Compliance used to be something that happened to other people. The big enterprise MSPs with their fancy certifications and audit trails. Not us smaller, scrappier operations who just got on with keeping systems running.
That's changed.
I was called in recently to help a company going through their year-end audit. The auditors were asking loads of questions about IT processes, controls, and documentation. The company kept having to say, 'We'll need to check with our MSP about that one.' By the end of the session, it was clear the MSP wasn't prepared for the level of scrutiny their client was under.
These days, even your mid-sized clients are getting pulled into compliance requirements. Their insurance company wants evidence of cyber security controls. Their new enterprise customer demands audit trails. Their industry regulator has updated requirements that trickle down to their IT suppliers - that's you.
And suddenly you're fielding questions about your change management documentation, incident response procedures, and whether your Service Desk processes can stand up to external scrutiny. Questions that make you think, 'Does our WhatsApp group where we discuss urgent changes count as formal change management?'
The reality is, most MSPs have good processes - they're just not documented, consistent, or audit-ready. There's a massive gap between 'we do this well' and 'we can prove we do this well consistently.'
Why Everyone's Asking for Compliance Evidence
It's not just the big players anymore. Smaller businesses are facing compliance pressures from multiple directions:
- Insurance companies are tightening their requirements. Your client's cyber insurance renewal now includes questions about their IT supplier's security practices. No documentation? Higher premiums or no coverage.
- New enterprise customers come with vendor assessment questionnaires that would make your head spin. They want to see your incident response plans, change management procedures, and evidence of regular security reviews.
- Industry regulations are trickling down. What used to affect only the largest companies in highly regulated sectors now affects their entire supply chain - including their MSPs.
- Financial auditors are asking more IT questions during year-end audits. They want to understand IT controls, particularly around data security and business continuity.
The common thread? Everyone wants evidence, not just assurances.
The Documentation Gap
Most MSPs I work with have decent processes. They respond to incidents quickly, they test backups, they manage changes sensibly. The problem isn't capability - it's evidence.
Here's what I typically find:
- Service descriptions are vague or non-existent. Most MSPs can tell you what they do, but they don't have formal service descriptions that clearly define what's included, what's not, response times, and escalation procedures. When auditors ask "What exactly does your IT support service include?" you need more than "We fix stuff."
- Change management happens in Slack channels or quick phone calls. There's no record of what was discussed, who approved what, or what the rollback plan was.
- Incident response is handled brilliantly in the moment, but there's no formal post-incident review or documentation of lessons learned.
- Security controls are in place and working, but there's no regular review schedule or evidence that they're being monitored consistently.
- Backup and recovery procedures exist in someone's head, but they're not written down or regularly tested with documented results.
The gap isn't technical competence - it's the difference between doing something well and proving you do it well consistently.
Quick Wins: Getting Compliance-Ready Without Breaking the Bank
The good news? You probably don't need to overhaul everything. Start with documentation and consistency:
- Create clear service descriptions. Document exactly what each service tier includes, exclusions, response times, and escalation paths. This isn't just for compliance - it prevents scope creep and sets clear expectations with customers.
- Document your existing processes. That change management procedure you follow? Write it down. Include who needs to approve what, how you communicate changes, and what happens if something goes wrong.
- Create incident response templates. Standardise how you record incidents, what information you capture, and how you follow up. This isn't about bureaucracy - it's about consistency.
- Establish regular review cycles. Monthly security reviews, quarterly backup tests, annual policy updates. The key is doing them consistently and recording the results.
- Implement approval workflows. Even simple email approval trails are better than verbal agreements that leave no trace.
- Maintain change logs. A simple spreadsheet tracking what changed, when, and why can satisfy most audit requirements.
The goal isn't perfection - it's demonstrable consistency.
Turn Compliance into Competitive Advantage
Here's where it gets interesting - once you've got your compliance documentation sorted, it becomes a powerful tool throughout your entire customer lifecycle.
- Start with prospects during discovery. Ask about their compliance requirements early and position yourself as the MSP who gets it. When you understand their audit cycles, industry requirements, and internal pressures, you can tailor your approach from day one.
- Include compliance capabilities in your proposals. Instead of waiting for prospects to ask about your processes, proactively include summaries of your compliance readiness. Show them your documented change management process, incident response procedures, and how you handle post-incident reviews.
- Build it into your customer welcome pack. New customers should receive your escalation matrix, RACI charts, service descriptions, and evidence of your structured processes as standard. This isn't just about compliance - it sets clear expectations for how they'll work with you day-to-day and what level of professionalism they can expect.
- Reset expectations when audit season arrives. When your customer mentions an upcoming audit, you're ready. You know exactly what documentation to provide, who their auditors might want to speak with, and how to respond quickly to those tight-deadline requests that always seem to come on a Friday afternoon.
- Use it for ongoing relationship management. During regular service reviews, reference your compliance documentation as evidence of the professional service they're receiving. It reinforces the value you're providing beyond just fixing things when they break.
The MSPs who treat compliance as part of their customer experience strategy - from first conversation through ongoing service delivery - are the ones winning the bigger contracts and keeping customers longer.
Building Long-Term Compliance Capability
Once you've got the basics documented, you can build towards more formal compliance:
- Risk assessment processes - Regular reviews of potential threats and how you're mitigating them.
- Training records - Evidence that your team knows and follows your procedures.
- Regular audits - Internal reviews to ensure processes are being followed consistently.
- Continuous improvement - Documented evidence that you're learning from incidents and improving your processes.
- Client communication - Clear documentation of how you communicate with clients about changes, incidents, and improvements.
This isn't about becoming a compliance consultancy - it's about running your MSP in a way that naturally generates the evidence clients need.
When You're Not Ready (Yet)
If a client asks for compliance evidence you don't have, honesty is your best policy:
"We're currently formalising our documentation to meet increasing compliance requirements. Can you give us [specific timeframe] to provide the evidence you need?"
Most clients will appreciate transparency and give you reasonable time to get organised. Use that time wisely.
The Real Cost of Not Being Ready
I've seen MSPs lose significant clients because they couldn't provide compliance evidence when asked. Not because their processes were poor, but because they couldn't prove their processes were consistently followed.
The cost isn't just the lost client - it's the reputation impact and the scramble to get compliant under pressure.
Building compliance readiness into your operations from the start is far easier than retrofitting it when a client demands evidence by Friday.
Compliance isn't about ticking boxes - it's about proving that your processes are consistent, documented, and actually followed. Get this right, and you'll find it becomes one of your strongest competitive advantages.
Take Action Today
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Remember: Success isn't about working harder—it's about working smarter. Focus on what matters, ditch the chaos, and get stuff done with a structured approach to Service Improvement.