Barracuda with their “The Evolving Landscape of the MSP Business Report.” I’ve pulled some highlights.
MSPs expect to maintain their average revenue growth trend of 33% in 2023.
To fuel the expected growth in 2023, almost all of the respondents’ organizations (85%) plan to add anywhere from 1 to 8 services to reach their growth targets. Specifically, a third of respondents plan to add 4 to 5 new services in 2023.
More than eight in ten (83%) respondents agree that the global economic situation somewhat hindered their organization’s growth aspirations in 2022.
Despite the sudden increase in working from home to help combat the pandemic three years ago, the demands of customers’ remote/hybrid working practices are still causing issues for a significant proportion of MSPs.
This proportion has increased from 38% in 2022 to 46% in 2023, and the report suggests this is not a challenge that will soon disappear. Furthermore, nearly half (47%) of respondents wish their organization had more access to support for hybrid/remote working best practice guidelines. This shows that, even within MSPs themselves, hybrid working is proving to be a challenge.
Almost equally reported as a challenge is the heightened competition in the MSP market (44% – up from 34% in 2022). This is potentially a reflection of market expansion as MSPs seek to diversify the industries they provide managed services for continuous growth.
MSPs waiting for someone to give them the working best practice guidelines will wither on the vine. They are order takers, not solution providers.
MSPs who are developing those best practice guidelines are going to win in the long run. Your job as a solution provider is right there in the title…. To provide the solution. The information is out there; your job is to synthesize, combine, and deliver it to customers.
The report is right to suggest this may go on for a while. The report is missing the more significant point – that’s the work the MSP should be doing.