Top 8 MSP Challenges Explained by a Managed IT Services Provider in Pasadena

As your business grows, so does the pressure on your IT systems. That’s why more companies are turning to managed service providers (MSPs) for help managing infrastructure, securing data, and supporting users. In fact, 88% of small and mid-sized enterprises already use or plan to use MSPs for IT infrastructure management, according to Forbes.

But high demand hasn’t always translated into high performance. Many businesses discover that their MSP struggles to meet expectations—whether it’s slow response times, unclear communication, or weak cybersecurity practices.

As Armen Avanessian, Partner at CentraLink, says, “The rise in hybrid environments and rapid tech change has exposed the limitations of legacy MSP models.”

In today's article, the most trusted MSP in Pasadena explores the most common managed IT services challenges — including what to watch for, how to protect your operations, and what to expect from a provider.

The Hidden Problems: Tackling the Challenges in Managed IT Services

1. Keeping Up with Evolving Threats

Cybersecurity threats evolve faster than most providers can adapt. From ransomware-as-a-service to zero-day exploits, MSPs must constantly update their tools, practices, and staff knowledge to stay ahead of attackers.

Unlike internal IT teams that secure a single environment, MSPs manage dozens or even hundreds—each with different vulnerabilities. A breach at one client could also expose gaps in the provider’s overall systems, causing reputational and legal damage.

Staying current requires significant investment in threat intelligence platforms, staff certifications, and 24/7 security operations. For smaller MSPs, this is a major challenge.

2. Talent Shortage and Skills Gaps

The demand for experienced IT professionals far outweighs the supply. MSPs need highly skilled technicians, cybersecurity experts, and engineers to deliver quality service—but these professionals are increasingly hard to find, expensive to hire, and even harder to retain.

This talent shortage creates a bottleneck, especially as client expectations continue to grow. According to CloudSecureTech, 83% of companies report their technologies aren’t meeting evolving needs, which puts added pressure on MSPs to deliver more advanced and responsive support.

With limited staff, providers may struggle to keep up with ticket volumes, proactive maintenance, or strategic initiatives. In some cases, they’re forced to assign junior techs to complex issues or outsource tasks to external vendors—both of which can affect service quality.

For the client, these internal challenges might show up as slower response times, frequent turnover of support staff, or inconsistent troubleshooting.

3. Scaling Support Without Losing Quality

Growth is a double-edged sword for MSPs. More clients mean more revenue—but also more devices, tickets, compliance concerns, and support demands. If they scale without the right infrastructure, quality drops.

This often results in long response times, missed SLAs, or unresolved tickets. A stretched support team might overlook important issues or fail to communicate effectively with clients.

To scale successfully, MSPs must invest in automation, documented processes, and specialized roles. Without those investments, clients may feel neglected—even as the provider continues to grow.

4. Managing Diverse Client Environments

Each client has its own infrastructure, policies, software stack, industry regulations, and user expectations. Managing such diversity is like juggling multiple businesses at once—especially when legacy systems, custom setups, or remote workforces are involved.

For example, one client might run a hybrid cloud environment with custom integrations, while another relies on outdated on-prem servers. The MSP needs to be fluent in both—and ready to troubleshoot anything, anytime.

If an MSP lacks depth in certain areas, or doesn’t segment client systems effectively, they risk making critical errors. For clients, this can lead to misconfigurations, downtime, or missed compliance requirements.

5. Tool Sprawl and Integration Issues

Most MSPs rely on a mix of tools: RMM (remote monitoring and management), PSA (professional services automation), ticketing systems, antivirus, backup platforms, and more. But as the tech stack grows, managing it becomes more complex.

Tool sprawl leads to inefficiencies—technicians waste time switching between systems, alerts get missed, and reporting becomes disjointed. In some cases, overlapping tools create security gaps or data inconsistencies.

Integrating these tools effectively requires time, technical expertise, and sometimes expensive middleware or custom development. Many smaller MSPs simply don’t have the bandwidth.

6. Client Expectation Misalignment

Many challenges arise not from the technology itself, but from misaligned expectations. Clients might assume that “24/7 support” means instant resolutions at any hour—or that managed services include strategic IT planning, vendor management, or unlimited on-site visits.

Meanwhile, MSPs may assume the client understands limitations written in the service agreement, like capped support hours or excluded services.

This misalignment often leads to frustration, service disputes, or churn. To prevent this, MSPs need to invest in client education, frequent check-ins, and clear onboarding. But many fail to dedicate time or staff to client success roles.

7. Compliance and Liability Pressure

MSPs are increasingly held responsible for their clients’ compliance with industry regulations. Whether it’s HIPAA, GDPR, PCI-DSS, or SOC 2, the stakes are high—noncompliance can lead to fines, lawsuits, or contract loss.

But managing compliance across multiple clients with different standards is a massive undertaking. It requires specialized knowledge, continuous updates, detailed documentation, and secure handling of sensitive data.

If an MSP misconfigures a firewall, skips a patch, or overlooks a backup requirement, the client may suffer—but the provider may be held accountable. This growing pressure increases legal liability and insurance costs for MSPs.

8. Margin Compression

As more MSPs enter the market and competition intensifies, pricing becomes a race to the bottom. Many clients demand more for less: broader support, faster service, deeper cybersecurity—all without paying more.

Meanwhile, providers face rising costs from tools, labor, training, and cybersecurity insurance. Balancing service quality with profitability becomes difficult.

To stay viable, MSPs must find efficiencies through automation, strategic client selection, or bundling value-added services. But the margin squeeze makes it harder for smaller MSPs to invest in growth or offer premium support.

Signs Your Current MSP Might Be Underperforming

Strengthen Your Operations with Expert Solutions from Pasadena’s Leading Managed IT Service Provider

Running a business is hard enough without worrying whether your MSP is keeping up. The reality is, many of the MSP challenges we explored—like evolving cyber threats, poor response times, or rigid service models—can quietly chip away at your efficiency, security, and trust.

At CentraLink, we don’t just fix issues, we help you get ahead of them. With a cybersecurity-first approach, personalized support, and strategic insight built into every engagement, we focus on what matters to you: staying protected, supported, and ready for what’s next. Contact one of the most trusted managed IT services providers in Pasadena today to discover how we can help you overcome IT challenges and build a stronger, smarter tech foundation.

Contact Information:

CentraLink

87 E Green St Suite 308
Pasadena, CA 91105
United States

Armen Avenessian
(626) 706-3551
https://centralink.net/