Cloud Engineer Outsourcing for MSPs – A Full Guide

The demand for seamless, scalable, and secure cloud solutions is at an all-time high, pushing MSPs to seek innovative strategies to perform better. Enter cloud engineer outsourcing – a hiring method that enables MSPs to offer comprehensive cloud services without the burden of maintaining an extensive, in-house team of cloud engineers.

In this comprehensive guide, we’ll explore the ins and outs of cloud engineer outsourcing – from understanding the pivotal roles of outsourced cloud engineers to identifying the right partners and preparing for seamless integration.

Introduction to Cloud Engineer Outsourcing for MSPs

Understanding Cloud Engineer Outsourcing

Cloud engineer outsourcing involves engaging external professionals or teams who specialize in cloud technologies to support an MSP’s (Managed Service Provider) operations. This practice enables MSPs to offer comprehensive cloud services without the need to maintain a large, in-house team of cloud engineers. The outsourcing model can include hiring freelance cloud engineers or, more commonly, partnering with outsourcing firms like Scaled.

Key functions of outsourced cloud engineers for MSPs include:

• Cloud Architecture Design: Crafting tailored cloud infrastructures that meet the specific needs of MSP clients, ensuring scalability, security, and efficiency.
• Cloud Migration Services: Executing the seamless transition of client data, applications, and workloads from on-premises systems or other cloud environments to new cloud platforms.
• Cloud Security Implementation: Establishing and maintaining robust security protocols to safeguard client data and applications in the cloud.
• Cloud Automation and Optimization: Automating cloud operations to enhance efficiency and reduce costs, while continually optimizing performance and resource utilization.
• Ongoing Support and Maintenance: Providing continuous monitoring, support, and maintenance to ensure the reliability and performance of cloud environments.

Why MSPs Should Consider Outsourcing Cloud Engineers

Access to Specialized Cloud Expertise

MSPs often handle diverse client needs, requiring proficiency across multiple cloud platforms (such as AWS, Azure, and Google Cloud). Outsourcing cloud engineers gives MSPs immediate access to experts with deep, platform-specific knowledge. This ensures that MSPs can offer sophisticated, multi-cloud solutions tailored to their clients’ diverse requirements.

Cost-Effective Resource Allocation

Outsourcing cloud engineers helps MSPs manage costs more effectively. Rather than incurring the high expenses of recruiting, training, and retaining full-time cloud engineers, MSPs can leverage outsourced professionals on a project-by-project basis. This model reduces overheads and aligns costs directly with service demand, enhancing financial flexibility.

Enhanced Scalability and Agility

MSPs frequently face fluctuating workloads, driven by client projects and market demands. Outsourcing provides the agility to scale engineering resources up or down quickly. This flexibility is crucial for MSPs to handle peak demands, such as during major client migrations or implementations, without the delays associated with hiring and onboarding full-time staff.

Focus on Core MSP Competencies

By outsourcing cloud engineering tasks, MSPs can concentrate on their core competencies, such as client relationship management, strategic planning, and service innovation. This focus enables MSPs to enhance their value proposition, offering clients more personalized and strategic IT services, while relying on outsourced engineers for technical execution.

Preparing for Cloud Engineer Outsourcing

Identifying Your MSP’s Needs

Assess Current Capabilities and Gaps

Begin by conducting a thorough assessment of your current cloud capabilities and identifying any gaps. Evaluate your in-house team’s skills, existing projects, and upcoming client demands. Consider questions like:

• What cloud platforms and services do we currently support (AWS, Azure, Google Cloud, etc.)?
• Which cloud-related tasks are we struggling with or unable to fulfill?
• Are there specific client projects that require advanced cloud expertise we lack?

Determine Specific Roles and Responsibilities

Identify the specific roles and responsibilities you need outsourced cloud engineers to fill. This might include:

• Cloud Architects: For designing and implementing cloud solutions.
• Cloud Security Experts: To ensure robust security measures.
• Cloud DevOps Engineers: To automate and optimize cloud operations.
• Cloud Support Specialists: For ongoing maintenance and troubleshooting.

