In relation to the global finance, the outlook for MSP industry looks very promising in the new year. The pandemic has shown small and medium sized businesses how vital digitalization has to run their business safely and effectively. It became clear that not only does technology help to cope with today’s financial challenges, it is also their best weapon against a recession.
As the industry invests more in technology and rely on MSPs to meet their essential needs, MSPs will thrive. Experts see strong growth, profit expansion and more opportunities for MSPs to not only serve the sector, but also move into larger sized businesses. There they can help to supplement or replace internal IT resources by offering greater speed, efficiency and effectiveness compared to small, IT teams.
How Has The Pandemic Changed The MSP?
As a result of the pandemic, competition for MSPs has never been greater. Sales and marketing is more critical than ever to its success. Although SMEs spend more on IT, there is more competition for budgets. In tough financial times, companies need to increase the value of every dollar spent so they have to bargain harder. As a result, there is increased pressure on the MSP industry from their customers to provide better work at a better price.
MSPs who have strong sales and marketing capabilities have a significant advantage. Many MSPs focus on providing the greatest digitalization. MSPs need to sell better – to both new and existing customers. They also need to help their customers stay one step ahead of the constantly evolving IT requirements in order to survive in this new market.
The price pressure will be a big challenge for MSP industry in the next year, especially as the experts will reach their limits to be as efficient as possible. The profitability of the MSP business is often based on the productivity. So MSPs need to take a close look at their technology stack.