The short answer: A managed service provider (MSP) is a company that takes ongoing responsibility for running some or all of your IT, for a fixed monthly fee under a written service agreement. Instead of calling someone when things break, the MSP monitors, maintains and secures your systems continuously, answers your team’s support requests, and plans ahead. Most UK MSPs charge per user per month, and the service level agreement sets out exactly what they are responsible for and how quickly they respond.
Last updated: 29 September 2026. Written by the ATS Connection team from how we run our own managed service, with UK government and NCSC sources linked below.
In this guide
- What is a managed service provider?
- How does an MSP work, step by step?
- The tools behind a managed service
- Service levels and contracts
- How MSPs charge
- MSP vs break-fix, MSSP and in-house IT
- How MSPs are being regulated in the UK
- Questions to ask an MSP
- Frequently asked questions
What is a managed service provider?
The UK government’s working definition is useful because it is precise. In its factsheet on the Cyber Security and Resilience Bill, a managed service is one provided under contract for the “ongoing management of information technology systems” of a customer, which can include support and maintenance, monitoring and active administration, and which involves the provider connecting to the customer’s systems, on site or remotely.
Three words in that definition separate an MSP from other IT companies: ongoing (not one-off jobs), management (responsibility, not just advice) and access (the MSP works inside your systems). For a small or medium business, the MSP is effectively the IT department.
Most MSPs cover the core of business IT: user support, devices, Microsoft 365, networks, security and backups. Many also manage phones and broadband. Some specialise, for example a managed security service provider (MSSP) that only runs cyber security.
How does an MSP work, step by step?
A managed service follows the same lifecycle with every client. This is how it works at ATS Connection, and a good MSP should be able to describe its own version just as clearly.
1. Discovery and audit
Before taking over, the MSP audits what you have: every device, user, licence, application, network component and supplier, plus how data is backed up and who has admin access. This produces the documentation your business may never have had, and a list of risks to fix first.
2. Secure handover
Admin access is transferred from the previous provider or internal person, passwords are changed and stored in a secure vault, monitoring and security agents are installed on every device, and old access is removed. This is the most sensitive stage, because for a short period two parties may hold the keys.
3. Remediation
The urgent findings from the audit get fixed: multi-factor authentication switched on, missing updates installed, unsupported devices replaced or isolated, backups tested. Our onboarding typically takes around three weeks from discovery to fully live, depending on size.
4. Business as usual
From then on, two streams of work run in parallel. The reactive stream is the helpdesk: staff raise requests by phone, email or portal, and engineers resolve them, remotely where possible. The proactive stream is the scheduled work: patching, monitoring alerts, backup checks, security reviews, licence tidy-ups and replacing hardware before it fails.
5. Review and planning
A good MSP reports back regularly on tickets, security status and risks, and meets you to plan the next year’s budget and priorities. This is what turns IT from a cost you tolerate into something that is actually managed.
What tools does an MSP use?
MSPs run on a standard set of platforms. Knowing what they are helps you ask sensible questions:
| Tool | What it does | Why it matters to you |
|---|---|---|
| RMM (remote monitoring and management) | Monitors every device and deploys updates and scripts remotely | Problems get spotted before users notice, and patching is provable |
| PSA or ticketing system | Logs every request, response time and resolution | You can see what was asked, when, and how quickly it was fixed |
| Endpoint detection and response (EDR) | Detects and stops malicious behaviour on devices | Goes beyond traditional antivirus against ransomware |
| Backup platform | Backs up devices, servers and Microsoft 365 | Independent copies you can restore from |
| Password vault and documentation | Stores admin credentials and system records securely | Your IT knowledge is not in one person’s head |
| Microsoft 365 admin tools (Intune, Entra ID) | Manages devices, identities and access policies | Lets the MSP enforce MFA and secure lost devices |
Because these tools give the MSP powerful access to every client, the MSP’s own security is critical. That is exactly why the government is now regulating MSPs, covered below.
What should an MSP’s service level agreement cover?
The service level agreement (SLA) is where the service is defined. A clear SLA covers:
- Scope: which users, devices, systems and locations are covered, and what is excluded.
- Response times by priority, and ideally resolution targets. Response means a human engineer starts working on it, not an automatic email.
- Support hours and what happens out of hours.
- Responsibilities on both sides, including who owns admin accounts and who approves changes.
- Security obligations: patching timescales, backups, how the MSP protects its own access, and how quickly it tells you about an incident.
- Reporting and reviews: how often you get reports and meetings.
- Term and exit: notice period, and the documentation and handover you receive if you leave.