Understanding these roles will help you find the right talent to meet your needs.

Identify Required Skills and Expertise

List the specific skills and expertise required for each role. For example:

• Cloud Architects: Proficiency in multi-cloud environments, knowledge of cloud-native architecture, and experience with containerization technologies like Kubernetes.
• Cloud Security Experts: Expertise in cloud security best practices, familiarity with compliance standards (such as GDPR, HIPAA), and experience with security tools like IAM and firewall configurations.
• Cloud DevOps Engineers: Skills in automation tools (like Terraform, Ansible), continuous integration/continuous deployment (CI/CD) pipelines, and monitoring tools.
• Cloud Support Specialists: Strong troubleshooting skills, knowledge of cloud management platforms, and experience with customer support.

Creating a Detailed Job Description

Define the Role Clearly

Create a clear and concise job title that accurately reflects the role’s primary responsibilities. For example, “AWS Cloud Architect” or “Azure DevOps Engineer.” Avoid vague titles that might attract candidates with irrelevant skills.

Outline Key Responsibilities

List the core responsibilities of the role in detail. For example:

• AWS Cloud Architect:
  • Design and implement scalable AWS cloud solutions for clients.
  • Develop cloud migration strategies and oversee their execution.
  • Ensure compliance with security and governance policies.
  • Optimize cloud costs and performance through best practices.

Specify Required Skills and Qualifications

Clearly state the required skills, certifications, and experience. For example:

• AWS Cloud Architect:
  • AWS Certified Solutions Architect – Professional.
  • 5+ years of experience in designing and implementing AWS solutions.
  • Proficiency in AWS services (EC2, S3, RDS, Lambda, etc.).
  • Experience with infrastructure as code (IaC) tools like Terraform or CloudFormation.
  • Strong understanding of security best practices and compliance requirements.

Highlight Preferred Skills and Attributes

• AWS Cloud Architect:
  • Experience with multi-cloud environments.
  • Strong problem-solving and analytical skills.
  • Excellent communication and client-facing skills.

Budgeting for Cloud Engineer Outsourcing

Determine Budget Parameters

Establish a clear budget for outsourcing cloud engineers. Consider factors such as the scope of work, duration of the project, and the expertise required. Your budget should account for:

• Hourly Rates or Fixed Fees: Depending on whether you hire freelancers, contractors, or outsourcing firms, you’ll need to budget for their compensation. Research industry standards to set realistic rates.
• Project-Based Costs: For specific projects, consider fixed fees based on the project’s complexity and duration.
• Retainer Fees: If you plan to maintain ongoing relationships with outsourced engineers, consider retainer fees for continuous support.

Consider Additional Costs

In addition to the direct compensation, account for any additional costs that may arise, such as:

• Software and Tools: Budget for any software licenses, tools, or platforms that the outsourced cloud engineers might need.
• Training and Onboarding: Allocate funds for initial training and onboarding to ensure the outsourced engineers are familiar with your systems and processes.
• Communication and Collaboration Tools: Consider the costs of communication tools (like Slack, Zoom) and project management platforms (like Jira, Asana) to facilitate collaboration.

Evaluate Cost-Benefit

Conduct a cost-benefit analysis to ensure outsourcing aligns with your financial goals. Compare the costs of outsourcing against the potential benefits, such as:

• Cost Savings: Calculate potential savings from not having to hire full-time employees, including salaries, benefits, and overhead.
• Increased Revenue: Estimate the potential revenue increase from improved service offerings, faster project completion, and enhanced client satisfaction.
• Risk Mitigation: Consider the financial impact of mitigating risks through access to experienced cloud engineers.

Finding the Right Cloud Engineer Outsourcing Partner

Researching Potential Partners

Define Your Criteria

Start by clearly defining the criteria for your ideal outsourcing partner. This should be based on your MSP’s specific needs and the roles you need to fill. Key criteria may include:

• Expertise in specific cloud platforms (AWS, Azure, Google Cloud).
• Proven track record with similar MSP projects.
• Certifications and industry recognitions.
• Ability to scale resources based on project demands.
• Availability of support and maintenance services.

