IT Support for Businesses

How to Fire Your IT Provider

It may seem odd that a managed service provider is writing a blog about how to fire your IT company, but it's business ...


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It may seem odd that a managed service provider is writing a blog about how to fire your IT company, but it's business and this is a reality.
I have heard it all from so many of my friends, business associates and new clients. I have reviewed contracts for people and have been asked, "Is this a normal thing to expect from my IT company?"


As I said, business is business and no one likes losing a client, but it's inevitable that most companies come to a point where they need to change their IT provider. This might be an in-house person who’s worked many years for you, it might be a contractor or a Managed Service Provider that you’ve partnered with for a long time. Firing your IT provider isn't an easy task, but sometimes it's necessary to ensure your business runs smoothly.

Whether it's due to poor service, lack of communication, or high costs, knowing how to terminate an IT contract and replace your IT company can save you a lot of stress. We have been on both ends of this situation, so we know a thing or two about the process and the pitfalls. Sometimes it goes smoothly, sometimes it doesn't. We will tell you what you need to know in advance if you are thinking about making the change and effectively fire your IT provider and ensure a smooth transition.

What You Need to Know Before You Make the Move

Once you've decided to fire your IT provider, you'll need to follow a clear process to ensure a smooth transition. Proper planning and execution can help minimize potential disruptions. In our experience, we have seen it go two ways.

We have been in situations where we are taking over IT from a provider and they are helpful, work with us, are not against us, and truly want to leave their client on good terms. I'm an optimist and think that most providers feel this way.

But then we have also been in the other situation The provider is angry and unwilling to provide passwords, vital information, or access, and they make the client pay in more ways than one to get out of their contract. When we find ourselves in that position, I can assure you that we will get things transitioned either way, but it might take more brute force and time to take things over.

Review and Understand Your Contract.

Before taking any action, thoroughly review your current IT contract. Look for clauses related to termination, notice periods, leased equipment, and any potential penalties for early termination. I have helped clients and friends review their contracts over the years and have seen some pretty interesting termination clauses.

Know how many days' notice they require to terminate their contract, and understand the costs associated with termination. Some companies just want you to pay out a small portion of the contract and licensing fees that they may have already paid for on your behalf. Some want to charge a termination fee on top of that. Understanding these details will help you plan your next steps and avoid unexpected costs.

What About Passwords?

You are not going to know all of your passwords to gain access to all of your systems. For most companies, it is best not to know all of them for security reasons, but you should have the ability to access them. We host a cloud password management system that we can share with our clients so that they have access to their information. Remember You own this information; you have a right to it.

  • Do you have a global administrator account to your Office 365?
  • Do you know all of the passwords to your printers? (This might be one of the most overlooked items we run into.)
  • Do you know the passwords to gain access to your network?

Before you let them know that you are firing them, you need to get as many passwords as possible. If they are reluctant to give you passwords or provide access, make up an excuse so you don't raise suspicions. Tell them your insurance is requiring you to gain access and passwords. Let them know the boss wants to make sure they have access to all passwords. Gaining as many passwords as possible and knowing what you do (or don't) have access to will be very beneficial.

Make Sure Your Data is Being Backed Up.

A Real-World Example That Actually Happened to Us During a Transition.

We were taking over for another managed service provider and the client knew their server was on its last leg I'm talking, death any day.

We asked the client about backups, how they were being backed up, and where the data was stored. They weren't sure, but knew they were paying their MSP for onsite and offsite backups, so if the server crashed, they still had their data.

The week of the transition, before their new server was delivered, their old server died. This is when they found out that their offsite backups had been failing for months, and their MSP didn't do anything to fix them. They lost 5 months of all of their data. In this case, there was nothing we could do to get it back because the server was 9 years old, under-powered, and 100% dead in the water.

Before you officially terminate your contract, ensure that all your data is backed up securely. This step is crucial to prevent any potential data loss during the transition period. Use reliable backup solutions and verify that your backups are complete and accessible. Test your backup systems to ensure they function correctly, and store copies in multiple secure locations to mitigate risks. Ask your current IT provider to send you a backup report showing you how much data is being backed up where and know your retention points.

For more on this crucial step, read our page about how to know if your backups are truly being backed up.

Know What Hardware You Own and Where It Is.

Do you own all of your hardware? Is any of it leased from your current provider? If you are leasing a firewall for example, and you don't have something purchased to replace it when they leave, your network will shut down.

How old is your hardware? Are any of the workstations or servers at risk of failure due to age? Do you know where all of your access points, switches, and battery backups are? Knowing all of this will not only allow for a smoother transition to your new provider but will also help you avoid potential problems if they up and leave with their equipment or without a proper understanding of what you have and what needs replaced.

Ask your provider for a hardware asset report. This should give you a comprehensive list of all hardware, ages, serial numbers, locations, etc. If you're worried that this might tip them off, tell them you are trying to put together a budget for IT hardware replacements. This also gives you the opportunity to ask if you own all of the hardware listed.

Have Your New Provider Look Over and Test Everything.

Before you notify your current provider, have your new provider look over everything you have. They can point out information that might be missing or hardware that should be ordered before the transition. They can also test passwords to make sure they work.

They should also ask to take a look at your network setup, your servers, and your Office 365 environment. They can identify areas that need addressed by your current IT team before it becomes a problem. Having a clear plan and expectations laid out with your new provider is critical to make the transition a success.

Ask them what happens if they don't have access to everything. How will they help with the transition? What are their break-glass methods in case things go south? You should feel confident that your new IT provider has the information they need or a way to gain access if they don't.

Notify Your IT Partner.

Once you're clear on the terms of your contract, access, and a plan with your new IT team, it's time to notify your current IT provider of your intention to terminate the agreement. It's best to do this in writing, either via email or a formal letter.

Be clear and concise about your reasons for ending the contract and include any relevant details from the contract itself. Maintaining a professional tone is crucial, as you'll want to preserve a positive relationship in case you need to collaborate during the transition period.

Include a note about who your new IT contact is and that they should work directly with them for the transition. Provide them with all of the necessary contact information and a date for the final cutover. Send a second email introducing the two providers and ask them to work together to ensure a smooth transition.

Plan for Data and Service Transition.

One of the most crucial aspects of firing your IT provider is ensuring that your data and services are transitioned smoothly to your new provider. Begin by making a comprehensive list of all the systems and data that need to be migrated. Work with your current provider to ensure that you have access to all necessary information and tools. It's important to establish a clear data migration plan to avoid any loss or corruption of data during the transition.

Consider scheduling regular check-ins with your current provider to monitor the progress of the transition. When we onboard a new client and have to take over IT from an existing IT employee or team, we take the reins in most cases. We set up the calls, and we work with them to gain access and information. This way the client doesn't have to be the middleman and spend their time passing information back and forth.

Work with your current and new IT providers to establish a clear timeline for the transition. This should include key milestones such as data migration, service setup, and testing. A well-planned timeline will help ensure that the transition is as smooth as possible with minimal downtime. Clearly define responsibilities for each party involved in the transition to ensure accountability and timely execution of tasks. Our goal is to make the switch easy and seamless. We want to start out with a strong, trusting foundation to build a partnership. Making what often times is an uncomfortable situation easy and as hands off as possible let's our client stay in the neutral zone for the most part.

 

By following these steps, you can effectively fire your IT provider, terminate your IT contract, and replace your IT company with minimal disruption to your business operations.

With the right approach, you'll be able to transition to your new IT team and move on with life and business as usual.

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