The 3 Real Reasons Companies Fire Their MSP (And How to Spot Them Early)

If you’ve ever been frustrated with your IT provider, you’re not alone. Many businesses quietly endure poor service from their Managed Service Provider (MSP) because firing them feels complicated, risky, or just plain exhausting. But here’s the truth: companies almost never fire an MSP for the reasons they say.

When you strip away the excuses, there are really only three underlying causes—and if you can spot them early, you can either fix the relationship or move on before real damage is done.


Reason #1: The MSP Lost Your Trust

The MSP-client relationship requires an extraordinary level of trust. Your provider has deep, privileged access to your systems, data, and infrastructure—in most cases, more than your own employees.

When trust breaks down, it’s rarely because of a single event. More often, it’s a pattern of behaviors that create doubt about one or more of these areas:

  • Ethics — Do they put your interests ahead of their own, or are their recommendations self-serving?
  • Ability — Are they competent, or do you find yourself cleaning up after their mistakes?
  • Security — Are they safeguarding your systems, or introducing new vulnerabilities?

Spot it early:
Look for subtle red flags: cagey answers to security questions, unexplained charges, or slow responses when you ask about critical incidents. If you feel like you’re getting “just enough” information to keep you quiet, your trust may already be eroding.


Reason #2: They Aren’t Meeting Expectations

Performance issues are one of the most common frustrations in the MSP world. This isn’t about perfection; it’s about consistency.

If you’ve noticed:

  • Slower response times than before
  • More frequent recurring issues
  • Delays in resolving tickets or completing projects

…then you’re seeing signs of a provider whose service delivery is slipping.

Sometimes, these dips are temporary. Maybe they’re onboarding a big client or dealing with a staff shortage. But if they can’t identify the root cause, don’t offer a clear plan to fix it, or fail to follow through, you have a bigger problem on your hands.

Spot it early:
Ask for reporting on ticket resolution times, open issues, and project timelines. A reputable MSP should be able to produce this data easily and explain any outliers.


Reason #3: You’ve Outgrown Them

This isn’t personal. Sometimes a provider just isn’t equipped to support your next stage of growth.

Maybe your business now operates multiple shifts and needs 24/7 support. Maybe your compliance requirements have evolved. Or maybe your tech environment has become too complex for their skill set.

A capable MSP will recognize this and either scale with you or help transition you to a provider who can handle your needs. Unfortunately, some try to “make do”, which leaves you under-protected and under-served.

Spot it early:
Look for gaps in capability. Are they offering solutions to match your growing needs, or are you the one initiating every conversation about new tools, security upgrades, and strategic IT changes?


What’s Not the Real Reason

Here’s the curveball: Price is almost never the true reason for ending an MSP relationship.

If you leave your provider for a “cheaper” one, odds are you’ll end up paying more—in money, risk, and downtime.


How to Take Action

If you’re seeing any of these three signs—loss of trust, declining performance, or outgrowing your provider—the first step isn’t necessarily firing them.

  • Document your concerns with specific examples.
  • Schedule a “realignment meeting” to clarify expectations and see if the relationship can be salvaged.
  • Set measurable goals and timelines for improvement.

If they meet those goals, you may end up with a stronger partnership than before. If not, you’ll have the clarity (and the paper trail) to move on confidently.


Bottom line:
Don’t let frustration fester. The sooner you identify and address the real reasons for dissatisfaction, the better chance you have of protecting your business — whether that means fixing the relationship or finding a partner who’s truly aligned with your goals.


Need help evaluating your MSP?
We’ve developed a comprehensive checklist to assess your provider’s performance and security posture. Download the book to learn more.


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