How can you increase profitability in managed services?

Move away from hourly billing and adopt a value-based pricing model. This allows you to charge based on the value you provide to clients rather than the time spent on tasks. This can increase profitability while aligning your interests with those of your clients.

Automation is the way to go ..inorder to enjoy the benefits of managed services thus there needs to be an enabling environment to support this in terms of the right tools and processes.

There is a need to strike a balance between profitability and creating value for service consumers. We want to maximize profit without losing customers by keeping prices reasonable. Cloud Service Providers (CSPs) have become successful by adopting a subscription pricing model. I have seen partial implementation with some providers, but mostly a very challenging endeavor. The ability to adjust resources based on consumer business cycles and requirements can be a game-changer.

At our company we don't focus on profit margins. Instead we are obsessed with providing our clients with a world-class user experience. That involves hiring high end staff, meticulous operating procedures, and a lot of management oversight. Our experience is that if you can provide a clients with a 5 star experience, they will be more willing to pay a premium for your services without any hesitation, based on the value that they receive. As such higher profit margins will follow.

The cost and pricing should be linked with the service provided, not as headcount, and the service provided should be paid based on the value, which allows you to mange that internally by cutting the cost with many options such as limiting he resources or offshoring, with the same service provided.

Completely agree. Processes are at the core of entire managed services framework. Processes like transition, knowledge management,regular skill evaluation, up-skilling and cross-skilling are some of the most effective processes for sustained delivery and profitability in the long run. Besides traditional ticketing,monitoring and automation tools, today Bots are very effective for enhancing profitability by significantly reducing manual and inefficient efforts.

I fully agree here, the only way to keep costs in control and achieve the desired margins is to Automate, remove the hands on and eyes on glass. This is likely why the MS is being offered, costs have ballooned due to business changes and increased demand and the potential customer has cost issues. Managed Services needs to have Automation costs built in, meaning experts to do the work and offload the labor. This would likely come with a front loaded expense impacting the 365 to 500 days of a 3-5 year deal of large scale, but offer a claw back as efficiencies are gained in the latter years of a deal. However, you must include the talent and tools to get you there. Also ensure you care for anomaly detection and high quality monitoring.

Uma abordagem adicional para impulsionar a lucratividade é otimizar processos e ferramentas. Essa otimiza??o contribui para a redu??o de custos operacionais, aumento da produtividade e aprimoramento da qualidade do servi?o. A automa??o de tarefas repetitivas, como monitoramento e backup, por meio de ferramentas como RMM ou PSA, é um exemplo prático. Além disso, a padroniza??o de fluxos de trabalho, documenta??o e comunica??o, utilizando plataformas como ITIL ou software MSP, pode ser implementada. Ao simplificar opera??es, economiza-se tempo, dinheiro e recursos, permitindo focar na entrega de servi?os de valor agregado.

Once the system is stable, we have to think how things to go as per process, less man work, by engaging tools and auotmations which can help the cost and the quality of the deliverables, with high-quality monitoring and preventive maintenance actions and rectifications can reduce the close and enhance the efficacy.

The value lies within receiving service, not in the type of provision. Emerge from manual (personnel-based) to automated (software-based) service provision to reduce cost. Standardization via e.g., process mapping reduces cost and builds the basis for automation.

Especially high margin products like best-of-breed software can boost margin of managed service providers. Reselling high-margin software to your client gets you a piece of the cake with limited invest - best case subscription-based to have a monthly piece of cake.

Para impulsionar a lucratividade, uma estratégia eficaz é realizar upsell e cross-sell de seus servi?os. Isso envolve oferecer aos clientes existentes servi?os adicionais ou complementares que aprimorem seus resultados ou atendam às suas necessidades. Por exemplo, a venda de pacotes de nível superior com benefícios adicionais ou suporte aprimorado é uma prática comum. Além disso, a realiza??o de vendas cruzadas, como servi?os de seguran?a, nuvem ou consultoria, pode ser benéfica. Essa abordagem n?o apenas aumenta a receita por cliente, mas também fortalece a fideliza??o e cria novas oportunidades por meio de indica??es.

a no brainer for any seasoned Service Director, offering bes tof class products and services your companie has is a sure winner.

