“Anatomy of a Successful MSP” by NSCA and PSA provides a blueprint for a profitable service business by deconstructing how some integration companies achieve elusive success.
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CEDAR RAPIDS, IA, and WESTMINSTER, CO, Sept. 30, 2021 – A new, non-traditional research study seeks to change the integration industry’s dialogue around services revenue.
The transition from product- and project-based revenue toward a recurring revenue and service-oriented model is an omnipresent topic in integration industry trade publications, webinars, and business conferences.
The traditional focus is on making a case for integration companies to shift business models and pursue the more consistent cashflow and stickier customer relationships that come with a service business.
Click to enlarge. Source: NSCA & PSA
However, “Anatomy of a Successful MSP” by NSCA, the leading not-for-profit association representing the commercial integration industry, and PSA, the world’s largest consortium of professional systems integrators, reframes the topic by analyzing only managed service providers (MSPs) that are successful. The research isn’t designed to make a case for why integration companies should target service business; instead, it unveils a blueprint for MSP success that other integration companies can follow.
The research, based on a survey of integration companies with demonstrated success in growing their service business, identifies common trends:
- Steps taken by successful MSPs after committing to a service-oriented business model
Click to enlarge. Source: NSCA & PSA
- Types of third-party providers they leveraged to get service business off the ground
- Financial investments involved with committing to and launching service programs
- Employee investments
- Financial impact on companies
“Many integration companies understand the value in shifting to a more service-oriented revenue model, but they’re still slow to make the transition,” says NSCA Executive Director Tom LeBlanc. “It’s a big change. Companies want to proceed carefully and strategically. This can be difficult because, in the integration market, there are so few blueprints of successful service providers to follow.”
Click to enlarge. Source: NSCA & PSA
The research by NSCA and PSA provides integration companies with more clarity into necessary steps and the pain points involved with restructuring a traditional business model. “It’s a non-traditional research piece based on a small but focused survey,” says Candice Aragon, vice president of marketing & events for PSA and USAV. “Both NSCA and PSA identified lists of relatively successful service providers and asked them to share perspectives that might help integration companies that aren’t as far along in their transition to managed services success.”
NSCA members can download “Anatomy of a Successful MSP” here.
PSA members can download “Anatomy of a Successful MSP” here.
Click to enlarge. Source: NSCA & PSA
Contacts:
- Tom LeBlanc, Executive Director, NSCA, tleblanc@nsca.org, 617-216-8794
- Candice Aragon, VP of Marketing & Events, PSA Security Network and USAV, caragon@psasecurity.com, 303-450-3467
Video: PSA’s Candice Aragon Discusses ‘Anatomy of a Successful MSP”
During NSCA’s 2021 Pivot to Profit business transformation conference, September 21-22 in Atlanta, Aragon offered a sneak peek of the research findings.
About NSCA
NSCA is the leading not-for-profit association representing the commercial low-voltage electronic systems industry. NSCA is a powerful advocate for all who work within the low-voltage industry, including systems contractors/integrators, product manufacturers, consultants, sales representatives, architects, specifying engineers, and other allied professionals. NSCA is dedicated to serving its contractor members and all channel stakeholders through advocacy, education, member services, and networking designed to improve business performance. For more information, visit www.nsca.org.
About PSA
PSA is the world’s largest systems integrator consortium made up of the most progressive security and audiovisual systems integrators in North America. Combined, PSA members boast over 500 branch locations, employ over 13,500 industry professionals, and are responsible for over $4.5 billion annually in security, fire, life safety, and pro audiovisual installations.
PSA’s mission is to empower its owners to become the most successful systems integrators in the markets they serve. PSA brings this mission to life by partnering with industry-leading product and solution providers, delivering unparalleled education and training programs, and by offering a variety of distinctive services that can enhance any company’s operations. Learn more at www.psasecurity.com.