The Forecast

Why Done for You Services Makes Sense

Idea

Running and growing a business for SMB IT providers can be tough. It’s hard to know when to hire more people, how to keep them working, and how to keep a steady flow of revenue coming in. More and more vendors are introducing “done for you services.” These services allow MSP’s and IT companies to focus on selling, while the vendor handles all backend work, installation help, and billing. There are a number of reasons these done for you services are good for MSP’s.

If you haven’t noticed there has been a large number of vendors in the space moving to direct models. These companies are ultimately cutting out the middleman to seek out higher profits and revenues. This leaves MSP’s searching for new solutions and relationships. The done for you model is a happy medium for businesses. It can take a lot of the burden off of the MSP, allowing growth and higher revenues with minimal costs/overhead.

A number of industry experts agree that the future of the MSP or IT business is in service aggregation. This means that rather than labor intensive server installations and hardware projects, companies will become providers of a number of services. The list of products and solutions could be a stack from 50 products/vendors to 200 depending on the needs of the customer. The model tends to look a lot more like a general contractor, home, or pool builder. These companies aggregate many services, personnel, and contractors to reach an ultimate goal for the customer.

You can see how utilizing done for you services looks very much like the model just explained. In this model, the MSP maintains the relationship, designs solutions, manages vendors, and reaps the rewards. MSP’s are able to run their business very lean, as the priority becomes growing sales and consulting teams that are usually commissioned based. This makes for maximized profits for the business.

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