keyboard_arrow_left How to grow your MSP with an outsourced NOC keyboard_arrow_right

by Toby Demelker, Marketing & Sales
october 31 2018, 11:30am

Primarily focused on growing their technical skills and expertise, IT professionals tend to be a distinct group. Technical ability is their point of convergence and, within reason, many stand proud in being able to solve pretty much any IT related problem. Technical teams tend to focus too much on the details and not enough on the business dynamic.

You will have to make concessions

If you, as a Managed Service Provider (MSP) want to grow your business, you will have to make some concessions between business technologies and business strategies. A MSP earns its revenue by solving client problems, but neglecting other revenue generating efforts like up-sells, cross-sells and any attempts to grow your clientele will eventually result in a loss of profit.

Maintaining an existing IT system is no longer enough for a MSP business to grow. You need to shift to a more strategic focus and outsource more time consuming, recurring tasks and responsibilities by a trusted partner like RPN Technology.

What are common pain points of a MSP?

MSPs want to offer a dedicated team solely focused on protecting the IT systems, completing patch updates and whitelisting, monitoring virus status, backing up and storage management, managing support tickets and maximising uptime for their clients.

In-house Network Operations Center reduces profitability

Most MSPs have an in-house Network Operations Center (NOC) which take time to monitor, either manually or via remote monitoring and management tools, key operations like connectivity, backup, event management and more. Having an in-house NOC reduces the profitability of a MSP and makes it harder for you as a business owner to scale. As a MSP owner your business needs to grow and the only way doing this is by expanding your clientele. If you try to accomplish this with just your internal staff, you would have to hire more staff for your in-house NOC team so you can support these new accounts, as well as existing account management.

Finding talented technical staff

Finding talented people to work for your MSP is an essential part of having a successful IT company. Get the right people in the right seats on the bus and then figuring out where to drive is easier said than done. Talented MSP staff are hard to come by and are expected to be heroes. They need to hold extensive knowledge and expertise in servers, client applications and complex network infrastructure, and in addition, of all that, they are expected to have remarkable customer service skills while processing many support tickets at once. Those skills are not only hard to come by but are also becoming more and more expensive.

Hiring more staff results in paying for more employee salaries and benefits, HR costs and payroll costs, re-hiring costs, sick days and holiday leaves, and you will have to take into account that you might even need more office space to house your newly acquired staff. The most recent job statistics show that the engineering job market is tight. But many companies are somewhat unrealistic about the importance of offering a competitive salary, which isn’t going to get them top talent, first-rate system engineers are in high demand and are commanding considerable high salaries in Western employment markets.

The question that you should ask yourself is, do first-rate system engineers that have high staffing costs generally translate into higher fixed monthly fees or charge out rates? Talking from our own experience, more often than not. Unfortunately, the cost of MSP staffing is quickly exceeding what customers are willing to pay for IT services. As a result of the large competition in the IT space, customers expect to pay less per user per device.

Grow your MSP

How can these pain points be alleviated?

Fortunate for you there are better ways to monitor your client operations and still deliver an outstanding service. Instead of wasting your technicians time and skills, use those talents elsewhere.

MSPs who get ahead of the market, by focussing on business strategies, fine tuning sales and controlling labour costs will always have bigger margins and be better positioned for scale than those stuck with high cost labour and declining fixed fees.

By recognizing an outsourced support solution like RPN Technology, either from our NOC or White Label MSP, you can effectively scale your business, grow your profit, manage your labour costs and create more fruitful work for your staff without needing your resources to cover for periodical IT challenges.

It’s time to grow your business, not your workload. Get in touch!

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