Our own service is unlimited during business hours with no per-ticket charges, and the response time is guaranteed in writing in every agreement. Our average response time is under 15 minutes.
How do MSPs charge?
There are three common pricing models:
- Per user, per month. The most common model for small businesses, because it scales with headcount and covers each person’s laptop, phone and accounts.
- Per device, per month. Used where devices outnumber people, such as shared workstations or kiosks.
- Tiered packages. A basic support tier and higher tiers that add security, backup and compliance.
In the UK, managed IT support usually costs £30 to £90 per user per month. We publish ours: Core support from £30 per user per month and Complete IT and security from £55, with licences and hardware billed at cost. See our IT support pricing and our guide to outsourced IT support costs.
How does an MSP compare with break-fix, an MSSP or in-house IT?
| Option | What you get | Strengths | Watch out for |
|---|---|---|---|
| MSP | Ongoing management of your IT for a fixed fee | Predictable cost, proactive, team of skills | Quality varies; check the SLA and security |
| Break-fix provider | Help when something breaks, paid hourly | No commitment | No prevention, unpredictable bills |
| MSSP | Specialist managed security, often 24/7 monitoring | Deep security expertise | Does not fix everyday IT issues |
| In-house IT | Your own employee or team | On site, knows the business | Cost, single point of failure, narrow skills |
| Co-managed | An MSP working alongside in-house IT | Cover and tools for your IT person | Needs a clear split of responsibilities |
We compare these in more depth in in-house vs outsourced IT support and IT outsourcing models explained.
How are MSPs being regulated in the UK?
The Cyber Security and Resilience (Network and Information Systems) Bill will bring medium and large MSPs under UK cyber security regulation for the first time. As of September 2026 it is still going through the House of Lords and is not yet law. The government’s reasoning is that MSPs have “widespread and trusted access” to their customers’ systems, so one compromised MSP can affect many businesses at once.
Under the Bill as published, relevant MSPs would have to register with the regulator, take proportionate measures to manage cyber risk, and report significant incidents within 24 hours with a full report within 72 hours. Small and micro MSPs are exempt, although they can still be designated as critical suppliers. Our guide to the Cyber Security and Resilience Bill explains who is in scope and what it means for small businesses.
Whatever the final rules, the lesson for buyers is the same: the security of your MSP is part of your security. Ask how it protects its own access to your systems.
What questions should you ask an MSP before signing?
The NCSC’s guide to choosing a managed service provider, published in November 2025 for small businesses, covers certifications, security, contracts and incident notification. Drawing on it, ask:
- Are you certified to Cyber Essentials or Cyber Essentials Plus? The NCSC recommends providers with recognised certifications.
- How do you secure your own access to our systems, including MFA, least privilege and logging?
- How quickly will you tell us about a security incident that affects us?
- Who owns our Microsoft 365 tenant, domain and admin accounts?
- How are our backups done, and when were restores last tested?
- What is the guaranteed response time, and what counts as a response?
- What is included in the fee, and what is billed on top?
- What happens to our data, documentation and access if we leave?
- Can we speak to a current client of a similar size?
ATS Connection has been a managed service provider since 2015, supporting more than 100 businesses from Arundel and Chichester, and is Cyber Essentials certified. Find out more about our managed IT services or, if you are considering a move, how switching IT support provider works.
Frequently asked questions
What is a managed service provider (MSP)?
A company that takes ongoing responsibility for running some or all of a business’s IT, such as support, devices, Microsoft 365, networks, security and backups, for a fixed monthly fee under a service agreement.
How does an MSP work?
An MSP audits your IT, takes over admin access securely, fixes urgent risks, then runs a helpdesk for your staff alongside scheduled proactive work such as monitoring, patching and backup checks, with regular reporting and planning reviews.
What does MSP stand for in IT?
Managed service provider. In IT it means a company that manages a business’s technology on an ongoing basis, rather than fixing things only when they break.
How much does an MSP cost?
In the UK, managed IT support typically costs £30 to £90 per user per month, depending on how much security and compliance work is included. Licences and hardware are usually extra.
What is the difference between an MSP and an MSSP?
An MSP manages your IT generally, including everyday support. An MSSP, or managed security service provider, specialises in cyber security, such as round-the-clock threat monitoring, and does not usually fix everyday IT problems.
Will MSPs be regulated in the UK?
The Cyber Security and Resilience Bill proposes bringing medium and large MSPs into regulation, with registration, risk management and incident reporting duties. As of September 2026 the Bill is still in Parliament and not yet law.