Changing Managed Service Providers (MSPs) can feel like the right move when service quality drops or your business outgrows a vendor.
Yet, while a new MSP may promise faster response times or stronger security, the switch itself carries risks and costs that many leaders overlook.
As Peter Swarowski, Chief Information Officer at Intelligent Technical Solutions (ITS), shared in a recent discussion, “Sometimes people don’t realize there’s an actual price tag for switching MSPs. Beyond contracts, there are hidden expenses and lost time if you don’t plan well.”
Below are the most common costs executives face when moving to a new provider, along with tips to reduce their impact.
1. Contract Termination and Exit Fees
Before leaving your current MSP, review your agreement carefully. Some contracts require 30 to 60 days’ notice, while others may include early termination fees if you break a term agreement.
Peter explained, “We have some contracts that may have a fee or payout… terms can depend on the contract.” Failing to understand these details can result in paying for months of unused service or unexpected penalties.
How to avoid this cost:
- Audit your current contract before starting MSP interviews.
- Negotiate a clear exit clause with any future provider.
- If possible, align the start of the new service with the end of your current notice period.
2. Opportunity Costs and Downtime
Switching MSPs involves more than signing paperwork. Data, credentials, and tools must be handed over, and your staff will need to adjust to new support channels.
If the transfer is poorly timed, your team could face outages or delays, which translate to lost productivity.
How to avoid this cost:
- Plan the transition during slower business periods.
- Create a clear handoff checklist for access, backups, and security settings.
- Schedule onboarding sessions early so employees know how to request support.
3. Data Migration and Documentation Gaps
Moving systems, passwords, and configurations is one of the most overlooked expenses. Without proper documentation, engineers at the new MSP may spend extra hours recreating settings or hunting for missing details.
“Sometimes it’s not the technology,” Peter shared. “It’s making sure we get everything from the last provider so the new team isn’t starting blind.”
How to avoid this cost:
- Ask your outgoing MSP for complete documentation, including network diagrams and credentials.
- Verify that backups are current and accessible before the migration.
- Choose a provider with a dedicated onboarding specialist who can verify every step.
4. Training and Change Management
Your staff may need to learn new ticket systems, escalation paths, or support expectations. Even if the new MSP offers better tools, productivity can dip while employees adjust.
How to avoid this cost:
- Request short training sessions or quick-start guides from your new MSP.
- Encourage your leadership team to model the new processes.
- Communicate early so employees understand why the switch benefits them.
READ: Security Awareness Training: What It Is and Why It’s Important
5. Service Gaps During the Transition
One of the most serious risks is a period when no one fully owns your IT environment. If a breach or outage occurs during that window, recovery can be slow and expensive.
“When clients move on, we want to make sure there’s no dip in quality… we work to minimize gaps so the experience stays consistent,” Peter said.
How to avoid this cost:
- Overlap the outgoing and incoming MSP services for a short time.
- Define clear start and end dates for support responsibilities.
- Monitor critical systems closely throughout the changeover.
Ready to Avoid Costly Pitfalls When Switching MSPs?
Switching MSPs can lead to better service and stronger security, but only if you manage the process carefully. Here are three steps to protect your budget and peace of mind:
- Evaluate thoroughly: Confirm your reasons for leaving and make sure they justify the effort.
- Document everything: Keep a complete record of systems, policies, and contacts.
- Choose an experienced partner: A provider with structured onboarding will guide you through each stage.
“We’ve helped many clients through transitions,” Peter said. “The key is planning and clear communication so no one is surprised.”
The true cost of switching MSPs is more than the invoice from your new provider. Time, staff focus, and unplanned outages all affect your bottom line. By understanding these risks and planning for them, you can enjoy the benefits of a new partner without unnecessary disruption.
Ready to explore a better way to manage IT? Schedule a consultation with ITS to discuss how we can help you transition smoothly and keep your data safe.
Need more information about switching IT providers? Check out the resources below:
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