Identify Potential Sources

Look for potential outsourcing partners through various sources:

• Industry Directories: Explore directories like Clutch, G2, and Upwork to find outsourcing firms and freelancers with strong reviews and ratings.
• Professional Networks: Utilize your professional network and industry associations to get recommendations for reliable outsourcing partners.
• Conferences and Events: Attend cloud computing and MSP conferences to meet potential partners and learn about the latest industry trends.
• Online Communities: Engage with online communities, forums, and social media groups focused on cloud computing and MSPs. These platforms can provide insights and recommendations.

Conduct Initial Research

Gather information about potential partners by:

• Reviewing Websites and Portfolios: Examine their websites, case studies, and portfolios to understand their expertise and past projects.
• Reading Reviews and Testimonials: Check client reviews and testimonials to gauge their reputation and client satisfaction.
• Assessing Technical Expertise: Look for evidence of technical expertise, such as blogs, whitepapers, and participation in industry webinars or forums.

Evaluating Candidates and Providers

Conduct Detailed Interviews

Schedule interviews with shortlisted candidates to evaluate their suitability. Prepare a comprehensive list of questions to cover:

• Can you describe a recent project where you implemented a multi-cloud solution for an MSP?
• How do you ensure compliance with security standards like GDPR and HIPAA in cloud environments?
• What project management tools do you use to ensure timely delivery and quality assurance?
• Can you provide examples of how you managed a complex cloud migration project?
• How do you handle sudden increases in workload or urgent project demands?
• Can you provide on-call support or additional resources during peak times?
• How do you ensure effective communication with remote teams and clients?

Request Detailed Proposals

Ask potential partners to submit detailed proposals outlining their approach to your project. The proposal should include:

• Scope of Work: A clear description of the tasks and responsibilities they will handle.
• Timeline: A realistic timeline for project milestones and completion.
• Cost Estimates: Detailed cost estimates, including hourly rates, project fees, and any additional expenses.
• Deliverables: Specific deliverables and success criteria for the project.

Assess Cultural Fit

Evaluate the cultural fit between your MSP and the outsourcing partner. This includes:

• Work Ethic and Values: Ensure their work ethic and values align with your MSP’s culture and client service philosophy.
• Communication Style: Assess their communication style to ensure it matches your team’s preferences and expectations.
• Problem-Solving Approach: Understand their approach to problem-solving and handling challenges to ensure compatibility with your team’s dynamics.

Checking References and Past Work

Request References

Ask for references from past clients who have similar needs to your MSP. When contacting references, inquire about:

• Project Scope and Duration: Understand the nature and duration of the projects they worked on.
• Quality of Work: Assess the quality of the cloud engineering services provided.
• Reliability and Timeliness: Evaluate the reliability and timeliness of the outsourcing partner.
• Communication and Collaboration: Get feedback on the partner’s communication and collaboration practices.
• Problem Resolution: Ask how the partner handled any issues or challenges that arose during the project.

Review Case Studies and Past Work

Examine case studies and examples of past work to verify their expertise and success in similar projects. Look for:

• Relevance to Your Needs: Ensure the case studies are relevant to the services you require and the cloud platforms you use.
• Technical Challenges and Solutions: Understand the technical challenges they faced and the solutions they implemented.
• Client Outcomes: Assess the outcomes and benefits achieved for their clients, such as improved performance, cost savings, or enhanced security.

Conduct a Trial Project

Consider starting with a small trial project to evaluate the outsourcing partner’s capabilities and fit. This allows you to:

• Test Their Skills: Assess their technical skills and expertise in a real-world scenario.
• Evaluate Collaboration: Observe their communication and collaboration practices firsthand.
• Verify Reliability: Ensure they can deliver quality work on time and within budget.