Upselling or cross-selling of services is a good way to increase profits, especially if it brings additional value to your customers. Just keep in mind that too many attempts too often for offerings that aren't seen as beneficial by customers could bring negative results.

Which is more important of managing the SLA agreed with the client is to strictly follow it and don't accept any unnecessary upgrade or downgrade of the priority agreed and not overjudge the issues and lose the value of each priority.

Put your customers first. A happy customer stays with you, forgives you when you make a mistake, and shares their wonderful experience with potential customers via word of mouth or social media. And don't forget to upsell and cross sell in accounts you already have a footprint in. Also, decrease expenses. This can be accomplished by taking advantage of things such as funds from partners (marketing, free hardware or software, etc). Additionally, focus on higher margin producing services,

Manage contract and Experience, SLA’s and KPI’s are a thing of the past. everyone offers and readily meets the SLA’s. BUt which service provider treats your end users as thier own? Doesnt close tickets just because end users are busy n not responding to the tickets. Who wants to respond to a ticket when the problem is already solved??? or wants to follow up with help desk to get resolutions. Let’s think about experience, let’s think about “One Stop Shop”

Cross-selling and upselling must be part of the company culture. All employees who interact with customers should be trained to explain the full range of products and services offered by the company clearly and concisely. In addition, there must be a structured incentive program to reward those who demonstrate and are willing to take action.

Investing in your team and culture increases the productivity and resultantly makes the services of your team more premium and cost efficient.

Find ways to build trust in the team. Make your team more than just a place people come to work, but bring in activities that increase personal interaction between team members. This is a major key to high team performance, especially dealing with remote teams.

Invest in the training and development of your team to ensure they stay current with industry trends and technologies. This can improve the quality of your services and allow you to command higher prices. Invest in automation tools to streamline routine tasks and improve operational efficiency. This can reduce labor costs and allow your team to focus on higher-value activities. Stay ahead of the curve with technology investments that enhance your service delivery. This could include adopting new tools, platforms, or methodologies that improve efficiency and service quality.

The team or the resources have to be cross-connected with other modules not only in their primary module which they are working on, that can increase the power of the team and also avoid the key resources' resignations and cut the dependency and risk removing as well. Moreover, giving training and guidance give the resources to be developed inside the company and project and reduces the close of hiring new resources who don't know the env. instead, we can upgrade existing resources from level to level.

agree a 100%, get rid of tiers invest in “ One Stop Help desk” for all IT needs. width of concepts and depth in the top call types will help increase the FCR and reduce time taken to resovle tickets overall, training is teams is key

Automation is key to increase profitability. Using modern tools such as artificial intelligence and gpts not only good to have but essential to implement in current managed environment.

To enhance profitability in managed services, it’s essential to: Invest in service offer management: Establish a dedicated team to define core offerings that are configurable but not customizable for each client. Focus on standardization: Standard offers are more profitable and scalable. Optimize delivery: Ensure the organization has the right processes and tools to deliver services aligned with service management, fostering excellence and boosting customer satisfaction. This approach streamlines operations and supports sustainable growth. Other aspect is to look into the right pricing strategy for your business, but that topic is for a whole article itself.

The introduction of a technology alignment process, aligned with standards and best practice can add real value and improve MSP's margin. From a customers perspective risk is being managed. From the MSP's perspective gradually aligning customers to common configurations and technologies will reduce support calls and make trouble-shooting issues easier.

Proactive Monitoring and Maintenance: Adopt proactive monitoring to identify and address issues before they become critical. This helps in reducing downtime for clients, improving their satisfaction, and minimising the reactive support that can be costly.

In the service relationship journey, the service provider and consumer (customer) create the "line of visibility". The service provider knows certain information about the customer and vice versa with the consumer. The area between these demarcations is called the "band of visibility," where all service interactions exist. As a managed service provider, we need to pursue building deeper relationships and expanding this band. The relationship must evolve from an order-taking level to a trusted collaborative and strategic partnership. This creates a sticky business relationship and opens opportunities.