In the competitive world of managed service providers (MSPs), profitability remains a top challenge. Craig Pollack, Founder and CEO of FPA Technology Services, and Jeff Borello, CEO of Andromeda Technology Solutions, share their insights on tackling this obstacle and embracing new opportunities in the MSP industry in the latest episode of “Sunny’s Silver Linings” podcast with host and IT By Design CEO, Sunny Kaila.
Profitability has always been a crucial goal for MSPs. Both Craig and Jeff emphasize the importance of long-term client relationships and low employee turnover rates as key drivers of profitability. By focusing on client retention and improving internal efficiency, they have been able to maintain a strong financial position.
Craig highlights the significance of operational efficiency and improved methodologies in reducing the time spent on client projects. By streamlining processes and maximizing resources, MSPs can enhance service quality and increase profitability. Jeff adds that optimizing efficiency can help MSPs handle additional clients without adding more staff, thus reducing labor costs and improving the bottom line.
As the conversation shifts to the impact of AI on the channel in 2023, Craig and Jeff agree that AI has significant potential for MSPs. While current AI applications focus on organizing and disseminating information, the future lies in leveraging AI to empower clients and create self-serving solutions. This shift towards a consultative approach requires MSPs to identify and solve client problems using AI, ultimately improving service delivery and creating value.
Shifting gears, the discussion moves to the challenges of employee engagement in the new workplace landscape post-COVID. Jeff shares his experience of transitioning to remote work and realizing its effectiveness. To address the engagement and performance of remote employees, MSPs need to adapt their management practices, foster open communication, and ensure employees have the necessary tools and support to thrive in the remote work environment.
In summary, MSPs face ongoing challenges in maintaining profitability while adapting to evolving market trends. By prioritizing client retention, operational efficiency, and exploring the potential of AI, MSPs can navigate these challenges and embrace new opportunities. Furthermore, MSPs must recognize the unique considerations of remote work and actively engage and support their employees to foster a productive and fulfilling work environment.
Watch: Navigating Profitability and Embracing AI in the MSP Industry
About Sunny’s Silver Linings Podcast
“Sunny’s Silver Linings” is a top MSP channel podcast hosted by the CEO of IT By Design, Sunny Kaila. Sunny and his guests cover a wide range of MSP- and talent-based topics, including leadership, corporate culture, MSP services, cybersecurity, customer service, talent growth and retention, and strategies to achieve success in the channel. Listen now to take your business to the next level!
You can check out all our episodes here. You can also listen to “Sunny’s Silver Linings” podcast episodes on all the top streaming platforms, including Apple Podcasts, Spotify, Amazon Music, iHeart Radio, etc.
About IT By Design
With more than two decades of experience as a technology services provider—first as an MSP, and then for MSPs—IT By Design (ITBD) helps clients navigate the volatile technical landscape. As the authority on MSP-trained technical talent, it understands the challenges its customers face when recruiting team members. ITBD addresses those issues through many solutions: dedicated staffing, 24x7x365 NOC services, helpdesk solutions, RMM virtual admin, vCIO consulting, security, employee and client engagement software, and professional services. ITBD is headquartered in New Jersey and has facilities in India and the Philippines.