Avoiding the Pitfalls of Managed IT Services: How to Choose the Right Partner for Success

A managed IT services provider can be a true strategic asset — but only if chosen wisely. While outsourcing is often seen as a path to efficiency and agility, the real challenge lies in selecting the right partner. And that’s usually when things go wrong. 

Unclear SLAs, hidden costs, and misaligned expectations can quietly erode the value of IT outsourcing, turning a promising partnership into a costly setback. That’s why a structured, informed approach to vendor selection is essential.

Read the article to find out:

• What are the key challenges of collaborating with IT outsourcing companies
• How to avoid common pitfalls and spot red flags during the vendor evaluation process
• What to look for when choosing a managed IT services provider
• How to build a successful long-term partnership

5 Common Challenges of Managed IT Services

While managed IT services offer clear benefits, they also come with challenges that can stand in the way of building a successful partnership with the provider. The IDC Research sponsored by Comarch (Feb 2025) highlights several issues that often arise during outsourcing initiatives—and that are easy to overlook without the right preparation.

1. Data Security and Compliance Risks

Data security, privacy, and regulatory compliance are the main concerns when working with managed IT service providers. According to IDC, 37% of businesses identify this as a significant challenge. Partnering with an external provider means entrusting them with access to a large volume of sensitive data—data that, if compromised, could lead to serious consequences for the organization, both financial and reputational.

2. Hidden or Unexpected Costs

No one likes surprises when it comes to pricing. Yet, the IDC research shows that 29% of organizations struggle with hidden fees or unclear pricing structures. 

These costs often appear as charges for extra services, higher-than-expected usage, or vague contract terms. Surprises like these not only stretch the budget—they also damage trust and make collaboration with the provider more difficult.

3. Integration and Compatibility Issues

Even the best service provider won’t deliver results if they can’t integrate smoothly into your existing workflows. IDC reports that for 27% of organizations, integration and communication barriers present a real challenge. Differences in time zones, language, and collaboration tools may seem minor at first—but in practice, they can lead to delays, disrupt daily operations, and create tension between internal teams and the provider. Without operational and cultural fit, efficiency and service quality are difficult to maintain.

4. Poor SLA Adherence and Quality Control

Clear service level agreements (SLAs) are critical for setting expectations—but they only deliver value when consistently enforced. Some organizations face issues with vague performance metrics, a lack of transparency, or limited accountability when problems arise. If SLA breaches remain unresolved, they can lead to service disruptions, unmet expectations, and long-term dissatisfaction.

5. Lack of Flexibility and Vendor Lock-In

Outsourcing should support agility—not limit it. Yet some providers offer rigid service models or proprietary systems that are difficult to adapt or scale. Others may impose long-term contracts with limited exit options, making it hard to pivot when business needs change. Without flexibility built into the partnership, organizations risk becoming locked into outdated services or unfavorable terms.

Strategy: The Foundation of Successful Partnership

Avoiding common pitfalls starts with getting the basics right. That’s why you should define your needs before you begin evaluating providers. Successful IT outsourcing depends on knowing what to outsource and why. If you’re struggling to define your needs early on, it’s worth seeking support from an experienced partner. A vague or incomplete strategy at this stage often leads to poor vendor fit, misaligned expectations, and unmet objectives later on.

Clarify the Scope of IT Outsourcing

• Identify Core vs. Non-Core IT Functions: Analyze your organization’s IT processes and services to identify core and non-core IT activities. Core systems may warrant tighter control, while routine tasks, such as service desk support and infrastructure management, can be offloaded safely.
• Assess Internal Capabilities: Conduct a comprehensive audit of your IT team’s skills, bandwidth, and workload. Identify areas where your in-house resources may fall short—whether it’s a lack of 24/7 support or limited expertise in certain technology. This will help you determine potential opportunities for outsourcing.
• Set SMART Goals: Be clear about what you want to achieve with outsourcing. Whether your focus is reducing response time or improving scalability, your goals should be specific, measurable, relevant, and time-bound. These will serve as a benchmark for selecting a vendor and evaluating performance post-implementation.

Pick the Right Pricing Model

Pricing can make or break the outsourcing experience. The IDC research shows that 29% of companies cite hidden or unclear costs as a major challenge. That’s why you should choose a model that aligns with your business needs and expectations. Common pricing models include:

• Fixed Price: Ideal for clearly defined scopes. It offers cost predictability but less flexibility if your needs shift midstream.
• Per Serviced Unit: Charges are based on the number of users, servers, or support tickets. This model is scalable, but costs can spike unexpectedly if usage increases.
• Time & Materials: Suitable for complex or ongoing projects. It is highly flexible but requires active oversight and precise scope control to avoid cost overruns.

