‘Never-Before’ Opportunity for Managed Service Providers (MSP), It’s Time To Act!
The COVID-19 pandemic has shown a devastating impact on the businesses, globally.
IT is one of the critical industries hit severely by the interrupted business activity and stalled crucial projects.
Among various segments of the technology industry, solutions and service providers are witnessing the heat of the pandemic.
COVID-19 Impact on Managed Services
An exclusive survey around the COVID-19 impact on managed services calculated the comparison between quarterly bookings on technology.
Wherein the respondents report a decline in overall technology bookings compared to year-on-year.
Two-third of respondents report a decline in on-site technology services. At the same time, less than one-third of them say that remotely delivered services have been affected.
However, the forecast for remotely delivered services takes an upward trend. The demand for remote working favors it due to the COVID-19 crisis.
An Opportunity for MSPs
Two-thirds of Managed Service Providers (MSPs) do not see any negative impact of the COVID-19 crisis on their business, while 10 percent of Educational Services providers and 15 percent of Professional Service Providers do see some impact.
This scenario around IT services’ revenues and technology bookings reflects in the industry’s overall value proposition.
More than three-fourths of the survey respondents feel the current crisis is an opportunity to enhance the value proposition of managed services.
More than 76 percent of respondents feel that the crisis would open ways for customers to explore subscription-based, scalable, reliable, and managed solutions.
The dependence on managed services and solutions is majorly driven by organizations’ growing inclination towards core business activities like continuity and risk management, among others.
The majority of the Managed Service Providers are reportedly planning to increase their overall headcount while only a few of them are thinking about ‘cut-down’ given the current crisis.
Remote Services on The Demand
Currently, 80 percent of the managed services are remote deliverables, while 20 percent are on-site.
Adding to the demand, 50 percent of the survey respondents express their willingness to invest in remote work solutions, in response to the COVID-19 crisis.
Overall,
- Managed Services report a less COVID-19 impact compared to other technology-related sectors
- The COVID-19 crisis gave room for further enhancement of the Managed Service value proposition
- Cancellations of existing contracts do happen but at a less rate
- MSPs are planning to invest more in remotely delivered services
What’s Next?
At this juncture, two core principles stand core to the success of a ‘Managed Service Provider (MSP)’
Improve Pace of Operations
Over the period, Managed Services (MS) business has commonly been driven by marketing strategies.
If you have been in this business relentlessly trying to tap the potential across verticals, it’s time to focus more and increase your operations’ pace!
Now, there exists an increased demand for your services from various industries. As the experts say, there is no better time than now to unleash the market potential.
If you have been a trusted partner to your clients, apply the technique on a broader scale as the companies are looking for you now!
Experts say the MS value proposition looks more relevant now and urgent than ever!
Get your sales and marketing teams to touch all possible channels to get the best out of the current demand.
It’s time to up your marketing investments and reframe your go-to-marketing approach around managed services.
[Also Read: Managed IT Services To Be ‘USD 329 Bn’ Market by 2025]
Gear Up For The Next!
If you have been struggling around some processes, it’s time you need a different approach. Move beyond just responding to the constant stream of urgent challenges and start being proactive towards resolving them.
Think beyond the next few months and address the bottlenecks across your technologies and verticals.
This kind of opportunity will not come back for MSPs, say experts, as they suggest business leaders take a pause and be reassessed to stay ahead in the competition by the time things come back to normal.
Assess, add, optimize, and do whatever necessary to up your organizational capabilities.
Accelerate your digital transformation efforts, build your managed service and related capabilities, and let your teams be more potent than before.
Veritis Managed Services: PowerPoint PPT
It’s the Time to Act!
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