The Top IT Outsourcing Concerns Manufacturing Companies Have When Hiring An MSP

The Top IT Outsourcing Concerns Manufacturing Companies Have When Hiring An MSP: Key Challenges and Solutions for 2025

Manufacturing companies increasingly turn to Managed Service Providers (MSPs) to handle IT needs, but this transition isn’t without concerns. When considering outsourcing IT services, manufacturing businesses often worry about losing direct control over critical systems that keep production lines running. Understanding these concerns is essential to creating a successful partnership that enhances productivity while reducing costs and security risks.

While MSPs can offer specialized expertise that may not be available in-house, manufacturing companies often hesitate due to uncertainties about vendor reliability and communication challenges. Your production environment requires consistent uptime and immediate support when issues arise, making selecting an IT service provider particularly crucial for your operations. Mid-market businesses especially need to evaluate whether an MSP can provide the security compliance and technical expertise necessary for their specific manufacturing processes.

Whether maintaining an in-house IT team or partnering with an MSP involves weighing strategic and operational factors unique to manufacturing environments. Your concerns about implementation timelines, industry-specific knowledge, and integration with existing systems are valid considerations that require careful assessment before making this significant operational change.

Key Takeaways

• Evaluating an MSP’s manufacturing industry expertise ensures they can properly support your specialized technical requirements and production environments.
• Clear communication protocols and response time guarantees help prevent costly downtime in your manufacturing operations.
• A strategic partnership approach rather than a simple vendor relationship maximizes your return on investment when outsourcing IT services.

Overview of IT Outsourcing in Manufacturing

Manufacturing companies increasingly recognize the strategic value of outsourcing IT operations to specialized service providers. This shift allows manufacturers to focus on their core production activities while leveraging external expertise for technical infrastructure and support.

Defining Managed Service Providers (MSPs)

A Managed Service Provider (MSP) is a specialized technology partner that remotely manages and delivers a company’s IT services and infrastructure. Unlike traditional IT outsourcing that addresses issues reactively, MSPs provide proactive IT management with ongoing monitoring and maintenance.

For manufacturing firms, MSPs are virtual IT departments handling everything from network security to cloud services. They typically operate on subscription-based models with service level agreements (SLAs) that outline performance expectations and response times.

The key distinction between standard IT outsourcing and MSPs is the comprehensive nature of the relationship. While traditional outsourcing might address specific one-time needs, MSPs develop long-term partnerships focused on optimal IT performance and strategic technological advancement for your manufacturing operation.

Types of IT Services Offered

MSPs provide manufacturing companies with diverse specialized services tailored to production environments. These include:

Infrastructure Management:

• Network monitoring and maintenance
• Server administration and virtualization
• Cloud computing solutions and migration
• Storage and backup systems

Security Services:

• Cybersecurity monitoring and threat detection
• Access control management
• Compliance verification and reporting
• Security audits and vulnerability assessments

Operational Support:

• Help desk and technical support for employees
• Equipment procurement and lifecycle management
• Software licensing and updates
• Process optimization technologies

Many MSPs now offer specialized manufacturing technology services such as industrial IoT implementation, production floor automation support, and integration between operational technology (OT) and information technology (IT) systems.

Rise of IT Outsourcing in the Manufacturing Sector

Manufacturing companies have embraced IT outsourcing at an accelerating pace over the last decade. This growth stems from several industry-specific factors that make MSP partnerships particularly valuable in production environments.

The increasing complexity of manufacturing technology ecosystems—combining traditional IT with industrial control systems, IoT sensors, and automation platforms—requires specialized expertise beyond what many in-house teams can maintain. MSPs offer access to this expertise without the significant expense of building it internally.

Cost efficiency remains a primary driver for manufacturing IT outsourcing. By partnering with an MSP, you can convert unpredictable capital expenditures into consistent operational expenses while avoiding costly recruitment and training processes.

The manufacturing industry’s heightened security concerns also fuel MSP adoption. With intellectual property, operational data, and increasingly connected production systems to protect, manufacturers benefit from dedicated security professionals monitoring their networks around the clock.

Key Concerns When Hiring an MSP

Manufacturing companies face unique challenges when outsourcing their IT operations to Managed Service Providers. Understanding these potential pain points before signing any contracts can help manufacturing executives make more informed decisions about their technology partnerships.

Ensuring Quality of Service

When outsourcing critical IT functions, quality of service must be a top priority. You should investigate how an MSP handles response times and service level agreements (SLAs) for different severity issues.

Ask potential providers about their average resolution times and how they prioritize manufacturing-specific systems that directly impact your production line. Request clear documentation of their escalation procedures for critical incidents.

Look for MSPs with experience in your manufacturing vertical, as they’ll better understand your specialized equipment and software needs. Don’t hesitate to request case studies from similar manufacturing clients.