Choose the Outsourcing Model

Last but not least, you should define which delivery model best supports your operational needs:

• Body Leasing: Temporary hiring of external IT specialists to work within a team to support specific projects or fill internal skill gaps.
• Co-Sourcing: Internal and external teams work together under shared responsibility.
• Out-Tasking: Outsourcing specific tasks or processes rather than entire IT functions.
• Selectively Managed IT Services: Outsourcing only specific IT functions, such as service desk or infrastructure support.
• IT Department as a Service (ITDaaS): Handing complete responsibility for IT operations to the provider.
• Service Integration and Management (SIAM): Managing multiple providers under a unified framework.

To further support your outsourcing strategy, you can check out our Ultimate Guide to Successful IT Outsourcing Implementation, which offers practical tools, model comparisons, and expert insights to guide your decision-making.

What to Look for When Choosing a Managed IT Services Provider

Defining the strategy is half the success. The real challenge lies in choosing a provider who can deliver on that strategy. Having a structured, criteria-based approach helps avoid costly mismatches. Just remember—it is not about finding the biggest name—it’s about finding the best fit.

Key Partner Selection Criteria

According to IDC, 86% of companies consider clear SLAs essential when choosing an outsourcing partner. High-level technical skills (84%) and industry experience (75%) also rank high. But a successful partnership requires more than just technical fit. Here are some of the key criteria you should consider when selecting a managed IT services provider:

• Clear Service Level Agreements: A strong SLA serves as a framework for accountability. It should clearly define the expected level of service quality, performance, and availability—all backed by clearly measurable KPIs. Look for providers who tailor SLAs to your business priorities and are transparent about how performance is tracked and reported.
• Technical Expertise: Ensure the provider's capabilities and technology stack align with your needs and infrastructure—not only for now but also for the future.
• Industry Experience: Familiarity with your sector and a deep understanding of industry-specific challenges can reduce onboarding time and lead to smoother collaboration. Be sure to review the vendor’s portfolio and look for one with a proven track record in your industry.
• Client References: Don’t just rely on what the vendor says—speak with existing or past clients to understand their experience and get their opinions.
• Support for Hybrid IT Environments: If you consider server infrastructure outsourcing, and are operating a mix of on-premises and cloud-based systems, choose a partner capable of efficiently integrating and managing hybrid setups.
• Flexible Pricing and Tailored Services: Avoid rigid contracts that don’t reflect how your business actually operates. Look for partners who offer adaptable service models and pricing that scale with your needs.
• Fit Over Size: Bigger doesn’t always mean better. Large providers can offer scale, but medium-sized firms can bring a more personal touch and a robust range of skills. On the other hand, boutique companies may possess expertise but lack the capacity to deliver services on the necessary scale. The best choice depends on your priorities and individual needs.

• Cultural and Geographic Alignment: Language, time zone, and working style differences can affect daily collaboration. Ensure your provider’s team can work effectively with yours—especially if you rely on them for key operational support.
• Innovation Mindset and Future Readiness: The best partners don’t just maintain your IT—they help you stay competitive. Look for providers that invest in R&D, embed emerging technologies like AI and automation, and bring ideas to the table.

Red Flags Checklist: Spotting Potential Issues Early

Before committing to a provider, take a moment to revisit these common red flags. If you spot more than one during the evaluation process, it may be worth taking a step back:

🚩 Vaguely defined SLAs

🚩 Unclear pricing structure or reluctance to provide a detailed cost breakdown

🚩 Minimal or generic client references, particularly lacking industry-specific examples

🚩 Slow or inconsistent communication during the proposal or negotiation phase

🚩 Rigid service models with little flexibility or room for customization

🚩Lack of transparency around security practices and compliance

A well-structured evaluation process—grounded in clear goals and selection criteria—can help you avoid these pitfalls and ensure your provider is a real match.

Building a True Partnership—Not Just a Contract

The view of managed IT services shifted from transactional to strategic—and not without reason. Robust IT capabilities are becoming increasingly important due to ongoing digital transformation initiatives. Consequently, many organizations view the engagement of managed IT services as a crucial step toward becoming future-proof.

That’s why organizations should build strong, strategic partnerships that are based on shared goals, continuous alignment, and mutual accountability. Choosing a provider solely on price, scale, or brand recognition misses the point. Real long-term value comes from alignment: technical, operational, and cultural.

At Comarch, we believe every partnership should be built on trust, transparency, and a deep understanding of your business. Download the full IDC research to explore what else defines effective IT outsourcing and get expert guidance on choosing a provider that aligns with your long-term goals.

Key Takeaways

• Poorly defined or unenforced SLAs are a leading cause of failed partnerships—86% of companies prioritize clear SLAs when choosing a managed IT services provider.
• 29% of organizations face hidden or unexpected costs, underscoring the need for transparent pricing and flexible service models.
• Security and compliance are top concerns for 37% of companies, highlighting the importance of proven safeguards and regulatory alignment.
• A well-thought-out strategy is key to outsourcing success—defining scope, goals, and internal gaps helps avoid costly mismatches.