MSPmentor 100: Precision IT's 'No-Marketing' Effort Succeeds

MSPmentor 100: Precision IT's 'No-Marketing' Effort Succeeds

Precision IT, an MSPmentor 100 company, has a track record for managed services success. In each fiscal year since its founding, Precision IT has grown its revenue by 30 percent to 40 percent, according to David D'Arcy (pictured), managing partner and president of the company. In 2010, the IT service company earned a spot on the Inc. 5000 annual list of the fastest growing privately held companies in the United States. Here's a look at the strategy, which includes some key marketing twists for managed services providers.

Even though 90 percent of its client base is still near the company's headquarters in New York, Precision IT has been able to expand its presence and open small offices in Philadelphia and Charlottesville, Va. And all of this recognition and growth, said company founder and owner David D'Arcy (pictured), was achieved without a marketing team. In fact, D'Arcy noted his company "has never made a cold call." So what is the secret of Precision IT's success?

It helps to already have a reputation in the IT space. D'Arcy is the former co-owner of Domino Computing, a full-service IT company also based in New York. Domino was founded in 2001, but when D'Arcy decided to take a different approach, he left Domino to start Precision IT ... and took 20 clients with him.

Since then, the company has been fully dependent on customer referral and has grown that initial 20-client base to about 150, 80 of which are managed service clients. Sixty-percent of the company's clients are in the financial services sector.

D'Arcy's approach to IT service is unlike many others. Sure, Precision IT signs its clients to annual contracts and uses Autotask's hosted PSA (professional services automation) software. But D'Arcy said one of the company's main priorities is to develop a "true, 24/7 network operations center (NOC) rather than outsourcing it." And while many of the company's potential competitors such as MindShift and All Covered work to strengthen their cloud offering, Precision IT is holding steady; D'Arcy said the company is waiting to hear from its clients regarding when to ramp up its cloud-focused services:

"We don't see clients coming to us saying, 'We want to be 100 percent in the cloud space.' We have a fairly strong cloud offering today, but we feel there is a distraction with all these new players and lots of speculation on where the cloud will go. We're focused on our current offering. We're taking as demand comes, not pushing new product."
Rather than focus on the cloud, Precision IT is looking to enhance its data backup offering and has already invested heavily in an outside sales team, all in an effort to grow its recurring revenue up to 150,000 this fiscal year. "We are focused on growth, not fully focused on cloud," he said.

It seems risky to not focus on a cloud-based offering more heavily when there are so many indicators that the space is heading that way. But you can't argue with the numbers, and so far the numbers say Precision IT has been pushing the necessary buttons to grow its presence and client base. And when and if that base starts asking for a stronger cloud offering, D'Arcy said his company will be ready.

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