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The MSP market: changing and thriving at the same time

The MSP market is rapidly changing. Offering a Managed Service Provider used to be fairly straightforward. But with the possibilities surrounding data and tooling, the talent shortage and the ever-increasing complexity in regulation leads to different expectations from MSP clients. A new white paper by Intelligence Group looks at recent trends and external factors which coincide with its apparent incredible growth. 

Jasper Spanjaart on April 17, 2020 Average reading time: 3 min
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The MSP market: changing and thriving at the same time

The paper expects the MSP market to grow considerably in the forthcoming years. It explains how the market grew on a global level, and does not show any signs of slowing down. New industries are widely adopting managed service providers, with mid-sized organisations leading the way. Larger organisations, meanwhile, are steadily shifting towards a total talent approach. 

The Total Talent Approach

That latter part is proving to be a key component in the MSP surge. The emergence of the total talent model means that recruiters’ skills will be increasingly important for the success provides have. Larger organisations will focus on acquiring the best possible talent (i.e. the total talent), which coincides with a need for managed services providers as they look for solutions for the growing talent shortage.

As the need for MSP services grows, new organisations are entering the market.

As the need for MSP services grows, new organisations are entering the market. Locally, brokers are trying to transform their services into an MSP model. Meanwhile, in some cases technology allows clients to go through the MSP routine themselves. Online platforms, which allows freelancers to work remotely, are also offering their services – which poses another form of competition.

Still growing

Moreover, the paper expects governments to intervene: they will attempt to regulate temporary and freelance labour. A legislation is inevitable, according to the paper. “We expect governments to legislation around freelancers or independent contractors, while simultaneously the market itself only keeps getting bigger.”

The paper expects MSP customers to continually use MSP programs for strategic decision-making processes.

Within an MSP program, large amounts of data is generated, wherein traditional datasets are being enhanced with the addition of external data. The paper expects MSP customers to continually use MSP programs for prognoses and operational and strategic decision-making processes. “MSP has always been a very tech-driven services, automation can help make processes more efficient, while also saving you costs. This will lead to an influx of new tools for MSP providers, and their customers, to use.”

Download Trends and External Factors driving the MSP market 2020-2021 here. 

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Jasper Spanjaart

Jasper Spanjaart

Editor-in-Chief and Writer at ToTalent.eu
Editor-in-Chief and writer for European Total Talent Acquisition platform ToTalent.eu.
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