In the present market trend, MSP businesses are experiencing more competition than ever. So, service providers must ensure that they meet all the modern-day standards to offer the best services to the client. Likewise, it requires special priority to address the challenges for managed service providers.
We can notice a massive transformation in business processes these days. Everyone seeks optimized productivity, increased efficiency, reduced costs, and enhanced profits. And MSPs provide a win-win solution for enterprises to create a steady and booming business.
Many recent analyses have established businesses profiting from working with MSPs. But, MSPs also face many hurdles while providing services to clients. Moreover, there is room where MSPs can improve which could promote growth.
So, we will discuss the biggest challenges for managed service providers in this post. These factors will help MSP businesses to track future opportunities to boost sales and enhance brand awareness.
Digital transformation and cloud-based services have enhanced business efficiency, but at the same time, increased the need for cyber protection. This situation has compelled businesses to opt for managed services to ease their IT tasks. However, managed service providers also face various challenges while fulfilling the client’s expectations. Here are some of the biggest challenges for managed service providers.
1. Addressing Safety Matters
One of the major challenges for MSPs is dealing with the latest cyber security threats. Certainly, when there are technological advancements, hackers are also fully active. DDoS attacks, Ransomware, and other malware have intimidated numerous companies and impacted even the most distinguished businesses, causing massive losses.
About 50% of MSPs declared that a considerable part of their customers became victims of a cyberattack in the last 12 months. So, MSPs providing services to any industry must remain updated on cybersecurity issues.
2. Cloud Adaptation
One of the most significant changes caused by the COVID-19 pandemic is remote work and cloud adoption. This condition has pushed numerous businesses to MSPs seeking assistance with cloud migrations.
Demand for service with cloud migration is growing steadily with the rising number of security exposures. Now, most businesses rely on the cloud considering it an effective way to facilitate data protection and enhance cooperation.
3. Getting Dedicated Partners
To acquire business goals, MSPs must find dependable partners who can deliver the resources, solutions, and tools. These solutions are applicable in invoicing, customer support, network management, endpoint management, marketing, etc.
4. Automation Solution
MSPs should automate as many processes as possible to stand out in the competition.
Automation helps with easier functionalities for MSPs, enhancing their productivity and lowering managing costs. So, you can focus on other crucial things like customer support.
With automation tools MSPs can:
- Decrease the time IT professionals spend managing routine, redundant jobs
- Save the time of IT staff to work on core business strategy
- Lower the expenses for service delivery
Thus, selecting a suitable automation solution is crucial for MSPs companies, as it can directly affect their reputation.
5. Customer Retention
In an increasingly competitive managed services market, retaining clients is one of the biggest challenges for managed service providers. With the entry of new MSPs into the market offering the same services at a lower cost, the scenario is becoming more complex.
6. Go with Customer Behavior
The digital transformation ensures that information is accessible to customers, employees, and other consumers anytime. As new technology evolves, Customers’ behaviors change. Besides, modern customers have access to various apps and other systems that enable them to view things differently.
Digital transformation drives businesses and organizations to adopt relatively new approaches, technologies, and management tools. It helps them meet customers’ expectations at all levels, from engaging to retaining. So MSPs must embrace the latest applications and designs infrastructures.
7. Sustaining Productivity in a Remote Work Culture
The Covid situation has acquainted business leaders with a different scenario. Now people need to be prepared for all kinds of uncertainties. So businesses should systematize themselves to encounter an outlandish future.
Nonetheless, the concept of remote work has enabled many industries to continue operating during this crisis. MSP help desk services play a crucial role in organizing the workflow at this point.
Many workers still work remotely with their systems, laptops, and mobile phones at home. So it’s crucial to maintain productivity from a centralized place. Accordingly, managed service providers have to adopt new action plans to keep the staff motivated.
8. Controlling Outages and Downtime
Your MSPs not only track and manage IT setup but also control complete IT performance. Therefore, customers cannot anticipate downtime and outages after hiring an MSP IT help desk to avoid these threats to the business in the first place.
Outage impacting costs and risks leave a considerable effect on the business. So, if you find it is occurring regularly, review your contract to make sure these matters are protected.
9. Supporting Sales and Marketing Teams
Most MSPs depend on referrals to get business, and research indicates that MSPs are most concerned with developing leads and sales conversion. However, referrals are not an endurable way to succeed when your target is long-term growth.
MSPs have to search for new routes to generate business by transforming themselves. MSPs need to address the needs of their customers beyond the basic measures summarized in the SLA. It will help them distinguish themselves from others in the industry and create value around its services.
10. Adjusting to the Customer's Setup
A major challenge for MSPs is changing management and growth plans to acclimate to the clients. The execution of an MSP schedule results in a crucial change for a business. It is therefore essential to train and support all the people who will directly or indirectly work with MSP.
With the emergence of new technologies, businesses are increasingly depending on automation. It leads to a more complicated process of managing and sustaining IT infrastructure. MSPs help businesses to improve operational activities, enhancing sales and revenue.
Fortunately, with the emergence of managed service providers, businesses today can access the ultimate MSP IT help desk service. It also helps businesses to expand their teams or fully outsource IT infrastructure and services. However, there are many challenges for managed service providers, which they need to address properly to grow the business.