MSP – Increasing Their Resource Pool and Improving their P&L’s.
Working in a highly competitive sector, mostly Education, this MSP found that it struggled to make reasonable profits each month, caused mostly to a downward spiral in chargeable rates due to competition and the high salaries needed to attract and retain the required technical resources, particularly Senior Engineers. Also the need for new and innovative products and services required large amounts of time from the senior resources, who were thinly spread supporting customers and providing escalated support to the more junior support people. Further to this, their Service Desk generated high costs due to the number of people required to man it, often undertaking numerous low level tasks.
Aotea was engaged to supplement this MSP’s teams with medium to senior engineers, who were able to work remotely, providing support to the junior on-site engineers, tackle higher-level support tasks and work on the development of new service and product offerings. Aotea also supplemented their Service Desk with much cheaper L1 support staff, who were able to take overflow incoming calls and incidents, handle the administrative work such as generating and preparing reports, customer satisfaction call back, monitoring the Network Operations Centre and so on.
This customer already had good internal processes and systems used to support customers, so the customer’s Aotea teams were simply and easily inducted into their working environment and formed a core part of their own teams.
Benefits to this customer included the following:
- Greater customer retention due to maintaining their competitive rates; Aotea senior engineers cost them less per hour than their own internal junior engineers, average ratio of 3:1 Aotea:MSP internal.
- Ability to generate new products and supporting services due the quick increase of available technical resource, from Aotea – R&D.
- New customers generate more support work, but the Aotea team supplementation provided this at no extra cost, as Aotea teams replaced expensive internal staff, mostly due to natural attrition.
- Greater customer satisfaction, due to the larger number of L1s available to respond to calls and logged incidents, also greater communications with customers as Aotea was able to double their SD team size.
- Overall, by utilising Aotea to provide them with an off-shore branch office, they were able to reduce their overall costs, thus increasing their profits, improve customer satisfaction and generate new products, all without increasing their costs.
Using Aotea off-shore branch offices greatly reduces the cost to MSPs, whilst increasing the available technical resources.