If you're relying on managed IT services yet still facing downtime, inefficiencies, or miscommunication, you're not alone. According to CloudSecureTech, 60% of small companies that get hit by a cyber attack go out of business within six months.

Kevin O'Connell, COO, PCS Managed Services, LLC says, "In today's market, alignment and agility define the MSPs that will lead versus those that will lag behind."

In this blog, a leading MSP in Memphis explores the IT managed services challenges most organizations face and provides actionable ways to address them and get more value from your provider.

1. Misaligned Expectations: A Common Managed Services Challenge

When your provider's promises don't match your reality, frustration builds fast.

The most common pain point? Misaligned expectations around SLAs, scope, and response times.

What causes it:

• Vague service-level agreements (SLAs) that don't clearly define "response" vs "resolution"
• Clients assuming unlimited coverage while the provider limits scope
• Ambiguity in uptime guarantees and performance metrics

Your action plan:

• Require SLAs with measurable targets, e.g., ≤ 60 minutes response and ≥ 87 % first-call resolution.
• Hold quarterly business reviews (QBRs) to compare promised vs delivered outcomes.
• Define shared responsibilities from day one (e.g., patching, device standards, user training).

2. Cybersecurity Pressures: A Core IT Managed Services Provider Challenge

In today's threat landscape, every provider faces an increasing risk of cyberattacks and data breaches. On an average, there is a hacker attack every 39 seconds.

For most organizations, cybersecurity remains the number one concern when managing IT services and the pressure on service providers to maintain strong, layered defenses has never been higher.

Key difficulties include:

• Keeping pace with zero-day vulnerabilities and ransomware trends
• Managing client compliance for frameworks such as NIST, HIPAA, or PCI
• Convincing providers to maintain patches and updates consistently

Actionable next steps:

• Request continuous monitoring and layered protection (endpoint, network, cloud).
• Ask your provider to share threat-prevention metrics and incident-response readiness.
• Schedule employee cybersecurity training at least quarterly.

3. Staying Current: Managed Services Providers Challenges with Rapid Tech Change

The pace of innovation is accelerating, and many MSPs struggle to keep up. Providers that fail to modernize their tools and processes risk falling behind competitors and delivering outdated service experiences.

Common pain points:

• Legacy infrastructures misaligned with today's hybrid and cloud models
• Skill gaps among engineers and support teams
• Over-reliance on outdated or non-integrated systems

How you can stay ahead:

• Ask your provider for proof of vendor certifications and continuing education.
• Review their technology roadmap annually to ensure modernization.
• Confirm they use best-of-breed technology stacks to support your business growth.

4. Scaling Efficiently: One of the Most Overlooked Managed Services Challenges

As your business or your provider grows, maintaining consistent service quality becomes increasingly difficult. Scaling operations is one of the most common and persistent challenges faced by managed service providers today.

What goes wrong:

• Ticket volumes increase faster than staffing
• Documentation becomes inconsistent
• Reactive firefighting replaces proactive support

Solutions that work:

• Insist on documented processes and workflow automation (PSA, RMM tools).
• Establish dedicated account managers for continuity.
• Set clear escalation paths and issue-classification tiers.

5. Communication and Transparency: A Persistent IT Managed Services Challenge

It's frustrating when you don't know what's happening with your IT. Lack of visibility leads to mistrust, even when your provider is working hard behind the scenes.

How to fix it:

• Ask for dashboards that show uptime, resolution time, and security posture.
• Schedule regular update meetings to discuss performance reports.
• Require clear, jargon-free documentation of completed tasks and next steps.

Transparency builds confidence and that confidence turns IT from a service into a partnership.

6. Proving ROI: One of the Hardest IT Managed Services Provider Challenges

Even when your provider performs well, demonstrating value remains tough. IT investments are often invisible until something breaks.

Typical issues:

• Proactive maintenance isn't "seen," so leadership questions its cost.
• Providers may fail to connect metrics to business outcomes.

What you can do:

• Set defined success metrics: downtime reduction, faster issue resolution, fewer recurring tickets.
• Request quarterly ROI reviews showing the impact of proactive work.
• View your provider as a growth enabler, not just a cost center.

7. Coordinating Vendors: A Complex Managed Services Providers Challenge

Today's IT environments span multiple vendors like cloud, SaaS, network, and security, all with separate SLAs. Managing this ecosystem is a growing challenge for providers and clients alike.

Where it breaks down:

• Conflicting support processes between vendors
• Finger-pointing during outages
• Lack of documentation around system dependencies

How to overcome it:

• Establish a single point of contact for vendor communication.
• Map dependencies across systems and assign ownership.
• Include vendor-management duties directly in your MSP agreement.

Comparison Table: Common Managed Services Challenges and Solutions

Turning Managed IT Services Challenges Into Strategic Advantages With Memphis's Top MSP

You've seen how IT managed services challenges from expectation gaps to cybersecurity, scalability, and vendor coordination can quietly drain value and momentum from your business. The key is partnership with a provider who understands these realities and solves them proactively.

PCS Managed Services stands out among managed service leaders for its transparency, proactive security posture, and ability to scale without sacrificing quality. If you're ready to overcome your managed services challenges, Contact Memphis's trusted managed services provider today to schedule a consultation and realign IT with your business success.