This report aims to provide an insight into the key factors driving MSP adoption among buyers, in addition to providing an overview of the buyers’ perception of aggregate service provider performance.

The analysis in this report is presented at three levels:

• Key factors driving MSP adoption among buyers
• MSP provider performance
• Evolving buyer requirements

Some of the key findings are:

• The traditional driver, cost reduction, has become table stakes in the MSP market. Buyers are now placing increased importance on the availability of factors such as advanced analytics and process efficiency while making the MSP decision
• Consequently, the overall buyer satisfaction with MSP providers is heavily impacted by four key performance metrics: innovation, access to better technology, advanced analytics, and proactiveness
• While on the traditional metrics providers have a satisfactory level of performance, they are yet to reach a similar level in metrics such as proactiveness and innovation
• There are two broad categories of service providers in the MSP space, each with their own set of strengths and areas of improvement. Major areas of improvement include speed & quality of implementation for staffing legacy players, and providing access to market knowledge & benchmarks for pure-play MSPs and other BPO players
• Most buyers are willing to consider other services for outsourcing, thereby suggesting that service providers with competencies across the value-chain have the opportunity to gain added advantage

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Managed Service Provider