The Complete Guide to Switching IT Providers: How to Know When It Is Time
Switching IT providers feels risky. What if the new company is worse? What if the transition causes downtime? We get it. This guide will help you objectively evaluate your current provider, understand what great IT actually looks like, and plan a smooth transition if you decide to make a change.
Let us be honest: changing IT providers is scary. You are busy running a business, and the thought of:
Transition disruption - Will we have downtime?
The devil you know - At least we understand our current problems
Learning curve - Starting over with someone new
Contract issues - Are we even allowed to leave?
These fears keep many businesses stuck with mediocre IT support for years. But here is the thing: the cost of staying with the wrong provider often far exceeds the cost of switching.
This guide will help you make an objective decision.
Part 1: The 5 Warning Signs Checklist
Before we talk about switching, let us evaluate whether you should even consider it. Check every box that applies to your current situation:
Warning Sign #1: Déjà Vu Problems
The same issues keep happening over and over
Problems get "fixed" but come back weeks or months later
You have accepted certain issues as "just how it is"
Your IT company applies band-aids instead of solving root causes
What this means: Your provider is either understaffed, undertrained, or unmotivated to solve problems permanently.
Warning Sign #2: You Find Out First
Your staff reports problems before your IT company notices
You discover outages when customers or employees complain
There is no proactive monitoring or alerting
You rarely hear from your IT company unless you call them
What this means: Your provider lacks proper monitoring tools or is not actually watching your systems.
Warning Sign #3: Security Silence
No one has talked to you about cybersecurity in the last 6 months
You do not know if you would survive a ransomware attack
Your last security assessment was more than a year ago (or never)
You have no documented incident response plan
What this means: Your provider is not prioritizing the single biggest risk to your business.
Warning Sign #4: Backup Mystery
You do not know if your backups actually work
No one has tested a restore in the last 6 months
You are unsure what is backed up and what is not
Recovery time objectives (RTO) have never been discussed
What this means: Your disaster recovery is theoretical, not tested. When you need it, it may fail.
Warning Sign #5: The Waiting Game
"We will get to it" is a phrase you hear too often
Response times are unpredictable
Critical issues do not get priority treatment
You feel like you are bothering them when you call
What this means: Your provider is overloaded, understaffed, or does not value your business appropriately.
Your Score
0 boxes checked: Your provider is doing well. Keep them.
1-2 boxes checked: There are gaps worth discussing with your provider.
3-4 boxes checked: You should seriously evaluate alternatives.
5+ boxes checked: Your IT is a liability, not an asset. Time to switch.
Part 2: What Great IT Actually Looks Like
Before you can evaluate providers, you need to know what "good" looks like. Here is what you should expect from a competent managed IT partner:
Proactive Communication
Great IT providers:
Call you before things break - "We noticed your server was running hot and fixed it before anyone else knew"
Provide regular strategic reviews - Quarterly meetings to discuss technology roadmap
Send clear status updates - You always know what is happening with your systems
Answer the phone quickly - Response times measured in minutes, not hours
Expertise That Matters
For manufacturing and operational businesses:
Understand your industry - OT/IT convergence, SCADA, PLCs, ERP systems
Speak your language - Production uptime, not just "server availability"
Understand your business goals - Technology should enable growth
Provide predictable costs - No surprise bills
Earn your business every month - No long-term lock-in contracts
Become an extension of your team - They know your people, your systems, your priorities
Part 3: The True Cost of Bad IT
Before you dismiss switching as "too much hassle," calculate what your current situation is actually costing you:
Direct Costs
Cost Category
Your Estimate
Monthly IT spend (current provider)
$_______
Hourly emergency/after-hours charges
$_______
Hardware replacement due to poor maintenance
$_______
Software licensing inefficiencies
$_______
Hidden Costs (Often Ignored)
Cost Category
Industry Average
Your Estimate
Unplanned downtime per hour
$1,000-$5,000
$_______
Hours of downtime per month
2-8 hours
_______ hours
Employee productivity loss (slow systems)
10-20%
_______ %
Staff time managing IT issues
5-10 hours/week
_______ hours
Risk Costs
Risk
Average Cost
Probability
Ransomware attack (manufacturers)
$1.27 million
Growing rapidly
Data breach (SMB)
$2.98 million
43% of attacks target SMBs
Compliance violation
$50,000-$500,000+
Depends on industry
The Bottom Line
Most businesses we evaluate are spending 2-3x what they think on IT when you factor in hidden and risk costs. A better IT partner often costs the same or less than what you are paying now - while delivering dramatically better results.
Part 4: How to Evaluate a New IT Provider
If you have decided to explore alternatives, here is what to look for:
Must-Have Questions to Ask
1. "How long is your typical client relationship?"
Look for: 10+ years average. Red flag: "We are growing fast" (means high churn)
2. "What happens when something breaks at 2 AM?"
Look for: Clear escalation process, guaranteed response times. Red flag: "We will get back to you in the morning"
3. "When was the last time you called a client proactively?"
Look for: Specific examples, regular practice. Red flag: Confusion or "we are usually pretty busy"
4. "What does your security stack include?"
Look for: Comprehensive answer (EDR, email security, MFA, backups, training). Red flag: Vague answer or "we recommend antivirus"
5. "Do you require long-term contracts?"
Look for: Month-to-month or annual with easy exit. Red flag: Multi-year contracts with penalties
6. "What industries do you specialize in?"
Look for: Experience in YOUR industry. Red flag: "We work with everyone"
References to Request
Ask for 3 clients in your industry
Ask for a client who switched from a competitor
Ask for a client who has been with them 10+ years
Trial Period
A confident provider will offer:
A paid pilot project (not just a sales demo)
A transition plan with clear milestones
An exit clause if things do not work out
Part 5: Planning a Smooth Transition
If you decide to switch, here is how to minimize risk:
Pre-Transition (2-4 Weeks Before)
Document everything - Inventory of systems, accounts, credentials
Get data from current provider - Ensure you have access to everything
Bookmark this page. When your current provider drops the ball one too many times, you will know where to find us.
Frequently Asked Questions
How long does a typical transition take?
2-4 weeks for most businesses. We can do faster if needed, but a measured transition is safer.
Will there be downtime during the switch?
Our goal is zero downtime. We run parallel support during the transition and handle the handoff transparently.
What about our current contracts?
We will review your current agreements and help you understand your options. Most contracts have exit provisions, even if they are not obvious.
Do you require long-term contracts?
No. We earn your business every month. You stay because we deliver value, not because you are locked in.
What if we switch and it does not work out?
We offer a satisfaction guarantee during the first 90 days. If we are not delivering what we promised, you can exit with no penalty.
About Preferred Data
Since 1987, Preferred Data has been the trusted technology partner for manufacturers, distributors, and operational businesses across North Carolina. Our clients stay with us for decades because we treat their business like our own.
