In the last couple of decades, Enterprises have been going via the Managed services route for their operational improvements, ease of management and to handle cost challenges. Vendor Consolidation and centralized Operations has also been some of the main objectives when IT Organizations are feeling the challenges of handling disparate geographical locations, vendors, and terms and conditions. At the same time, IT Service Providers have also been struggling to maintain the profitability of the managed services deal due to dynamic work demand, disparate skills, and increasing client expectations.
A recent study shows that while new revenue for Managed Service Provider (MSP) services has risen by 42 percent, profit margins have shrunk by 30 percent. Some of this is because MSPs have to expand their portfolio of services, while still relying on their former pricing structures.[2] This whitepaper primarily focuses on one of the ways to achieve a common unit in a managed service area with multiple roles being managed, wherein both the client and the service provider can have a win-win methodology to arrive at optimum productivity and maintain profitability for the IT service provider.
