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The growth of a Managed Service Provider ( MSP ) usually follows a distinct pattern . It starts with a modest number of customer accounts and a high ratio of support agents , essentially overservicing the customer to make sure they stay satisfied and have no reason to go elsewhere . Most of the tasks and processes remain manual and laborious but , in recognition of the error-prone nature of working in this way , the team is dedicated to fixing any problems immediately and demonstrating fast response times .
The small MSP will typically run disparate internal systems and applications to serve those customers and although this means effort is often duplicated , it ’ s not operating at full capacity , so the situation is manageable , although far from efficient . The objective is to serve the customer in any way they can , which may include a high level of customisation to meet specific customer needs . This may even develop into a deep understanding of one or a small number of industry sectors .
However , as the MSP grows and acquires more customers , it becomes apparent that over-servicing each one will start to put the engineering and support teams under significant pressure , which will negatively impact their performance . Maintaining the standard of service established with early customers would require a significantly sized engineering operation that would have to grow exponentially in line with customer demand . This operating model is simply not affordable or sustainable . examining its portfolio of services , customer reviews and success stories . However , customers want to work with MSPs that also use the latest technology , tools and software solutions to run their business internally . It ’ s simply not enough to offer the latest products and services . Internal factors are so important that they are considered of equal importance to understanding an MSP ’ s pricing structure and value proposition .
How Digital Transformation can ease the burden
There are many operational and financial performance benefits to Digital Transformation for companies in all industry sectors , but especially for tech service providers . Perhaps the most significant improvement is the ability to stay ahead of the competition .
By embracing new technologies and implementing more efficient automated processes , service providers can differentiate themselves , offering clients better and more innovative services with an unmatched customer experience . Improving efficiency by adopting a scalable and integrated operating model that embraces service automation helps reduce costs , while improving service levels , resulting in high levels of client satisfaction . It is also a pathway to sustained profitability for the long term , because as the business continues to grow its customer base , it no longer has to exponentially increase costs to serve them .
Changing ways of working by streamlining processes and automating tasks have huge benefits for tech service providers . According to research from MIT , digitally mature organisations are 26 % more profitable than their less mature peers . Yet , while MSPs make it their business to advise clients on their digital strategies , it ’ s clear they also need to adopt the same practices in-house , if they haven ’ t already .
How customers drive the need for change
Savvy customers frequently assess MSPs on their level of digital maturity before buying from them . Customers put a significant focus on the quality of their experience and according to Forrester , companies that lead in customer experience outperform competition by nearly 80 %.
The technological capabilities of an MSP can be better understood by prospecting customers by
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