Service providers want to grow revenues, and they want to do it quickly. Vendors, distributors, VARs, system integrators, and others are discovering what many have now known for years – managed services are the key.
The market today is exploding with increased competition for service providers. 451 Research predicts a high rate of business growth and that managed services revenue will exceed $80bn annually by 2022, up from $51bn today. However, most MSPs are facing a critical challenge when it comes to growing their business, the same growth barrier that many have been trying to overcome for years – scalability. 451 Research’s latest report, ‘Scale is the overlooked problem in MSP growth,’ analyzes the factors which drive growth for IT service providers by boosting revenues and profitability.
Healthy MSP Growth is All About Scaling
Managed Service providers are increasing their budgets to address problems associated with their ability to scale.
The initial reaction to address scalability is to always add more – more technology, more employees, more processes, more layers of management.
However, increased input doesn’t translate to higher output, especially as costs for expertise continue to take a more substantial portion of budgets, while operational inefficiencies and complexities continue to increase.
Scalability is about achieving profitable growth, but it becomes an increasingly bigger obstacle as managed service providers grow. The report provides an overview of some of the challenges faced by growing MSPs and the business impact they can enable by eliminating capacity constraints while ensuring continuous reassessment and refinement.