Lots of our fellow New York and New Jersey managed IT services providers (MSP) these days are emphasizing long-term client relationships. That’s essential to the business model, because instead of getting paid all at once for the costs of onboarding and supporting a new client, they’re spreading that cost out over the length of a contract. Long-term IT service provider-client relationships really are a win-win for both sides, because they also make a business’ IT costs predictable while ensuring their provider has a stake in their success.
Making all that work requires that the solution provider be financially sound. It’s risky to tie up the care and feeding of your entire IT infrastructure with an IT company that may not make the distance.
As part of their due diligence, smart companies vet critical partners such as managed IT services providers to confirm that they have the operational and financial capabilities to grow and maintain a healthy business.
But that can be tough to do. Most managed services providers are closely held, with revenues under $10 million and no public filings to check out. Clients of Dun & Bradstreet may be able to access some financial info, but for the most part, potential MSP clients need to use other proxies to make their assessment of the financial health of an IT services provider. These include:
Daniel Haurey Jr. is the president and founder of managed IT services provider Exigent Technologies, which he founded in 1997. Under his leadership, the MSP has earned accolades ranging from Channel Futures MSP 501 to being named SonicWall’s 2024 MSP Growth Partner of the Year. Dan is a true entrepreneur, dedicated to growing, investing in, and mentoring small businesses. You can find him on LinkedIn, where he regularly posts about technology, business, leadership, and community.