30 Aug MSP Trends & Predictions
At Revenue Rocket a fair amount of our clients fit into the category of managed service providers or MSP’s as we in the industry refer to them. The category focuses on providing business and enterprise clients with predictable and scalable solutions for managing all facets of information technology (IT) within their corporate ecosystem. That said, the services supported by one MSP over the other can vary dramatically, and depending on the markets they serve, so can the domain knowledge and experience, which is equally important when it comes to selecting a partner.
In 2020 & 2021 we saw major shifts back to the MSP model from all sizes of businesses as the world shifted to an online and remote workforce during the pandemic. Those trends continued into the second and third quarters of 2021 as America struggled to staff internal support functions such as internal IT teams as the job swap was in full swing and the workforce was not ready to return to the office just yet. Fast forward to today and we have seen a lot of enterprises and SMB turn to outsourcing these functions to MSPs in an effort to standardize processes, create predictability and reliability across the organization’s technical infrastructure. In fact, more than 27% of all IT services provided in America are now provided by outsourced MSPs. Thats up 4.1% from year over year!
For these reasons and others we will talk about shortly, the MSP boom is in full swing as providers are looking to cross industries (Healthcare to manufacturing…), looking to expand service offerings and solutions (cloud, desktop support, security…) and looking to create economies of scale to maintain market relevance during yet another round of consolidation.
Here are a few interesting trends and stats we have seen in the last 12 or so months:
- Managing the continued migration to cloud and the complexities that come with it
- Enabling the work from home / anywhere workforce
- Hyper automation among key functions such as employee onboarding/offboarding
- Virtual service delivery (online tools and enablement) – Zoom era
- AI and machine learning shift from buzz words to real world value
- Implementation and management of cyber security solutions
- New age testing and implementation of augmented reality (AR) and virtual reality (VR) solutions. 64% of brands have started to test the effectiveness of these solutions in the past 2 years.
- Expansion of VoiP solutions for staff connectivity outside of the four walls
- MSPs Interest in selling increased from 15% to 27% from 2019 to 2021
Needless to say, the accelerations seen as a byproduct of the pandemic have positively influenced the valuations and dependency on our MSP clients and the increased need to stay relevant through this most recent consolidation phase is front and center in many of our conversations. If you are an MSP looking to better understand how to grow your business and potentially join forces with one of our many representative clients on both the buy and sell-side please contact us at www.revenuerocket.com/contact-us