MSPs Increasingly Outsourcing Services

More managed service providers (MSPs) are outsourcing their operations to accelerate their growth.

That’s according to Bradley Munday, CEO of Uptime, which offers white-labelled helpdesks alongside NOC, SOC and project services to MSPs.

Munday said that while most MSPs have been founded by techies, there has been a change of late.

“There has been an uptick in MSPs now being founded by individuals with a sales background or that have previously run and sold an MSP and are starting up again,” he said.

Uptime's Bradley Munday

“This type of MSP is relying heavily on outsourcing across the business including the technical operation. Because they have the capability to scale quickly, building internal teams would slow the process. In 2023, one in 22 of our leads was operating this new model whereas one in seven leads in 2024 so far has adopted this new model from inception.”

While outsourcing isn’t a new activity for MSPs, both the scale at which they are adopting it and how they are positioned it to customers is, added Munday.

“A much more transparent approach to telling customers about an outsource helpdesk allows the MSP to take a very impartial approach to service delivery,” he said. This “elevates the relationship they are able to maintain with their business customers. With all the distractions outsourced, the MSP can focus on the customer experience with a view to create a high level of customer satisfaction.”

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The CEO said this approach is working. Uptime tracked its MSP partners that have adopted the outsourcing model as having 2.6% customer churn in 2023. It's a statistic, he said, that was much lower than the market average churn being reported over the same period.

Helpdesks More Customer-Focused

Elsewhere, Munday said there has been a change in the type of individual being assigned to the first touch of helpdesk support.

“They are more customer service-focused than technical, often coming from roles like hospitality,” he said. “Alongside this there is a shift in the way an issue is escalated within the helpdesk, with it becoming more frequent … as a ticket is escalated, the point of contact for the customer remains the same and the individual that provided the first touch continues with the customer communication and ownership of the ticket.”

MSPs Playing at Their Own Level

Uptime held its inaugural business event for MSPs, UptimeLive, recently in London. Munday said there was a focus on MSP owners “playing at the level they wanted to play at.”

“Our market is constantly talking about growth, and that’s not for everyone," he explained. "We are seeing increased levels of burnout and the phrase ‘recovering ex-MSP owner’ is one I am seeing more and more. There is no reason MSP owners shouldn’t enjoy the journey of business ownership, and they can as long as they play at the right level.”

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