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Amid layoffs, organizations are turning to MSPs for support.
February 14, 2023
A new Progress Partners report shows MSPs not only aren’t being negatively impacted by economic uncertainty, but are benefitting from it.
More than 655 IT/MSP contracts were signed in the fourth quarter of 2022, which is up 14% year over year. That’s according to the new fourth quarter MSP report released by Parag Sheth, managing director at Progress Partners. It’s a corporate advisory firm that works with buyers and sellers of emerging growth companies to complete M&A or private placement transactions.
Progress Partners’ Parag Sheth
“The MSPs are yet to see an impact from economic uncertainty,” he said. “If anything, they are seeing growth because more and more organizations, especially technology companies, are laying off staff. They are turning to MSPs for support.”
Progress Partners anticipates continued growth in demand for IT services this quarter.
“The ongoing cuts in staff coupled with the bumpy economic environment means the services from IT firms will continue to be in demand,” Sheth said.
IT/MSP should be a sector that continues to transact where others may struggle through 2023, he said.
Continuous technology upgrade cycles, driven by constant innovation, digital transformation and talent acquisition, will remain on the agenda for well-capitalized companies.
“We therefore believe growth agendas of large corporates and lower valuations will drive M&A activity in the sector, Sheth said.
See our slideshow above for key findings from the Progress Partners report.
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