SLA Statistics and Key Performance Indicators in the Outsourced IT/MSP Industry
Introduction
In the Managed Services Provider (MSP) industry, there are several key performance indicators (KPIs) that are used to measure the efficiency and effectiveness of service delivery. Understanding these metrics can help MSPs improve their services and clients to set their expectations. This article will explain these metrics and provide a general guideline for what might be considered good performance in each area.
Key Performance Indicators
Median Email Response Time
This metric measures the time it takes for a service provider to respond to a client's email. It's a key indicator of the efficiency and responsiveness of a provider's customer service. Many will measure this only as "During Business Hours" - but ECS uses 24/7 time for this statistic.
Good Performance: A good median email response time could be within 1 hour during business hours. This ensures that clients' concerns are promptly acknowledged and addressed.
Industry Performance: Typically, you can expect an Outsourced IT company or Managed Service Provider to maintain a 4 hour median email response time during business hours. Some providers have a longer expected response time as a cost savings measure, if you are consistently not getting responses within a reasonable timeframe for your business needs - it's likely that your needs are not aligned with your provider.
Median Ticket Resolution Time
This KPI measures the average time it takes for a service provider to resolve a ticket, from the moment it's opened until it's closed. This is a critical measure of the efficacy and efficiency of a provider's technical support team. More experienced staff will be able to resolve issues much more quickly, resulting in less lost time for your valuable employees. In most professions you can expect an employee to have a technical issue that should be a ticket at least once every two months.
Good Performance: A good median ticket resolution time would be within 48 hours, depending on the complexity of the issues. This ensures that technical issues are resolved quickly, minimizing disruption to the client's operations. Less than 20% of providers achieve this level of performance.
Industry Performance: The industry average is 3 days, 10 hours - according to the study in the linked article. The outsourced IT / MSP industry is not an outlier here. However, different providers have different priorities - and typically this is one of the key distinguishing factors that makes a premium service provider.
Source: https://www.jitbit.com/news/2266-average-customer-support-metrics-from-1000-companies/
Median Call Answer Time (Speed of answer)
This metric measures the average time it takes for a service provider to answer a client's call. It's an important measure of the accessibility and responsiveness of a provider's support team. For businesses that store private client information, financial information, or are heavily computerized - this performance is absolutely critical to detecting and resolving security incidents before attackers can gain a foothold.
Good Performance: A good median call answer time could be within 30 seconds. This ensures that clients can get help quickly when they need it.
Industry Performance: Not all providers have direct calling as an option, and this statistic used to be very bad for the industry. However, among the providers that do allow direct call-in in the industry, we find that recently they have stepped up are typically fairly responsive. A median wait time of around 40-50 seconds is not abnormal.
Median PC Turnaround Time
This KPI measures the average time it takes for a service provider to resolve hardware issues, physical upgrades, or operating system reloads. It should be how long it takes computer technicians to resolve the issue and make the device available to you again - and may or may not include the time spent waiting for replacement parts or other vendors.
Good Performance: A good median PC turnaround time might be within 48 hours, depending on the severity of the hardware issue. This ensures that hardware issues are resolved quickly, minimizing disruption to the client's operations.
Industry Performance: This statistic is difficult to obtain, but the study referenced above suggests a longer timeline at the majority of providers. These tickets always take longer than those that can be resolved remotely, and the industry average among all tickets was 82 hours.
Ticket Backlog (# of tickets not responded to within first 24 hours)
This metric measures the number of tickets that have not been responded to within the first 24 hours. It's a measure of a service provider's workload management and capacity. Typically this is a leading indicator for Outsourced IT and MSP industry providers that their service desk is unable to keep up with demand.
Good Performance: A good ticket backlog is zero tickets. This ensures that all issues are promptly addressed, leading to higher customer satisfaction. However, it is normal to see a small number on Mondays for providers who primarily operate on weekdays.
Industry Performance: The industry average for this statistic is difficult to get accurate information on, as it isn't always measured or reported on in official channels. Based on our previous experiences, we would expect most providers to be at 5% of their total daily ticket volume or less, unless there is an event causing a larger backlog.
Conclusion
These KPIs are crucial for measuring the performance of an MSP. They provide a clear picture of the efficiency and effectiveness of service delivery. By understanding these metrics, MSPs can identify areas for improvement, and clients can set their expectations for service delivery. Please note that the