Keeping Up with Managed Service Market Growth
In case you haven’t noticed, the Managed Services market size has been steadily growing for a while now. More specifically, the Managed Services Market growth is expected to top $282 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 9.3%. Part of that growth is being fueled by reduced operational costs and an increase in implementation of big data solutions.
Perhaps your organization hasn’t experienced the benefit of this explosion in growth yet. Perhaps you just aren’t quite sure how to seize this opportunity because you aren’t entirely certain what it is that’s holding you back from growing your managed services practice.
It doesn’t matter if you are new to the managed services model or are a long-established MSP; there are some issues all of us have faced at some point. For example, knowing when to work on the business versus working in the business is an important one. Figuring out how to market and set appointments for your business effectively is huge and you can save yourself a lot of time, stress, and money by figuring out how to do it well early on. You can read more here about successful Managed Services Appointment Setting and Telemarketing Techniques.
With that said, two areas to focus on that will have the most direct impact on how effective your organization operates is staffing and vendor relationships.
The Importance of Making Sound Staffing Decisions
Let’s face it, staffing decisions can be some of the most stressful ones MSPs make for themselves. If you hire someone who turns out to be a bit of a dud, you now have to start the hiring process all over again – which costs time and money. Additionally, you have to figure out the most diplomatic way of terminating that first hire, or any hire really, so as to not waste critical company time and resources.
At the same time, be mindful of your staffing needs throughout the year because you never want to be caught short-staffed, and in today's booming economy good help is hard to find. Always being adequately staffed as necessary means you’ll be able to more effectively manage additional clients and sources of revenue.
When it comes to staffing, just remember it doesn’t have to be such a headache to find the best people to work with. If you ever feel like you haven’t found that perfect fit for your organization, outsourcing is always an option before making a more long-term investment in someone.
Forge Better Vendor Partnerships
It’d be nice if MSPs had the luxury of being incredibly picky in regards to vendors they choose to do business with. Unfortunately, that is not always the reality of the situation, so you make that lemonade we hear so much about. However, there are steps you can take to ensure vendors you decide to do business with are a better fit across the board.
The right vendors will help any great MSP grow, so before agreeing to any vendor relationship you need to make sure their way of doing business meshes well with your own. It’s no fun when you are constantly bumping heads with anyone, especially vendors you rely on for quality products and services.
Another key thing you’ll want in a good vendor is flexibility. This means flexibility in pricing and billing, as well as the flexibility to accommodate and work with you on unique requests. Vendors who show a willingness to say “yes” or are of the mindset they can figure anything out with you are incredibly valuable for any MSP.
So, if you are ready to take advantage of this growth explosion and increase revenue by being a trusted advisor to your clients, make sure your internal operations are solid first.
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