Published on January 24, 2023
POPX & Larato offer insights into how Smart MSPs will adapt to be more competitive in a challenging year ahead
POPX, a specialist in digital transformation for Managed Service Providers (MSPs) and tech market insight and business development experts Larato expect to see more collaboration among MSPs to provide a single source of supply to customers. Agility will also be a key driver for the MSP community in the face of a challenging economic climate.
Whilst every service provider will have a strategy relative to their specific situation, there are several common themes gaining traction: coopetition, agile operations, and service automation.
Coopetition with other MSPs
Partnerships with other MSPs help to expand geographical reach or expertise in specific areas, such as new product and consultancy services. This allows service providers to offer a one-stop shop for their clients. This is supported by recent research from Larato, which found that 77% of business leaders had prioritised the need to streamline their organisation’s technology supply chain*.
Dr Lucy Green, CEO at Larato says; “We believe that ‘Coopetition’ is a way for MSPs to meet this need without over-extending their portfolio or scaling too quickly without the right expertise. Coopetition involves teaming up with other providers to offer a broader portfolio of solutions with limited risk. This is a fast and cost-effective way for MSPs to become more attractive to organisations looking to consolidate their technology supply chains and we think given limited budgets, cost-cutting exercises and a skills shortage, that Smart MSPs will head this way.”
Agile operations will be key
It will be difficult for MSPs to predict how 2023 will play out with negative reports of a recession, or at least a flatlining economy. To successfully navigate the unpredictability, businesses will need to remain agile and ready to change course at short notice. That is why MSPs need to take a critical view of their IT systems, tooling and processes to streamline operations and optimise resources.
Jason Briscoe, Chief Operations Officer at Arrow Business Communications, says: “There will always be some degree of market volatility, but we have learned to be the architects of our destiny by embracing every situation and looking for the relevant opportunities to our business. Many of the answers to our challenges come from looking within and asking how we can make things better for our customers. Whether that involves transforming our operations, adding new services, upskilling our people, partnering with a third party, or acquiring a competitor, there is always something to be done. We know we can adapt to most situations by being analytical and agile.”
Improve customer support through service automation
Customer support is a critical aspect of the service customers are paying for, and nothing frustrates a business owner more than an unresponsive service provider.
In the Larato research, 43% of business leaders surveyed wanted more responsive and reliable support, despite the challenges of key skills shortages faced by MSPs. Dr Green continues: “We believe that one of the key opportunities for MSPs to increase and improve customer support in a scalable way is to adopt more automated processes, freeing up team members to engage with customers where needed, but also enabling self-serve options for customers with smaller, less complex tasks. Given that 62% of the businesses we surveyed are already looking at automation for their own needs, the expectation will be for service providers to follow suit.”
Martin Ford, CEO at POPX concludes: “Although 2023 will no doubt present economic challenges, there are positive actions that Smart MSPs are taking that can help mitigate some obstacles and set the business up to perform well despite stressed conditions. Only time will tell how the market will fair but talking to our MSP clients, we continue to see intelligently ambitious strategies. These service providers are willing to invest in their futures to ensure they can quickly integrate acquired companies and have the reliable service operations that can scale cost effectively to support a growing customer base with the best customer service and satisfaction possible. Our outlook for 2023 is that it will continue to demonstrate that doing the right things will, as always, continue to deliver success.”
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