According to a report by Fortune Business Insights, the global managed services market size was valued at USD 255.86 billion in 2022 and is projected to grow to USD 671.14 billion by 2030, exhibiting a CAGR of 13.1% during the forecast period. This indicates the growing demand and potential for Managed Services Providers (MSPs) in the future.
However, not all MSPs are created equal. Some stand out from the crowd by demonstrating certain essential characteristics that make them more effective, reliable and valuable to their customers. These traits include a strong plan for future goals, as well as a commitment to continuous improvement. Successful companies prioritize a talented workforce and ways to stay flexible in this ever-changing environment. Additionally, they actively enhance their services to ensure that they are always meeting their clients’ evolving needs.
Well-Defined Strategy
One of the first qualities of a successful MSP is having a clear and documented plan that guides their business decisions and actions. A well-defined strategy helps organizations align their goals, vision and values with their customers’ needs and expectations. It also helps them identify their target market, differentiate their services from competitors and establish their unique value proposition. A documented path also serves as a roadmap for MSPs to plan their resources and metrics, and to track their progress and performance.
By regularly reviewing and updating their strategy, MSPs can stay ahead of the curve and proactively address any challenges or opportunities that arise. This strategic approach allows them to continuously improve their services and stay competitive in the dynamic channel.
Varied Services
Offering a standard and customized range of services that cater to the diverse and evolving needs of their customers is another trait of successful services providers. A catalog provides services providers with a consistent and scalable way to deliver their core offerings, such as network monitoring, backup and recovery, security and cloud management.
A customized portfolio allows MSPs to tailor their solutions to the specific requirements and goals of each customer, such as application development, business process automation or data analytics. By offering both standard and customized services, MSPs can increase their customer satisfaction and loyalty.
Exceptional Staff
Another characteristic of a prosperous company is having specialized and experienced staff that can provide high-quality and professional service to their customers.
A highly trained staff means that MSPs have experts in various domains and technologies, such as cloud, security or AI, who can deliver the best solutions for their customers’ challenges and opportunities.
An experienced workforce means that services providers have seasoned personnel (such as project managers, consultants and engineers) who can work closely with their customers to plan, implement and support their IT projects. By having a qualified and knowledgeable team, MSPs can enhance their credibility and value in the market.
Adaptable Delivery
Having a flexible and scalable delivery model that can adapt to the changing demands and expectations of their customers sets thriving MSPs apart. A versatile delivery model means that companies can offer their services in various modes, such as on-premises, cloud-based or hybrid (depending on their clients’ preferences and needs).
A robust delivery model entails adjusting resources, capacity and performance according to the growth and fluctuations of their client base. MSPs can ensure service availability, reliability and efficiency by utilizing a flexible and scalable delivery approach.
Excellent Financial Management
Successful MSPs have a strong accounting system that can optimize their revenue and profitability. It’s important to monitor and control income and expenses, such as subscription fees, operational costs and investments. It also helps companies analyze and improve their financial performance, cash flow, margins and ROI.
MSPs can sustain and grow their business by forecasting and planning a budget and resources. Having sound financial habits makes it possible to identify and reduce any financial risks, which is crucial.
Standing Out from the Crowd
Managed services providers are essential partners for many businesses that need IT solutions and support. However, not all of them are equally successful. Some MSPs exhibit certain key traits that make them more effective, reliable and valuable to their clients.
These traits include having a well-defined and documented strategy, offering a standard and customized range of services, having a specialized and experienced staff, having a flexible and scalable delivery model and having a strong financial management system. By developing and demonstrating these characteristics, MSPs can achieve greater success in the market.
