62% of MSPs Expect to Grow Primarily from New Business in 2022, Survey Finds62% of MSPs Expect to Grow Primarily from New Business in 2022, Survey Finds
However, 77% of MSPs said their current workload is at or over capacity.
March 16, 2022
Managed service providers (MSPs) have navigated the pandemic well and their businesses reflect it. Sixty-two percent of IT MSPs expect 2022 revenue growth to come primarily from new business. This is up from 49% in 2021. These findings come from Wingman’s 2022 MSP Growth Survey sponsored by Zomentum, creators of the first intelligent revenue platform for technology partners.
To produce the report, Wingman Marketing, a technology sales and marketing agency, surveyed more than 125 global MSPs of all sizes about business performance in 2021 and strategies for growth in 2022.
Dave Sutton is managing director of Wingman Marketing.
“We polled MSPs anonymously to get honest input and insights about their business opportunities and challenges during the pandemic and beyond,” Sutton said.
For example, the survey found:
Despite the continued challenges of the pandemic, 95% of MSPs said their revenue remained stable or grew in 2021.
One-half of the MSPs surveyed said they grew revenue in 2021. This was primarily from net-new business, while the other half relied on expanded contracts or new projects with existing clients for growth.
In 2022, the percentage of MSPs expecting revenue growth to come primarily from net-new business jumped to 62%. And 5% said growth would come from acquisition.
Seventy-seven percent of MSPs said their current workload is at or over capacity. This may result from the challenges in recruiting and retaining tech talent.
Forty-five percent of MSPs said their sales pipelines would sustain the company for six months or longer. However, more than half said their pipelines would support them for less than six months.
Two in five MSPs expressed concern that limited time and resources impede finding new business.
A Yardstick for Managed Service Providers
So, what factors drove new business for MSPs during the pandemic?
Wingman MSP Growth Survey
Wingman Marketing surmised that those with project revenue (from existing clients) are likely pandemic-driven projects. Clients switched to remote working, VoIP, cloud and possibly some cybersecurity compliance. Those with client seat growth – some businesses grew irrespective of the pandemic – may have expanded as a result of staff returning from furlough. Those with net-new clients were likely more proactive in capturing new market opportunities from SMBs that had needs only MSPs could service. Acquisitions also played a role as more and more MSPs bought smaller MSPs during the pandemic.
Zomentum’s Shannon Murphy
Shannon Murphy is chief marketer for Zomentum.
“The Wingman MSP Growth Survey is a great yardstick for MSPs to benchmark performance against their peers around the world,” Murphy said. “As we transition to a post-pandemic business world, it’s more important than ever for MSPs to understand their current position to focus on accruing more revenue.”
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