Managed Service Providers, MSPs, require more cost effective skilled resource in order to retain customer satisfaction whilst ensuring profits from IT Support and Service Desk.
Through downturned financial climate MSP’s have generally struggled with profit, retaining excellent resources, service delivery and customer satisfaction. The economic forecast is encouraging but the sector is still focused on ways to improve service and improve profitability.
As a service provider, do you find yourself asking these questions:
- How do I improve revenue, without thrashing resources?
- Is my recurring revenue covering costs?
- Are you finding it difficult to be competitive?
- Are we providing the best customer service but can’t justify employing more resources?
- Have I got the budget to hire more resource for multiple repetitive tasks such as patching, report generation and general maintenance?
MSP’s tend to sell “service hours”, which are generally a fairly fixed commodity and it is difficult and expensive to ramp up and down as needed. Either a company waits until there is full justification for an extra person and risks customer satisfaction, or they over employ and thus have an under-utilised resource.
MSP’s rely heavily on recurring revenue to cover costs, whilst projects and ad-hoc service requests provide the profit. However, the case is often that recurring revenue doesn’t cover costs, most of which are employee costs, and companies rely upon ad-hoc work to cover the remainder and provide profits.
In order to be competitive MSPs are under pressure to keep rates low; often the MSP with the lowest rates “wins the deals”, and there is effectively a “race to the bottom”. Some MSPs do this strategically in order to win a large client base, or to see off a competitor, then slowly increase their rates to make up the losses; highly competitive and cut-throat market.
MSP’s require new solutions to offer to their customers. Standardisation of user experience is a usual product and with Microsoft and others, releasing new versions, these solutions need to be refreshed, maintained and quite often re-built. Building solutions around cloud offerings is on many MSPs’ minds and agendas. However, it is usually the same Senior Engineers who are required to work on new solutions and architectures. Balancing the cost of developing new solutions against the loss of commercial standing and presence without leading edge solutions, is the MSP’s continuing challenge.
Aotea Support for MSP’s resolves all of these issues.
All of these problems arise because the cost of an engineer can range from 1.8 to 2.5 times their salary (or more), so an example may be that an engineer on 60,000 equates to an hourly cost, whether they work or not, of around 70 per hour. Aotea provides your own dedicated team of university qualified and industry certified Senior IT Engineers and Architects for a cost which could be a quarter of employing locally, or in other words, Aotea can supply the best for the price you’d normally pay for the least.
Interested in learning more?
Then contact us today on: Tel UK and EU: +44 (0)330 380 1174 and extend your Enterprise with one or more, or a combination of the services we offer.