Onboarding and Integration

Onboarding Process for Outsourced Cloud Engineers

Define Onboarding Plan

Create a comprehensive onboarding plan to familiarize outsourced cloud engineers with your MSP’s processes, systems, and culture. The plan should include:

• Introduction to MSP: Provide an overview of your MSP’s history, mission, and values.
• Project Overview: Explain the goals, scope, and timeline of the project the engineers will be working on.
• Access and Permissions: Set up necessary accounts, permissions, and access to relevant systems and tools.
• Documentation and Training: Provide access to documentation, training materials, and resources necessary for the project.
• Introduction to Team: Introduce the outsourced engineers to key team members and stakeholders they will be working with.

Technical Onboarding

Ensure that outsourced cloud engineers receive proper technical onboarding to familiarize them with your MSP’s cloud environments, tools, and processes. This may include:

• Platform Familiarization: Provide training on the specific cloud platforms and tools used by your MSP (e.g., AWS, Azure, Google Cloud).
• Environment Setup: Assist with setting up development environments, accessing repositories, and configuring development tools.
• Code Review and Standards: Review coding standards, best practices, and project-specific guidelines to ensure consistency and quality.

Project-Specific Training

Offer project-specific training to ensure outsourced engineers understand the project requirements, objectives, and deliverables. This may involve:

• Client Background: Provide insights into the client’s business, industry, and specific needs.
• Project Documentation: Review project documentation, requirements, and architecture diagrams.
• Client Communication Guidelines: Discuss communication protocols, client expectations, and reporting mechanisms.

Integrating Outsourced Engineers with In-House Teams

Foster Collaboration

Encourage collaboration and teamwork between outsourced engineers and in-house teams to maximize productivity and synergy. Strategies for integration include:

• Regular Team Meetings: Schedule regular team meetings to facilitate communication, share updates, and address challenges.
• Cross-Functional Collaboration: Encourage collaboration across different departments and teams to leverage diverse expertise and perspectives.
• Pair Programming: Pair outsourced engineers with in-house team members for collaborative problem-solving and knowledge sharing.

Establish Roles and Responsibilities

Clearly define roles and responsibilities for both outsourced engineers and in-house team members to avoid duplication of efforts and ensure accountability. This involves:

• Role Clarity: Clearly outline the responsibilities of each team member, including outsourced engineers, to avoid ambiguity.
• Task Allocation: Assign tasks and projects based on each team member’s strengths, expertise, and availability.
• Feedback Mechanisms: Establish feedback mechanisms to provide constructive feedback and evaluate performance regularly.

Encourage Knowledge Sharing

Promote knowledge sharing between outsourced engineers and in-house teams to facilitate learning and skill development. Strategies for knowledge sharing include:

• Documentation: Encourage outsourced engineers to document their work, processes, and findings to share with the team.
• Training Sessions: Organize training sessions and workshops to exchange knowledge and expertise on relevant topics.
• Community of Practice: Create a community of practice where team members can share insights, challenges, and best practices related to cloud engineering.

Establishing Clear Communication Channels

Define Communication Protocols

Establish clear communication protocols to ensure effective and timely communication between outsourced engineers and in-house teams. This includes:

• Communication Tools: Determine which communication tools (e.g., email, Slack, Microsoft Teams) will be used for different types of communication.
• Response Times: Set expectations for response times to emails, messages, and other forms of communication.
• Meeting Schedule: Define the frequency and format of team meetings, stand-ups, and status updates.

Designate Points of Contact

Identify points of contact within both the outsourced team and the in-house team to serve as liaisons for communication and coordination. Points of contact should:

• Facilitate Communication: Serve as the primary contact for resolving issues, sharing updates, and coordinating tasks.
• Provide Support: Offer assistance and guidance to team members as needed, acting as a resource for troubleshooting and problem-solving.

Establish Reporting Mechanisms

Implement reporting mechanisms to track progress, address concerns, and ensure transparency throughout the project. This may include:

• Regular Status Reports: Require outsourced engineers to provide regular status reports on project progress, tasks completed, and any challenges encountered.
• Issue Tracking System: Use an issue tracking system (e.g., Jira, Trello) to log and prioritize tasks, bugs, and feature requests.
• Feedback Loops: Establish feedback loops to gather input from both outsourced engineers and in-house teams on project performance and areas for improvement.

