The future is hybrid for most. According to 451 Research, 57% of enterprise clients are moving toward a hybrid IT environment. The increasing complexity of these environments is forcing service providers to evaluate the efficiency of their service operations and the ability to support growth and scale. This has led to 93% of service providers saying they require some amount of transformation to support the business over the next three years.
There is no magic pill
Each MSP business has its unique challenges and opportunities. For instance, 73% of MSPs are attempting to address scale. However, service providers confuse scalability with adding more – more technology, more processes, more employees, more management layers, and the list goes on. The need to be more cost-effective still remains a common pain point for customers – 37% of customers feel that they must focus on curbing OpEx costs. Another pressing issue is the lack of agility and flexibility.
Some of the service providers have also put their bets on picking the right tools, enabling service reliability, and cutting costs. So, there is no cookie-cutter approach to creating efficiencies.
Service providers must transform along with their customers and find new points of differentiation in a crowded marketplace.
MSPs must not use a one-size-fits-all approach. However, one of the go-to-strategies for MSPs has been to implement tailor-made solutions for each client. It’s definitely crucial for a business to offer custom solutions based on the client’s needs, but service providers should leverage services that don’t compel them to re-invent the wheel every time. To enable growth and efficiency, service providers can leverage products and solutions that are devised to provide scalability as well as profitability.
Automation is precious
Achieving scalability in a cloud-first digital economy isn’t going to be easy. Supporting growth and managing complexity at the same time has been haunting MSPs. Also, engineers are preoccupied with high alert volumes and other routine tasks that make optimizing service operations exceedingly tricky. Inefficient processes and systems, use of disparate toolset, and an influx of noise and alerts continue to torment the MSP business – impeding cost-cutting measures and ROI.
NetEnrich’s latest report predicts that automation can go a long way in reducing tool proliferation and enabling complete visibility into every facet of IT operations. Additionally, repeatable and consistent processes are predictable and can be relied upon over time. Furthermore, by increasing the number of devices per technician, MSPs can get rid of a substantial chunk of hidden costs.
Year-over-year comparison of the top points of service providers and their customers
Optimizing service operations requires organizational reengineering, developing repeatable end-to-end processes, and simplifying complex workflows and procedures. This takes time and dedication because it is not just a one-time event. Successful service providers recognize that many of the strategies, processes, and practices that got them to where they are can also prevent them from profitably growing beyond their current state.
For more insights, please read our research report on ‘Service Operations Inefficiency is a hurdle for MSPs,’ which can be downloaded here.