More than 80 percent of MSPs are finding that recurring services now drive a portion of their revenue according to the latest research from Datto.
Datto’s ‘State of the MSP’ report highlighted an “industry shift” from service providers solely modelled on ad-hoc services to becoming more strategic advisors to their SMB clients.
More than 44 percent of survey respondents revealed that more than half of their overall revenue now comes from recurring services.
Datto found that MSPs are expanding their portfolios to include services that aren’t typically included on recurring contracts, such as Networking as a Service, as SMB clients increasingly look to managed services for the upkeep of their IT infrastructure and networks.
Additionally, 56 percent of respondents said they tailor their services for a specific industry, with healthcare the most commonly catered-for sector for the second year in a row.
To keep pace with this growth in managed services, 71 percent of IT service providers also plan to add to their staff in the next 12 months. However, hiring suitable people remains the number one paint point for MSPs in Europe.
According to Datto’s report, 45 percent of European respondents said it would be harder to recruit new talent this year – compared to just 30 percent globally – citing a potential “nervousness” in changing jobs due to Brexit.
Security concerns also remain another top priority for MSPs and their clients, with ransomware and cybersecurity almost doubling as a pain point, from 14 per cent in 2017 to 30 percent in 2019.
