to cut ties immediately.
But for most business leaders, walking away from a bad MSP isn’t so simple. The fear of operational disruption, data loss, or a messy transition often keeps companies stuck in toxic IT relationships longer than they should be.
So how can you break up with your MSP without putting your business at risk?
We sat down with Matt Estes, Director of Sales at Intelligent Technical Solutions (ITS), who has helped countless companies navigate this process. In this article, Matt dives into the following:
Recognize the Red Flags First
Sometimes the signs are glaring. Other times, they creep up slowly. Either way, if your MSP is no longer meeting your needs, the consequences can be costly.
Here are some common signs it’s time to make a change:
- You're constantly chasing them for updates
- Security issues or compliance gaps keep popping up
- You’ve grown, but they haven’t adapted
- They’re reactive, not strategic
- Critical systems are being mismanaged or ignored
In many cases, business owners endure poor service because the pain of switching feels riskier than the status quo. But according to Matt, that fear is exactly what a smart transition plan should eliminate.
Why a Full Break Isn’t Always the Best First Move
The instinct to rip and replace your MSP might feel right emotionally, but it’s not always the best operational move.
“Switching MSPs is worse than moving,” Matt joked. “I just moved. It was a pretty terrible experience. So, if your provider is still doing, say, the reactive help desk really well, keep them. Let’s co-manage this instead.”
That’s why Matt often recommends a co-managed IT approach as a first step. This model allows ITS to act as an overlay, taking over the critical pieces your current provider is missing (like cybersecurity, patching, or strategic planning), while still letting your existing MSP handle day-to-day support until the contract runs out.
This keeps operations stable while setting up your next phase of IT support.
“We build a solid proof of concept,” Matt explained. “Then it’s a natural progression for us to take over the other services when their contract ends with their current MSP.”
How to Structure a Low-Disruption Exit Plan
Leaving an underperforming Managed Service Provider doesn’t have to feel like a high-risk gamble. With the right strategy, you can exit your MSP contract in a structured, secure, and controlled manner, without risking downtime, compliance issues, or frustrated end users.
Here’s how to transition out, one step at a time:
1. Identify What’s Broken, and What Still Works
Before making any moves, take a comprehensive look at what your current MSP is doing poorly and what they’re still handling well. Don’t generalize. Instead, audit specific services across the following categories:
- Cybersecurity – Are vulnerabilities being patched promptly? Are there gaps in endpoint protection or MFA?
- Compliance – Are you confident your IT partner is helping you stay audit-ready?
- Help Desk Support – Are issues being resolved quickly, or are tickets piling up?
- Strategic IT Planning – Do they help you plan for growth, or are they simply reacting?
- Communication & Reporting – Are you left in the dark, or receiving regular updates and insights?
This clear-eyed assessment will help you pinpoint exactly where supplemental support is needed.
2. Involve the Right Decision Makers Early
Breaking up with an MSP isn’t just a technical decision, it’s a strategic one. According to Matt Estes, one of the biggest mistakes companies make is assigning the transition to a single person, often an IT manager or office admin, without involving other key stakeholders.
Instead, bring in:
- Technical leadership (CIO or IT manager) to assess service quality
- Compliance or legal teams to review contractual risks
- Executive sponsors (CEO, COO) to champion the business case
- Finance to evaluate cost implications and ROI
“As soon as I have two or more people involved and we identify a very specific need, that’s when I know it’s the real deal,” Matt said. “That way, I know we’re not just solving one person’s problem, we’re solving the company’s problem.”
Cross-functional buy-in ensures the transition is aligned with your company’s goals and avoids internal roadblocks later.
3. Start with a Co-Managed IT Model
Start with a Co-Managed IT ModelOne of the smartest moves you can make is not to switch providers cold turkey. Abrupt transitions increase the risk of finger-pointing, missed tickets, or worse, downtime.
A co-managed IT model allows you to bring in a second MSP (like ITS) to fill in the gaps without replacing your existing provider immediately. This approach gives you:
- Continuity of service – Your team won’t notice any interruptions or changes.
- Focused improvement – Address urgent gaps like cybersecurity or compliance first.
- Proof of value – You get to “test drive” your future MSP without a full commitment yet.
Example: ITS might step in just to handle cybersecurity and patch management, while your current MSP continues managing help desk tickets. Once the new MSP demonstrates reliability and results, you can transition the rest over.
4. Let Performance Earn the Full Relationship
Rather than forcing a full switch, let your new MSP earn the right to take over more services. This phased approach builds trust, reduces resistance, and gives you evidence of performance before you fully commit.
Look for improvements in key metrics:
- Reduced unresolved tickets
- Faster response times
- Increased security posture (fewer incidents, better reporting)
- Greater strategic IT guidance
As your team experiences the difference, they’ll naturally advocate for a full transition—and by the time the old contract ends, you’re ready to move forward with confidence.
5. Plan Your Final Offboarding Carefully
Once the decision is made to exit fully, plan the handoff like a project:
- Review the old contract for exit clauses, penalties, or required notices.
- Export all data, documentation, and credentials securely.
- Conduct an offboarding checklist that includes DNS settings, access credentials, admin logins, and backup policies.
- Schedule a cutover date with minimal operational impact (typically outside business hours).
Having a provider like ITS involved from the start means this final step is far smoother, because they’ve already been working in the background and are familiar with your environment.
Ready to Make the Exit, Without the Mess?
Transitioning away from a bad MSP doesn’t have to be chaotic or risky. With the right plan in place, you can move forward without missing a beat, and finally get the level of support, security, and strategy your business deserves.
If you're starting to feel stuck, don’t wait until a compliance deadline or cyber incident forces your hand. A low-disruption plan gives you the clarity, control, and confidence to exit smartly.
At ITS, we’ve helped hundreds of businesses transition away from underperforming providers with minimal disruption to their team or operations.
Whether you need a full takeover or just supplemental support, we’ll help you exit on your terms. Schedule a free consultation to find out how we can help.
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