Establish key performance indicators (KPIs) to measure service quality objectively, including:

• System uptime percentages
• Mean time to resolution
• First-call resolution rates
• Customer satisfaction scores

Cost-Effectiveness and ROI

Understanding the complete financial picture is essential when evaluating MSP partnerships. You must review contracts carefully to identify hidden costs beyond the basic service agreement.

Most MSPs offer tiered pricing models based on service levels and number of devices. Ensure you select a package aligned with your manufacturing requirements without paying for unnecessary services.

Calculate your expected ROI by comparing the MSP’s fees against your current IT expenditures, factoring in:

• Reduced downtime costs
• Eliminated recruitment and training expenses
• Avoided hardware/software purchases
• Increased production efficiency through better IT systems

Request transparent billing practices and regular cost reviews. Some providers offer predictable fixed monthly costs, which can help with budgeting for manufacturing operations where cash flow consistency is valuable.

Integrating with Existing Systems

Manufacturing environments often utilize specialized equipment and legacy systems that require careful integration. Your MSP should demonstrate experience connecting modern IT infrastructure with industrial control systems, IoT devices, and manufacturing execution systems.

Ask how they’ll handle your current tech stack without disrupting production. The best MSPs will thoroughly assess your existing infrastructure before proposing any changes.

Integration concerns to discuss include:

• Compatibility with proprietary manufacturing software
• Managing OT (Operational Technology) and IT convergence
• Data exchange between business systems and production floor
• Support for specialized hardware drivers and protocols

Request information about their change management procedures. A phased implementation approach is typically safer for manufacturing environments where downtime directly impacts production capacity and revenue.

Compliance and Security Risks

Manufacturing companies face industry-specific compliance requirements and security concerns that your MSP must address. You need assurance they can protect your intellectual property and operational technology systems.

Verify their qualifications and certifications relevant to manufacturing, such as ISO 27001, NIST frameworks, or industry-specific standards like CMMC for defense contractors.

Ask about their approach to:

• Network segmentation between IT and OT systems
• Endpoint protection for industrial computers
• Secure remote access protocols for equipment maintenance
• Backup and disaster recovery specific to manufacturing data

Your MSP should understand regulations affecting your specific manufacturing sector, whether it’s medical devices (FDA), automotive (IATF), or food production (FSMA). They should help you maintain compliance while implementing security measures that don’t impede production workflows.

Scalability and Flexibility

Your manufacturing operation’s IT needs will evolve alongside your business growth and changing market demands. The MSP you select should offer scalable solutions that can adapt as your requirements change.

Ask potential providers how they accommodate:

• Seasonal production fluctuations
• New facility openings
• Equipment additions or production line expansions
• Mergers and acquisitions

Evaluate their capability to quickly provision new resources or scale back services as needed. This flexibility is particularly important in manufacturing where production demands can shift rapidly.

Inquire about contract terms and notice periods for service adjustments. The best MSP partnerships allow you to modify service levels without excessive penalties or lengthy commitment periods, giving you the agility required in modern manufacturing environments.

Effect on In-House IT Staff

If you maintain an internal IT team, understanding how they’ll work alongside an MSP is crucial. The relationship should be collaborative rather than competitive, with clearly defined responsibilities for both parties.

Consider asking MSPs how they typically interact with existing IT personnel. Some manufacturers prefer emergency-only support, where in-house staff handles day-to-day operations while the MSP provides after-hours coverage.

Your internal team might focus on:

• Manufacturing-specific applications and equipment
• Strategic IT initiatives aligned with production goals
• User training and support for shop floor staff

Meanwhile, the MSP could manage:

• Infrastructure maintenance and monitoring
• Cybersecurity and compliance
• Help desk for routine issues

This division of responsibilities should leverage each group’s strengths while providing professional development opportunities for your internal team.

Assessing Technical Expertise

When selecting an MSP for your manufacturing operations, evaluating their technical capabilities is crucial to ensure they can handle your specific IT requirements. Manufacturing environments present unique challenges that require specialized knowledge and cutting-edge solutions.

Domain Knowledge and Experience

Manufacturing IT environments differ significantly from standard office setups. Your MSP should demonstrate experience with manufacturing-specific systems like MES (Manufacturing Execution Systems), ERP integration, and industrial control systems.

Look for providers with a track record in your specific manufacturing niche. An MSP with experience in automotive manufacturing may not understand the nuances of pharmaceutical production.

Ask potential MSPs for case studies or references from similar manufacturing clients. Their ability to speak knowledgeably about industry-specific challenges like OT/IT convergence, production floor connectivity, and regulatory compliance indicates authentic expertise.

