Top Problems US Local Governments Face When Hiring MSPs (& Solutions)

With budget constraints, evolving technology, and increasing cyber threats, many local governments consider hiring managed IT service providers (MSPs) to handle their IT needs.

This decision comes with its own set of challenges – challenges we want to help you avoid.

At Intelligent Technical Solutions (ITS), we specialize in providing tailored IT solutions for local government entities. Our stance as an MSP helps us understand your unique needs and the constraints of the public sector, and we want to help you make informed decisions about your IT strategy.

In this article, we'll explore the problems and challenges associated with hiring an MSP for local government entities and provide solutions to help navigate these issues.

By the end of this article, you'll have a clearer understanding of the challenges involved in hiring an MSP and how to address them effectively. 

1. Budget constraints 

One of the primary challenges local governments face is managing their budgets. Because local government agencies typically determine their budgets on an annual or bi-annual basis, partnering with an MSP can get tricky.

You can’t spend more than what you have – and choosing the wrong MSP will blow your budget out of the water.

MSPs generally charge $130 - $200/user per month, with an extra cost for specialized projects. Each MSP will have a different price range, and you’ll have to carefully look at the inclusions and exclusions in each managed IT plan.

Luckily, MSP’s consistent monthly billing helps provide an accurate estimate for your IT costs. If you have security needs or specialized projects, the MSP will be able to give a price range quickly so you can prepare for the bill.  

Solutions: 

How do you overcome budgeting problems and get the most value out of your managed IT partnership?

First, make sure to request for a detailed cost analysis. Ask about onboarding fees, ongoing service fees, and any other potential hidden costs. Keep the list of services you need in mind and compare them to the plans an MSP will propose.

Next, look for MSPs that offer flexible pricing models tailored to the specific needs of local governments. Look through their client list and check if they serve other LGU’s.

READ: A Complete Guide to Planning Your Managed IT Budget 

2. Cybersecurity concerns 

Cybersecurity is a top priority for local government entities, given the sensitive nature of the data you handle. Depending on who you serve and the data you collect – such as police or government information – you may be limited to giving access to US-based citizens.

Which, if you’re partnering with an MSP, can be a problem. Many MSPs utilize offshore contractors since the different time zones help make 24/7 customer service possible.

MSPs also partner with multiple vendors to provide their services which expands the risk of third-party hacking. You’ll have to carefully vet an MSP to ensure they vet their vendors properly.  

Solutions 

To overcome possible security challenges with an MSP, you should directly ask about their compliance certifications, and their ability to separate access based on your security needs. Good MSPs will have multiple certified technicians and a track record of maintaining regulatory compliance with other companies.

Also, insist on frequent security audits, 24/7 cybersecurity monitoring, and cyber insurance coverage.  

3. Compliance issues 

As a local government, you’ll have to adhere to various government regulations. MSPs should be capable of maintaining compliance for you, but a smaller MSP may be overwhelmed by all your regulatory needs.

Some MSPs might also have no experience helping the public sector, which might cause them to overlook obscure guidelines.  

Solutions 

Luckily, compliance issues are easily resolved by choosing the right MSP with regulatory compliance experience. Check if they serve other local governments – if they do, you’re on the right track to find the right managed IT partnership.

The right MSP will also tell you clearly what they can and can’t cover, plus their current security training and awareness programs to keep your team informed about compliance requirements. 

4. Vendor lock-in 

Managed IT is a long-term partnership between you and the MSP. If you choose the wrong MSP, you’re stuck in a six-month, year-long, or even a two-year contract.

Plus, relying too heavily on a single IT provider can create dependencies that are difficult to break if their service levels decline or if the MSP is no longer a good fit. 

Solutions 

Long-term partnerships are both a boon and a bane, since they allow an MSP to dig-deep into your IT needs and provide more effective solutions.

To avoid the downsides of a long-term contract, give yourself a clear exit strategy in case the partnership doesn’t work out. Include terms in your contract for transitioning services to other providers and conduct regular performance reviews to assess the MSP's service levels and ensure they meet your needs. 

5. Service quality 

Not all MSPs offer the same level of service, and it can be challenging to find one that meets the specific needs of a local government – without first getting stuck in a contract.

Some companies will put their best foot forward and promise you anything and everything to get you to sign with them. Be wary of MSPs that guarantee too much at dirt-cheap price: the adage “If it’s too good to be true, it’s not true,” applies.  

Solutions 

To accurately evaluate the service quality of an MSP, do thorough research into their other clients. Read about their client’s experience, check any case studies, and ask if they’re willing to provide a quick trial.

You should also see if they’re honest about the downsides of their services, and can tell you, their limits. Building trust in the early stages through an honest evaluation of their capabilities is a good sign they can be trusted with your technology.

Want to learn more about hiring an MSP?

Hiring an MSP for local government organizations isn’t easy, but by understanding the previous challenges and implementing the solutions we shared, you can make informed decisions and successfully find the right partner for you.

At Intelligent Technical Solutions (ITS), we have extensive experience in providing IT solutions for local government entities. Our expertise, combined with a deep understanding of the public sector's unique needs, makes us the ideal partner to help you achieve your IT goals.

If you're considering getting managed IT, read more about the service in the guide “Everything You Need to Know About Managed IT.” It’ll provide the information you need to succeed with managed IT. 

You can also check out these other free resources to help you on your managed IT journey:

• [TOOL] IT Needs Analyzer 
• How Much Does Managed IT Cost? (5 Price Factors) [Updated] 
• [CASE STUDY] How Managed IT Helped a Pasadena Non-Profit Expand and Serve More Communities