What Does It Take to Be a Successful Managed Services Provider (MSP)?

There is no alternative to success, and managed service providers understand this better than anybody since they must constantly innovate in order to give the greatest services and surpass their completion rates.

Simply acting morally correct is insufficient for an MSP provider to succeed in the modern world. Making the appropriate decisions is crucial as well. You stand out from the competitors because of this. An MSP must consider a lot of factors before launching, and it will encounter several obstacles on the way to becoming a reliable choice for other enterprises.

A Managed IT service provider will encounter various hurdles, including understanding how to launch, what to provide, how to bundle and market its services, and selecting MSP tools. But once you’ve established your MSP company, differentiating yourself calls for a completely different strategy.

While msp services are a very common choice for outsourcing among businesses due to their many advantages, MSPs cannot become complacent and assume continued success given how quickly things can change in the worldwide marketplace. The following suggestions can help managed service companies achieve more success than before.

Tips for Becoming a Highly Successful Managed Service Provider

1. Bundled and White Label Managed Service Offers

The most effective managed service providers (MSPs) achieve this by leaving no service gaps and bundling their solutions. MSPs who continue to provide services despite service gaps run the risk of opening the door for a better MSP to take up their share of the business and damage their image. Therefore, the urgent need is to put together a comprehensive package of services tailored to meet the unique requirements of your target market. Later, white labeling these bundles can help you establish your brand rather than the ones of the suppliers you work with.

2. Examine the Present Providers

Managed Service Providers must analyze current vendor contracts and, where possible, evaluate new partners. Making sure you are getting cost-effective, high-quality service assistance for your customers is the goal. As an MSP, you must consider hidden costs when assessing current contracts since they may build up over time.

3. Make an Effort to Drop Bad Clients

Reducing services or doing away with unproductive clients completely might often be the greatest approach to increase profitability. Before making the audacious choice to cut off your relationship with a client, you must be careful, do a thorough study, and ensure that the client in issue has not generated revenue for your business. Find out which clients use the majority of your time using your reporting program, and then list the reasons why. It could be time to advise them to update or discontinue the collaboration in the future if they have been utilizing outdated gear.

4. Become Strong In Cloud Services

Nowadays, everyone is moving to the cloud. Delivering cloud services as part of your various packages adds a ton of value for customers and aids in lead conversion for the sales and marketing teams.

5. Offer High-margin Service Options to Increase Upsell and Cross-selling

The top managed service providers start by providing fundamental services such as remote monitoring, safety, and business continuity. Other services are offered, even though these provide a strong foundation for an MSP’s ongoing revenue generation strategy. In order to manage their hybrid and remote workforces, several customers have turned to offerings like desktop as a service (DaaS) and unified communications (UC). Video surveillance as a service (VSaaS), Mobile device management (MDM), cloud security, and email security are further potential high-margin add-on services. When these services are fully operational, it’s time to cross- and upsell them to your current clientele.

6. Close the Tech Talent Gap

As a result of the current employee-hiring market, there is fierce rivalry for top talent as IT companies compete to hire and keep their top-tier prospects by offering the finest compensation packages. According to our research, one in five Managed Service Providers said that keeping their employees is one of the biggest problems they deal with on a monthly basis.

MSPs must make a financial commitment to career development initiatives and ongoing talent development in order to create a productive workplace where workers feel that their professional and personal growth is supported. This can assist the technical team members in learning new technologies and honing their abilities so they can do their work effectively. 

Additionally, the retention rates will significantly increase when you demonstrate that you are willing to make significant investments in employee career development. According to a Harris Poll poll, 70% of US employees said they are inclined to accept a job offer from another company known for investing in its employees’ career growth and training instead of staying at their current employment.

7. Establish High-rate Entry Points

Many MSPs strive to create high-percentage entry points because their long-term success is heavily dependent on recurring revenue. Some customers are prone to sign an all-inclusive agreement with a new business associate. You should purposefully keep the scope of your services small and avoid assuming control of a large portion of a client’s business right away.

8. Automation of Company Management and Service Provision

You will discover that these changes can cause operational challenges that your present staff may find difficult to manage when your managed services company’s firm adds more offerings to the portfolio and implements cutting-edge solutions for reducing the skill gap. The greatest managed service companies employ the strategy of reducing their technological stack for long-term success since increasing income requires working smarter, not harder.

Client demand for complicated solutions and services will only increase, which means that automation has become the go-to option for running operations more efficiently and with less human interaction. PSA (professional services automation) software such as ConnectWise can help managed service companies decrease interruptions and increase efficiency. 

PSA is used to automate and integrate all apps from a single source. Using a PSA solution to automate activities not only increases worker efficiency but also improves customer experience by bringing responsibility and providing better methods to connect with the employee team.

Final Takeaway,

Since they have to constantly improve their services and surpass their completion rates, managed service providers are the best at understanding that there is no shortcut to success. The eight ideas listed above will function as a catalyst in improving the quality of service given by MSPs and ensuring their long-term success.