When it comes to keeping your business running smoothly, choosing the right Managed Service Provider is one of the most important decisions you’ll make. In a city like London, where businesses depend heavily on reliable IT to stay competitive, partnering with an experienced MSP in London is essential.
However, many organisations find themselves locked into 12, 24 or even 36-month contracts with their IT providers, often without fully appreciating the implications. While long-term agreements might seem to offer stability, they can also come with hidden drawbacks — particularly if your MSP falls short of expectations.
This article explores why so many Managed Service Providers favour long contracts, why these arrangements aren’t always in the client’s best interests, and how rolling 30-day contracts could offer a smarter, more flexible alternative.
Why do MSPs prefer long-term contracts?
The answer is quite simple: long contracts primarily benefit the MSP. Here’s how:
- Predictable cash flow: Fixed-term contracts give Managed Service Providers guaranteed income for one, two or even three years, helping them plan their budgets and investments with confidence.
- Reduced client turnover: If you’re tied into a contract for several years, it becomes much harder to leave — even if the service declines. This reduces the risk for the MSP and makes their revenue stream more secure.
- Easier to justify upfront investment: Some MSPs might require significant initial work to onboard your business. A long contract ensures they’ll recoup these costs over time.
While these points are understandable from the provider’s perspective, they can leave the client exposed.
The hidden disadvantages for clients
Locking into a multi-year contract can pose several risks:
- Trapped by underperformance: If your MSP doesn’t meet expectations — whether it’s slow response times, recurring issues, or poor communication — you’re effectively stuck. Exiting early usually means paying hefty penalties.
- Less motivation for excellence: With a long contract in place, there’s less immediate pressure on the MSP to maintain consistently high standards. Some providers unfortunately become complacent, knowing you can’t easily switch.
- Inflexibility as your business evolves: The IT needs of your business might change dramatically within a year. Being locked into a rigid contract can limit your ability to adapt, invest in new technology or scale up with another partner.
- Potential misalignment: What suited your business at the start of the agreement might no longer be appropriate later on. Meanwhile, you’re still paying for a service that’s no longer an ideal fit.
Why rolling 30-day contracts are a smarter choice
Fortunately, not every MSP insists on tying clients into long agreements. Some providers, such as Proxar IT Consulting, offer rolling 30-day contracts, giving you the freedom to review your partnership regularly. This can deliver several important advantages:
1. Keeps your MSP accountable
A rolling contract means your Managed Service Provider must earn your trust month after month. They can’t afford to drop the ball, because you’re not tied in. If service quality slips, you’re free to move on without facing substantial exit fees. This naturally drives higher standards.
2. Flexibility to respond to change
Your business isn’t static, and neither should your IT support be. Whether you’re growing, restructuring or pivoting, a rolling agreement gives you the ability to adjust your IT partnership as needed.
3. Lower financial risk
With no long-term commitment, you avoid the burden of paying for an unsatisfactory service or dealing with lengthy termination processes. If circumstances change, you have the freedom to take action.
4. Still allows longer-term peace of mind if desired
A high-quality MSP will still be happy to discuss longer-term arrangements if that suits you offering both rolling contracts and fixed terms, this gives clients complete control over what works best for them.
How rolling contracts encourage better service
One of the biggest benefits of a rolling agreement is how it shapes the behaviour of your MSP. Without the cushion of a multi-year tie-in, they’re motivated to:
- Proactively maintain systems and prevent issues
- Respond quickly when problems do occur
- Communicate transparently and regularly
- Continually demonstrate value to your business
It becomes a true partnership, with your MSP working hard to prove their worth every month, rather than relying on contractual fine print to retain your business.
Are fixed-term contracts ever a good idea?
In some cases, yes. For example, if your organisation is planning a large infrastructure upgrade, a fixed contract might help secure competitive rates or ensure long-term support for a complex system. Some businesses also prefer the predictability of knowing costs are locked in for a set period.
That’s why many reputable providers, including Proxar, offer both options. The key is transparency — and ensuring clients understand they aren’t obliged to commit long-term if that’s not in their best interest.
Awareness is everything
Many businesses simply aren’t aware that rolling 30-day services even exist. The IT industry has long encouraged multi-year contracts, framing them as the standard approach. However, that doesn’t mean it’s the only — or best — option.
By taking time to explore contract structures, you keep control in your hands. It’s about finding an MSP willing to earn your trust continually, rather than securing your commitment through paperwork alone.
Looking for a flexible MSP in London?
Proxar IT Consulting are a Managed Service Provider who believe long-term relationships should be built on quality of service, not lengthy tie-ins. Whether you prefer a rolling monthly agreement or would like to discuss a longer-term contract for specific needs.