Why You Should Pursue Flexibility for Your MSP Company

MSP companyFlexibility is crucial to the success of your MSP company. When your business begins to receive regular revenue, you may feel a need to change things in order to hasten growth. The traditional client infrastructure needs have evolved, affecting customer needs and forcing managed service providers to shift their approaches. You may have to outsource, change your business model, get innovative or re-strategize pricing. Embracing corporate flexibility is a key contributor to any MSP business growth and improved service delivery to clients.

Freelance Competition

Managed service provision is a field flooded with companies catering to a wide range of needs. Small businesses can compete by providing the necessary talent. However, there is stiff competition from freelance talent, which offers a high skill set for a significantly lower cost. IT consultancy and managerial assistance are now available from individuals who offer very competitive rates. While in business, the freelance market should motivate you and give you the push you need for your small business to thrive. Your small or medium business can find innovative solutions and an operating model that is unique to the service you provide, making it hard for freelancers to replicate it.  Developing a niche that allows your customers to see progression and user-friendliness increases the reliability of your business over the freelance market, helping you retain clients.


The growth experienced by managed service providers comes from the growing demand for outsourced services. As a business owner, this might sometimes force you to outsource talent to improve efficiency and service delivery for clients. In recent years, there has been a growing trend towards offshore and onshore outsourcing in IT to help businesses with non-critical business components. Many MSPs utilize hire-as-you-grow strategies to cut and control costs, and rightfully so; hiring, training and retaining your staff in-house is likely to drive your business costs up. You have to eliminate any uncertainties in your workforce management thus the significance of outsourcing. Outsourced partners take up and manage the risks in service provision to you and in turn to your client by offering high expertise in different fields. Your team can, therefore, focus more on drafting and executing business growth initiatives.


Most successful start-ups are businesses that have been able to apply a series of pivots in their business models. For your business to continually grow, you need to invest in creative and innovative solutions. The accessibility to cloud services and mobile services on an individual basis threatens to lock MSPs out of the very business they provide. Customers appreciate their inclusion in the decision-making process and successful pivots allow you to focus your energies on channels that provide effective business solutions. Being able to adjust and cope financially and strategically gives your MSP company the competitive edge needed to stay in business and maintain profitability.


Economic turmoil drives small businesses to miscalculated decision-making on pricing to keep the business running. However, this decision is not effective and only works as an indicator of poor planning. An initial assessment of the market, competitors, and customers will help you establish a pricing model essential for long-term profitability. You need to consider all factors that influence pricing such as long and short-term debt, software licensing fees, issue resolution time, capital and operating expenses before creating a pricing model. You can offer tailored pricing that covers additional service provision against a standard fee or use a flat rate fee for a number of services. Having a base price regardless of the service being offered shields you from making losses whether your customer decides to take up the service or not.


Market demands are shifting now more than ever due to the global redefinition of doing business, affecting operation in your MSP business. Corporate flexibility ensures that your business keeps running smoothly despite multiple changes and challenges in the business landscape. Flexible business models ensure that customers continue to receive value. You can apply these principles to your business through outsourcing, improving price points without sacrificing your revenue and being constantly innovative with ideas. Your MSP company can maintain its market presence and company value by applying a flexible business model.

Herbert Olitsky

Herbert Olitsky is the founder of HOCS Consulting. A fast growing IT consultant firm based in New York City . HOCS Consulting provides IT services to clients in New York City and helps them choose, implement, and manage IT and cloud solutions that are cost effective and reliable. HOCS Consulting’s pro-active approach to IT support in New York City is ideally suited for companies who depend on reliable IT infrastructure, but don’t want to spend a lot of money to keep your IT services that way.