BOTTOM LINE
Switch MSPs before your renewal deadline. At $18K monthly for 120 users, you're paying premium rates ($150/user/month) but getting degraded service, a clear value breakdown. The 90-day termination clause gives you flexibility, but waiting past renewal locks you into another year of underperformance.
YOUR SITUATION
You're a 120-person consulting firm generating $28M in revenue with an MSP contract costing $216K annually. Service quality has declined with slower response times, creating operational friction for client-facing work. Your current contract renews in 60 days with a 90-day out clause, and you have two alternative proposals in hand but lack benchmarks for evaluating MSP performance at your scale.
DECISION STATEMENT
Whether to terminate the current MSP relationship before contract renewal or negotiate service level improvements with the incumbent provider.
BUSINESS EXPOSURE & COST OF DELAY
At your revenue scale, IT downtime costs approximately $3,000-$5,000 per hour in lost billable capacity. Poor MSP response times compound this: what should be 15-minute fixes stretch to hours, directly impacting client deliverables. For a consulting firm, technology friction also damages your professional brand with clients who expect seamless digital collaboration.
Cost of waiting: Renewing the current contract locks you into 12 more months of degraded service. Based on typical consulting firm utilization rates, even a 2% productivity drag from IT friction represents $560K in lost billable capacity annually. Missing your 60-day decision window forces either expensive early termination fees or enduring subpar service through 2027.
THE PANEL'S ASSESSMENT
MSP performance at your size hinges on dedicated account management and proactive monitoring, not just reactive ticket response. Many providers excel at either small business break-fix or enterprise-scale projects but struggle with the hybrid needs of growth-stage professional services firms. The fact that you have two competing proposals suggests the market recognizes your incumbent is vulnerable, use this leverage decisively.
OPTIONS & TRADE-OFFS
| Option | Description | Timeline | Est. Cost Range | Primary Risk |
|---|---|---|---|---|
| Option A | Transition to best alternative MSP before renewal | 45-60 days | $12K-$15K/month ongoing | Migration disruption during transition |
| Option B | Negotiate SLA improvements with current provider | 30 days | $16K-$18K/month | No structural change to underlying service issues |
| Option C | Renew current contract, evaluate alternatives later | Immediate | $18K/month | Locked into underperforming relationship for 12 months |
RECOMMENDATION
Terminate the current MSP relationship and transition to the best alternative proposal before your renewal deadline. At 120 users, you should expect $125-$140/user/month with strong SLAs, dedicated account management, and proactive monitoring tailored to professional services workflows.
Owner: CEO with IT lead supporting vendor evaluation Decision window: 30 days to allow 2-week transition period before renewal Why this path: Current pricing is above market while service quality has declined, a combination that only worsens with contract renewal
RISK REGISTER
| Risk | Likelihood | Impact | Mitigation |
|---|---|---|---|
| Transition disruption affects client work | Medium | High | Schedule transition during low-utilization period, maintain current provider overlap |
| New MSP overpromises capabilities | Medium | Medium | Require client references from similar-sized consulting firms, pilot critical systems first |
| Current MSP retaliates with poor transition support | High | Medium | Document current state thoroughly, engage legal on transition obligations |
INDUSTRY PERSPECTIVE
"Professional services firms your size need MSPs who understand billable hour pressure and client confidentiality requirements. Look for providers with dedicated consulting practice expertise, they'll proactively monitor your CRM, project management tools, and client portals instead of just responding to tickets. The best ones offer after-hours support aligned to your client deadlines, not just business hours. At $28M revenue, you should also expect quarterly business reviews focused on technology enablement, not just incident reports."
L. Mercer, Professional Services & PSA
30 / 60 / 90 DECISION ACCELERATOR
| Phase | Action | Owner | Measurable Outcome |
|---|---|---|---|
| 30 Days | Score both proposals against defined criteria, select winner, negotiate final terms | CEO | Signed contract with new MSP, transition plan approved |
| 60 Days | Execute migration plan with current/new MSP collaboration | IT Lead | All critical systems migrated, user acceptance confirmed |
| 90 Days | Evaluate new MSP performance against baseline SLAs | IT Lead | Response time metrics improved 40%+, client-facing incidents eliminated |