Be wary of MSPs demonstrating limited industry knowledge, which can lead to inappropriate solutions and costly downtime.

Latest Technological Advancements

An effective MSP must stay current with emerging technologies relevant to manufacturing operations. Assess their familiarity with:

• Industry 4.0 technologies: IoT sensors, predictive maintenance, digital twins
• Edge computing solutions for real-time processing
• Cybersecurity measures specific to manufacturing environments
• Data analytics capabilities for production optimization

Ask how they’ve implemented these technologies in manufacturing contexts. Quality MSPs will explain how specific advancements can address your operational challenges rather than just promoting the latest trends.

During evaluation meetings, note whether they discuss technology regarding business outcomes and ROI rather than technical specifications alone. This indicates their understanding of how technology serves manufacturing objectives.

Vendor Certifications and Partnerships

Strong vendor relationships signal an MSP’s ability to provide top-tier solutions and support. When hiring an MSP, assess their partnerships with key manufacturing technology vendors.

Look for:

• Technical certifications from major platforms (Microsoft, Cisco, VMware)
• Specialized manufacturing software partnerships (Siemens, Rockwell, SAP)
• Hardware vendor relationships relevant to your production environment
• Training commitments that ensure their team stays current

These partnerships often mean better pricing, faster support escalation, and earlier access to new solutions. Ask about their certification maintenance program—you want a team that continuously updates their skills.

Request documentation of their team’s certification levels and verify that the certified professionals will work on your account. Some MSPs showcase high-level certifications but assign less qualified technicians to daily support.

Management and Communication

Effective partnership with an MSP requires clear communication channels and well-defined management processes. Manufacturing companies often find their operational success heavily dependent on how well these relationships are structured and maintained.

Project Coordination and Alignment

Manufacturing companies frequently worry about how projects will be coordinated between internal teams and the MSP when outsourcing IT services. You need assurance that the MSP will align their processes with your production schedules and operational workflows. This is especially critical when IT changes might impact manufacturing equipment or production lines.

Outsourcing IT support to an MSP requires establishing clear responsibilities and decision-making authorities. Consider implementing:

• Regular coordination meetings with fixed agendas focusing on current projects and upcoming needs
• Designated points of contact from both your company and the MSP
• Shared project management tools that provide visibility into progress and timelines
• Change management protocols that consider manufacturing-specific requirements

Creating service level agreements (SLAs) that reflect your manufacturing priorities helps prevent misalignment. These should include response times that account for the criticality of different systems to your operations.

Transparent Reporting and Feedback

Manufacturing companies need visibility into IT performance metrics and service quality. You want to know exactly what you’re getting for your investment and how it impacts your operations. This transparency concern stems from the loss of direct control that comes with outsourcing.

Effective MSPs provide:

Detailed monthly reports covering:

• System availability percentages
• Incident response times and resolution metrics
• Project progress against established timelines
• Security posture assessments

Regular business reviews should evaluate the partnership’s effectiveness and identify improvement opportunities. These reviews should include both operational metrics and financial performance assessments.

You should expect proactive communication about potential issues rather than reactive problem reporting. This forward-looking approach helps prevent manufacturing disruptions before they occur.

Cultural and Language Considerations

Manufacturing environments have unique operational cultures that may differ significantly from IT service providers. Your concern about whether an MSP can understand manufacturing-specific needs is valid.

When evaluating potential partners, look for MSPs with:

• Previous manufacturing industry experience and references from similar companies
• Technical staff familiar with manufacturing systems like MES, SCADA, or industrial control systems
• Compatibility with your company’s communication style and work ethic

Language barriers can complicate technical support interactions, especially in urgent situations. Ensure the MSP provides support in your preferred language and understands industry-specific terminology.

Time zone differences may impact support availability and response times. MSP services should align with your production schedule, which may include 24/7 operations or early shift starts common in manufacturing.

Vendor Reliability and Support

Manufacturing companies need consistent, reliable IT support that minimizes downtime and ensures continuity of operations. When trusting critical systems to an external provider, their performance directly impacts your production capabilities and bottom line.

Service Availability and Uptime Guarantees

When evaluating an MSP for your manufacturing operations, pay close attention to their Service Level Agreements (SLAs) regarding uptime guarantees. Most reputable providers offer 99.9% uptime commitments, but the specifics matter tremendously for production environments.

Ask potential MSPs these critical questions:

• What are their specific uptime percentages for different services?
• How do they measure and report on uptime?
• What compensation do they provide when SLAs aren’t met?

Reliable technology is non-negotiable in manufacturing, where minutes of downtime can cost thousands. Request documented proof of their historical performance and references from similar manufacturing clients.

The best MSPs provide real-time monitoring dashboards that allow you to verify system status independently. This transparency builds trust and gives you visibility into the services you’re paying for.

