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The changing shape of the service provider landscape

By 27th September 2022MSP

Louis Jardim, Chief Operations Officer at Turrito takes a long look at the evolving role of the technology solutions provider and how this is changing the landscape for the traditional MSP. 

Resilience and innovation have defined the evolution and transformation of the global technology and service provider industry over the past two years. In a recent analysis, McKinsey found that service providers had not just stepped up their game but adapted their approaches to partnerships, outcomes, and services. From the IT provider that provides traditional services in a service desk environment (managed services provider) to a services portfolio that adds value by assisting enterprises with strategy, technology roadmaps and holistic security (technology services provider) companies are changing how they meet organisation expectations. 

This move from managed services (MSP) to technology services (TSP) has not just been ignited by the pandemic but by the relentless innovation of technology itself. Solutions are constantly changing or emerging and many companies are uncertain as to what this means for the business or how to leverage it properly. While an MSP can dip into the solutions well and provide these platforms and services to customers, it’s not necessarily enough. There has to be more strategic advisory, more insight and support. Which is why many MSPs have are changing alongside the technology, taking on the role of a trusted advisor. Taking the step from services provider to services partner. 

In this bold new TSP world, services become interconnected and strategic advisory comes as standard. It’s a smart move, and one that’s likely to gain traction over the next few years because it allows for both TSP and enterprise to delve more effectively into strategic applications of technology. The organisation is given the space and capacity it needs to step back from the onslaught of technology solutions and to rely on the TSP to know which technology will be the best fit for which part of the business.  TSPs expected to understand how a fresh iteration of Azure or an email client or messaging platform will impact on operations, and how to ensure that the transition is seamless. If there is a transition at all. 

Ultimately, it’s an approach that’s been a long time coming. Filling a much-needed gap in the market with specialists and skillsets that are hard to come by, and hard to retain. TSPs can offer organisations a juicy selection of experts, engineers, strategists and technical advisors that provide on-tap guidance and support that’s both relevant and unique. It’s also far more cost-effective than putting all these skills under one corporate roof and in line with the budget’s demand for technology to deliver on its cost and optimisation potential. The reality is that companies aren’t interested in technology for innovation’s sake, they want cost savings, resilience, revenue generation and innovation. In a recent McKinsey analysis, the research firm found that the development of a tech services ecosystem was becoming increasingly relevant for companies that wanted smarter ways of engaging with their technology providers.    

The TSP model allows for service providers to become more efficiently aligned with business strategy and to then allocate specialists that can provide the right levels of guidance and support. They can also build and consistently adapt a technology roadmap that fits within budgets and expectations, while simultaneously remaining immersed in the overall business. The role of TSP is inherently more proactive and leverages intelligent software that allows for the teams to provide real-time reporting and event management. It means that security and system management are tighter and faster, catching problems before they become catastrophes and embedding compliance throughout the business ecosystem. 

What the TSP brings to the table is a far more holistic and trusted service that allows for both the organisation and the service provider to focus on their strengths so they can deliver exceptional business to their customers. It’s symbiotically elegant. And it is a smart, cost-effective and strategy way of staying ahead of technology change without the risks, complexities and delays. Over the next five years it is very likely that the TSP model will become standard as it cements a more scalable and agile relationship between service providers and companies and allows for shared innovation and growth. 

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