Managing Outsourced Cloud Engineers

Setting Up Performance Metrics and KPIs

Identify KPIs

Select KPIs to measure the performance and effectiveness of outsourced cloud engineers. Relevant KPIs may include:

• Project Timelines: Measure adherence to project timelines and deadlines.
• Quality of Deliverables: Assess the quality of work delivered by outsourced engineers, including code quality, documentation, and adherence to coding standards.
• Client Satisfaction: Gather client feedback and satisfaction scores to evaluate the outsourced team’s performance.
• Utilization and Efficiency: Monitor resource utilization and efficiency to ensure optimal use of resources.

Implement Performance Tracking Mechanisms

Utilize tools and systems to track and monitor the performance of outsourced cloud engineers. This may involve:

• Time Tracking Tools: Use time tracking software to monitor time spent on tasks and projects.
• Task Management Systems: Implement task management systems (e.g., Jira, Asana) to track progress, assign tasks, and measure productivity.
• Performance Reviews: Conduct regular performance reviews to provide feedback, assess progress, and identify areas for improvement.

Ensuring Quality Control

Establish Quality Standards

Define clear quality standards and best practices that outsourced cloud engineers are expected to adhere to. This includes:

• Coding Standards: Establish coding standards and guidelines to ensure consistency and maintainability of code.
• Documentation Requirements: Specify documentation requirements for code, architecture, and project processes.
• Testing and QA Processes: Implement testing and quality assurance processes to identify and address bugs and issues.

Conduct Code Reviews

Regularly conduct code reviews to ensure compliance with quality standards and best practices. This involves:

• Peer Reviews: Assign peer reviewers within the outsourced team and in-house teams to review code changes and provide feedback.
• Feedback Loop: Establish a feedback loop to address issues identified during code reviews and ensure continuous improvement.

Implement Continuous Integration/Continuous Deployment (CI/CD)

Implement CI/CD pipelines to automate testing, deployment, and delivery processes. This ensures:

• Faster Release Cycles: Accelerate the release of new features and updates by automating the deployment process.
• Improved Quality Assurance: Reduce the risk of errors and defects by automating testing and validation processes.

Maintaining Security and Compliance

Ensure Compliance with Security Standards

Ensure that outsourced cloud engineers adhere to security standards and compliance requirements. This includes:

• Data Protection: Implement measures to protect sensitive data and ensure compliance with data protection regulations (e.g., GDPR, HIPAA).
• Access Control: Control access to cloud resources and sensitive information to prevent unauthorized access.
• Security Audits: Conduct regular security audits and assessments to identify vulnerabilities and ensure compliance.

Provide Security Training

Offer security training and awareness programs to outsourced cloud engineers to educate them about security best practices and protocols. This involves:

• Security Awareness Training: Provide training on common security threats, phishing attacks, and security hygiene practices.
• Compliance Training: Educate outsourced engineers about relevant compliance regulations and requirements to ensure adherence.

Implement Security Monitoring and Incident Response

Implement security monitoring tools and processes to detect and respond to security incidents promptly. This includes:

• Security Monitoring Tools: Utilize security monitoring tools to monitor cloud environments for suspicious activity and anomalies.
• Incident Response Plan: Develop and document an incident response plan outlining procedures for responding to security incidents effectively.

Conclusion

By outsourcing cloud engineering tasks, MSPs gain immediate access to specialized knowledge across various cloud platforms, ensuring tailored solutions that precisely match client needs. Additionally, outsourcing enables MSPs to refocus internal efforts on core competencies, fostering innovation and strategic growth initiatives.

However, successful adoption of cloud engineer outsourcing requires careful planning, diligent partner selection, and seamless integration. MSPs must prioritize effective onboarding processes, clear communication channels, and robust collaboration frameworks to maximize the value of outsourced talent. Furthermore, rigorous performance management and stringent security protocols are essential to uphold service quality and safeguard client trust.

And if you are now convinced that your team may benefit from collaborating with an experienced cloud engineer outsourcing partner, don’t hesitate to reach out to Scaled – we’ll make your team smarter, stronger and faster.