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MSPs in an Initial Stage of Migration from Generalist To Specialist Firms

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8

Apr, 2016

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Whether it is small scale, medium or a large scale enterprise, a majority of them are outsourcing their business needs pertaining to the Information Technology Sector to Managed Service Providers. Although with the advent of cloud computing, there has been a challenge before managed service providers where in they are entitled to deliver cloud based services channelized in a manner that will best suit their clients, they are emerging from the generalist to the specialist categorization of their core structure. From providing a series of services such as billing, vendor management, CRM that lead to cash generation and monetization, they are the lead bearers of business enterprises.

With the emergence of requirements by Medium and large scale enterprises in the segment of billing and delivery, the growth or migration of Managed service providers indicate that specialists will take a step forward to dominate the managed service channel.

What are the criteria sought by business enterprises in their search for an ideal Managed Service Provider?

  • Planning the Information Technology strategy
  • Enabling a comprehensive approach towards the delivery of Information Technology based services
  • The effective service delivery levels
  • Ensuring reduction in risks and enabling increased continuity in delivery levels
  • Enabling cost reductions and provide lead to cash generation
  • Availability and readiness towards contingencies
  • Being foremost in certifications and training

While the above listed factors term the basic essentials or requisite on any business enterprise, it establishes their expectation from the ideal MSPs. With this being the fact, MSPs today cater to not just a wide variety of services but also specialist in them ensuring effective and efficient delivery model. Today’s era of specialists Firms in the Managed service sector aim at monetization and effective vendor management solutions. The key benefits of embarking on the specialists genre by MSPs to Small, medium and Large business enterprises is as follows:

  • Catering to the better usage of the IT sector ensuring in-depth focus upon the emerging technology and planning
  • Effective monetization that leads to cash generation
  • Reduction in expenses such as ensuring a systematic administration, doing away with the downtime involved in upgrades that incur costs which are otherwise allocated to future planning and business management instead
  • An all round increase in the reliability and performance of the organizational structure and the enterprise on the whole
  • MSPs grant a competitive edge to the enterprise with advanced features such as CRM, billing management, etc. They focus on the needs and do not waste resources enabling effective competitiveness.
  • MSPs ensure delivery of experience based expertise granting immediate access to the most upgraded versions of technology allowing their clients to scale upwards without having to invest directly into expensive technologies.
  • Apart from providing the traditional IT services, the specialists support their clientele in disaster recovery
  • One of the foremost benefits of MSPs being doing away with costly training sessions within the enterprise as the MSPs bring with them to notch certifications and experience.

Therefore, the benefits of specialists as compared to the generalist segment of MSPs, the monetization granted to business enterprises is significant. With this segment in for a significant rise in the near future, being specialists is what is the ideal protocol of MSPs.

Currently in the USA, more than 40% of small, medium and large scale enterprises are using the services of managed service providers. In order to scale the Information technology segment on the larger perspective, small and medium enterprises cannot rely on in-house employee team, training and regulating whom would cause them to incur added costs. On-boarding a Managed services team results in deploying a niche segment specialists towards their vendor management requirements and other priority based services while leaving the in-house resource to take up other initiatives. With the advent of increase reliability on technology by business enterprises of all sizes and structures as a key to elemental success of business, dealing with the growing complexity of the economy along with ensuring effective cost benefits; there has been created the ‘ideal package’ for the delivery of Managed service providers in varied categories, both generalist and specialist.

The trends in the IT sector is always shifting. As enterprises discover the emergence of diversified needs, the specialist MSPs make it obvious that the customers know what they are offering giving them a source of faith. Being ready to onboard their clients towards the latest solutions no matter what the varied needs of the clients are, MSPs position themselves in the specialist category making it easier to up-sell or cross-sell the company solutions over a longer term. Managed service providers in the specialists realm of things help small, medium and large scale business houses deal with not just technology, but deliver effective dealing with ‘complex technology’!

By : Vishal Pokala

Vishal Pokala is The Marketing Research & Strategic Manager of SURE! (a Magnaquest product). SURE! is an internationally acclaimed player in comprehensive end-to-end Subscription Business Solutions for PayTV, Broadband and Cloud Computing businesses – through deployment of Metered Billing, CRM, Service Fulfillment, Value-Added Services, and Managed Services.

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