Customer Service and Technical Support

Manufacturing environments often operate beyond standard business hours, making 24/7 support capabilities essential when selecting an MSP. Your operations can’t wait until morning when a critical system fails during night shift production.

Look for providers offering 24/7 IT troubleshooting with guaranteed response times based on issue severity. Response time guarantees should be explicitly stated in writing, not just verbally promised.

Evaluate their support channels:

• Phone support with live technicians
• Email and ticketing systems
• Emergency escalation protocols
• On-site support capabilities

The quality of technical staff matters as much as availability. Ask about their technicians’ certifications, manufacturing industry experience, and typical tenure with the company. Staff turnover at your MSP creates a discontinuity in your support experience.

Request clarity on which issues are included in your standard agreement versus what triggers additional charges. This prevents surprise bills when you need help most.

Disaster Recovery and Business Continuity

Manufacturing companies face significant revenue losses during system outages, making robust disaster recovery capabilities a critical factor when selecting an MSP. Your provider should offer comprehensive planning for data protection and systems restoration.

A quality MSP will work with you to develop:

• Regular backup schedules with verification testing
• Recovery Time Objectives (RTOs) aligned with your production needs
• Alternative operation procedures during outages
• Regular disaster simulation exercises

Not all MSPs deliver equal disaster recovery capabilities. Request documentation about their recovery infrastructure, including redundant data centers and backup power systems.

Your provider should demonstrate maintaining critical manufacturing systems during various disaster scenarios. This includes plans for natural disasters and cybersecurity incidents, with clear communication protocols established in advance.

Review their track record of handling emergencies for other clients. The best MSPs view disaster readiness as ongoing preparation rather than a static plan, continually updating protocols as your systems evolve.

Implementing Strategic Partnership

Manufacturing companies need a clear framework for transforming vendor relationships into strategic partnerships. Effective partnerships align technology initiatives with business goals while establishing continuous evaluation and improvement mechanisms.

Aligning IT Goals with Business Objectives

Manufacturing companies must ensure that IT outsourcing supports core business objectives. When selecting an MSP, prioritize partners who understand your industry-specific challenges.

Top-performing companies are 4.2 times more likely to use managed services partnerships for strategic advantage. To achieve this alignment:

• Define clear KPIs that connect IT initiatives to manufacturing outcomes
• Create shared roadmaps that synchronize technology implementation with production cycles
• Establish regular strategy sessions where both your team and the MSP review business objectives

Involve operational leaders in IT planning to ensure technology solutions address shop floor realities. Effective MSPs should proactively suggest improvements rather than simply respond to requests.

Building Trust and Long-Term Relationships

Trust forms the foundation of successful MSP partnerships in manufacturing. Begin by implementing transparent communication channels and clearly defined escalation procedures.

Key trust-building practices:

• Regular face-to-face meetings (even in remote arrangements)
• Documented response times for various severity levels
• Shared access to performance metrics and monitoring tools

Partnering with an MSP to support your existing IT team creates a collaborative environment where knowledge transfer becomes natural.

Consider implementing phased implementation of services rather than complete overnight transitions. This approach allows manufacturing operations to continue uninterrupted while building confidence in the partnership.

Assessing and Reviewing MSP Performance

Systematic evaluation ensures your MSP partnership delivers continued value. Create a performance review framework that moves beyond basic uptime metrics to assess business impact.

Effective assessment should include:

Mid-market companies boost efficiency by 15-20% through technology managed services when properly evaluated and managed. Document both successes and failures during review sessions.

Be willing to adjust service level agreements as your manufacturing needs evolve. The most productive MSP relationships allow flexibility while maintaining accountability through clearly defined metrics.

Conclusion

Choosing to outsource IT services for your manufacturing company involves weighing several important factors. By understanding these common concerns and addressing them proactively, you can make a more informed decision about partnering with an MSP.

When properly vetted, an MSP can provide significant advantages including cost savings of 15-20% and improved operational efficiency. Your manufacturing operations require specialized IT support that understands your industry needs.

Communication is key to a successful relationship with your MSP. Establish clear expectations, regular check-ins, and metrics for success from the beginning of your partnership.

Remember that not all MSPs are created equal. Evaluate potential providers based on their experience with manufacturing clients, security protocols, and scalability options.

The right MSP partnership lets you focus on your core manufacturing competencies while accessing specialized IT expertise. This relationship should evolve as your business grows and technology needs change.

Before signing any contracts, thoroughly understand the service level agreements, security protocols, and escalation procedures. These details will protect your operations and provide clarity during any potential challenges.

With proper planning and clear communication, outsourcing your IT to an MSP can transform your manufacturing technology from a cost center to a strategic advantage.