The need for MSP’s (Managed service provider) has emerged due to widespread adoption of technology. As data is migrating to the cloud, subscription-based management of the cloud-based services is what companies are aspiring for. IT companies in India have shown commendable growth in the global market. Managed IT service companies in India have been providing computer support, managing servers, and selling hardware or software to the other companies remotely for over two decades now. So, we cannot ignore the fact that India is well-aware of the latest technology platforms, software or hardware and can provide better services and support than any other part of the world. Investors are showing interest in new MSP’s who can help companies release the operational burden and in turn work on growth thereby, creating a win-win situation for both. Small and medium sized businesses have responded favorably to the MSP model.
MSP (Managed Service Provider) is a third party company that remotely manages the company’s IT infrastructure, and can provide network, application and system management services to other businesses. The main objective of MSP is to help an organization to spread their wings in different sectors, enhance the process and reduce the cost involved in operations.
Some of the primary services that are provided by MSP’s are:
–Subscription-based management of on-premise or cloud-based services.
–On-site project based services (network & Database design, deployment or maintenance).
-Hardware or Software reselling
-Providing cyber security services
-Help in building improved business model to their clients
The Key driver supporting the MSP model is that the management of IT resources for a company is not central to the business. MSP helps in maximizing Uptime to increase the availability of the applications. In terms of Cost saving and better forecasting, MSP’s provide cheaper and predictable costs relative to in-house resources.
Smart investment on technology growth: A great way to invest alongside this growth without taking direct technology risk is to invest in MSPs. Worldwide IT spending is expected to increase 4% annually through 2022. MSP’s do not work on any specific technology, they work according to the client needs and can adapt to the change in technology, quickly. Earlier a backdrop within the MSP industry was technology. The B2B nature of the service offering was comfortable for non-tech investors and likely to be a gateway for firms with less tech experience. But since MSP’s are in demand, they are following the right practices and working on the latest technology to provide maximum profit to their clients.
There are a large number of MSP’s in the market, and there are going to be good MSPs and not-so-good MSPs. Many MSP owners follow KPI benchmarking and best practices to maximize the valuation of their business. Something which every investor is going to look for in an MSP is the Value-Added Services.
One of the ways to determine how profitable and growth centric an MSP is the Value- added services. Look at their past work and the benefits they’ve provided to their clients. High value added services include data security, data monitoring, customer feedback and large implementation that might be required to fulfill the customer needs.
Conclusion: This sheds some light on why investors are looking for good MSP’s. Investors are recommending their partners to look for a cost effective way to spend less on resources which are less prone to business. MSP’s are becoming a great helping hand to their clients to meet the targets and provide investors an overall profit for their investments.