At some point, most growing MSPs hit a wall. Maybe your help desk is overloaded. Maybe you’ve got a chance to win a bigger client but lack security chops. Or maybe a customer has locations outside your service area, and you don’t want to fly someone across the country to reboot a firewall. That’s where partnering with another MSP can make a lot of sense.
Done right, MSP-to-MSP partnerships help you scale faster, improve service delivery, and win business you’d otherwise have to walk away from. Done wrong, they can create confusion, client dissatisfaction, or worse—legal and reputational headaches.
So how do you structure an agreement that supports growth without putting your business at risk?
Let’s walk through the key considerations.
When Does Partnering with Another MSP Make Sense?
There are a few common scenarios where MSPs turn to peer partnerships:
- Geographic Gaps: You have a client with remote offices outside your region.
- Specialty Services: You need help with a specific discipline like compliance, cybersecurity, or VoIP that’s outside your core offering.
- Overflow Support: Your help desk is stretched and you need to subcontract temporarily.
- Co-managed IT: You’re engaging with a large client’s internal IT team and need backup from another experienced provider.
These situations are common, so having a trusted MSP partner can mean the difference between seizing the opportunity or watching it pass by.
Relationship Structure: Key Terms and Considerations
You may not need a 40-page legal document — unless the job is huge — but you always need a written agreement. This is true even when you’ve known the other MSP for years.
Here are some of the most important elements to include:
- Scope of Work: Define exactly what the partner MSP is responsible for. Will it handle only after-hours support? Is it managing the entire cybersecurity stack? Be precise; vague language creates confusion and risk.
- Client Ownership: This can be a sticking point. If they’re interfacing directly with your client, the agreement must acknowledge that you own the relationship. Make sure your MSP partner won’t attempt to solicit your client for additional business.
- Communication Expectations: Spell out how information will flow. Will your partner MSP log tickets in your PSA? Will it use its own tools but provide reports? Clearly state how updates, escalations, and issues will be handled.
- Billing and Payment Terms: Will you pay your partner MSP hourly, per ticket, or on a retainer? When should the other MSP invoice you and what’s your payment window? Nail this down early to avoid disputes later.
- SLAs and Response Times: Align expectations on service levels. If your SLA with the client says 30 minutes, but your partner takes two hours to respond, you will take the heat.
- Confidentiality and Data Handling: It’s your client’s data, but it’s your responsibility. Make sure your partner is bound by the same privacy and data security terms as you. A standard NDA (non-disclosure agreement) is a good baseline.
Track the Partnership: How to Monitor Performance
It’s not enough to set expectations. You also need a way to track whether they’re being met.
That could mean regular reports on ticket resolution times, documentation updates in your systems, or even client feedback surveys post-interaction. Keep an eye on:
- Missed or late SLAs
- Communication breakdowns
- Documentation quality
- Any signs your client is confused or unhappy
When things go well, formalize regular check-ins with your partner MSP. A 30-minute call each month to discuss open issues, feedback, and upcoming needs can go a long way in keeping things on track.
The Case for Involving a Lawyer
Even if you’re working with someone you trust, don’t skip legal review. A business attorney with MSP experience can help you avoid language that leaves you exposed or fails to address key risks.
Especially if client data is involved or your partner is client-facing, get it in writing and get it reviewed. You don’t want to discover too late that your agreement doesn’t actually protect you.
Pros and Cons of MSP-to-MSP Agreements
Like any business strategy, this one comes with tradeoffs.
Pros
- Lets you expand capabilities without hiring full-time staff
- Helps you win and retain larger clients
- Provides coverage during staff shortages or rapid growth
- Builds goodwill and community within the MSP ecosystem
Cons
- Adds complexity to service delivery and communication
- Requires additional tracking and oversight
- Risk of misalignment in service standards or client experience
- Possibility of losing a client if boundaries aren’t respected
Final Thoughts
Partnering with another MSP can be a powerful tool in your growth strategy. But this is only if the relationship is clearly defined, mutually beneficial, and based on trust and accountability. The handshake may start the deal, but the written agreement keeps everyone aligned.
If you’ve been saying yes to opportunities you’re not fully staffed for or saying no to good clients because you lack a specific skill, this kind of partnership could unlock a whole new level of success.
Just go in with eyes open and agreements in hand.
Next Steps
- Want more helpful guidance? Check out our Strategic Partnerships Answer Center.
- Have a question for our experts? Send it to editors@channelpronetwork.com
ChannelPro has created this resource to help busy MSPs streamline their decision-making process. This resource offers a starting point for evaluating key business choices, saving time and providing clarity. While this resource is designed to guide you through important considerations, we encourage you to seek more references and professional advice to ensure fully informed decisions.
Featured image: iStock
