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It is expected that by 2025, more than 60%1 Organizations will depend on MSPs for their operations and security.
As managed service providers are used more frequently, they are under pressure. In the IT department, for example, 27%2 All companies – including MSPs – had a skills gap in 2022.
A managed services provider that lacks technical support skills will struggle to effectively help clients manage their business goals. But there is more to it than meets the eye.
In this article we will discuss:
- Conduct a skills gap analysis to explain why there is a talent gap
- Explain its results in more detail
- Suggest 3 best practices for MSPs to mitigate this challenge
Why do managed service providers face skills gaps?
There is a general shortage of IT professionals.
For example, in the US it is +88003 Cybersecurity professionals are working, but only +20,000 are available in the 15 states that need them most.
Reasons for this disparity include:
1. High rate of technological progress
One reason for this disparity is the rapid pace of technological progress. Technologies such as AI, IoT, and cybersecurity are growing faster than the number of specialists in these fields (Figure 1).
2. Failure of the education system
Another reason is the failure of the education system to keep up with the growing demands of the IT industry.
We’re looking at US:681 again4 Universities offer computer science as a major, compared to 995 which offer traditional majors such as accounting.
3. Aging workforce
The average IT professional is 42 years old5. As more of the current workforce retires, they lose valuable knowledge and experience that cannot be easily or quickly acquired.
4. Lack of diversity
The IT sector is dominated by men (77% vs. 23%).6). The under-representation of certain groups, such as women and minorities, means that many organizations such as MSPs are missing out on potentially qualified professionals.
5. Global competition
If we look at the US IT staffing job market as a representation of the global labor market, we can see how companies around the world are competing for a limited pool of skilled IT workers.
For example, 78%7 IT organizations around the world report difficulties in finding and retaining talent.
How do MSPs experience low tech support?
MSPs with a lack of qualifications will face the following complications. Note that these symptoms are similar for any company in any sector that does not have enough talent.
1. Decrease in efficiency
MSPs rely heavily on the technical expertise of their workforce to meet the basic needs of their clients and customers. Service providers with a talent gap may face delays, errors, and inefficiencies in solving customer problems.
This can reduce their satisfaction and prevent them from staying.
2. Increased costs
If the service provider does not have the skills required for the job, it will have to hire more staff or outsource tasks to compensate.
This will increase operating costs, which will affect profitability.
3. Limited Service Offering
When MSPs have skills gaps, they are prevented from offering a broad range of services or using new, everyday technologies to meet their business needs.
This reduces their competitiveness and limits their growth potential.
4. Damage to reputation
Failing to meet their clients’ business goals due to a skills shortage, MSPs are plagued by negative word of mouth and online reviews that undermine them.
5. Difficulty adapting to changes in the industry
The technology landscape is constantly evolving. More than half (54%)8All employees will need “significant” re-skilling by 2022. And IT executives cited a lack of talent as the biggest barrier to adoption at 64%.9 from emerging technologies.
If business leaders don’t train their employees to bridge skills gaps, they will struggle to stay competitive.
What are the best practices for MSPs to overcome skills gaps?
1. Use automation and emerging technologies
Reduce manual workload and increase efficiency by using automation tools such as:
- process automation and conversational AI tools such as RPA, chatbots and workload automation to automate tedious and repetitive tasks for MSPs
- Remote Monitoring and Management Tools (RMM)To automate patch management, integrate performance monitoring and remote management capabilities
- Professional Service Automation (PSA) toolsFor project management, time tracking and reporting
- IT Service Management Tools (ITSM)To automate processes related to incident management, change management and service request management
- IT documentation toolsTo record, organize and manage data related to networks, software and processes
- Network management toolsFor automating network mapping, performance monitoring, configuration management, and troubleshooting
Learn more about MSP automation.
If you’re looking for an RPA partner to help you automate your process, download our RPA Partner White Paper with Automation Tools <$2000 Annually:
2. Invest in ongoing training and development programs
Ask your teams to attend business development programs to bridge the skills gap. The most common training programs for MSPs include:
- CompTIA Managed Services Trusted Brand: Provides a framework for MSPs to evaluate their service delivery processes, identify areas for improvement, and align their operations with industry best practices.
- ConnectWise University: Offers online courses, webinars, certifications and training programs covering sales, marketing, finance, operations, customer service and more.
- Dato Academy: Offers training programs specifically focused on backup and disaster recovery solutions for MSPs.
- ITIL (Information Technology Infrastructure Library): MSPs can pursue ITIL certification programs to gain knowledge about IT service lifecycle management, service strategy, design, transition, operation, and continuous improvement.
- Microsoft Partner Network: Offers sales and marketing support as well as technical training on Microsoft products and solutions such as Azure cloud services, Office 365, Windows Server, etc.
- Continuum University: Offers online training courses for MSPs on topics such as cybersecurity best practices, use of remote monitoring tools, service desk management techniques, and more.
You can also create channel partners with universities, colleges and vocational schools to create internship programs or offer specialized courses. These collaborations can help develop a pipeline of skilled professionals and ensure their industry readiness.
3. Embrace variety
Actively promote diversity and inclusion in your organization to attract a wide range of talent and benefit from diverse perspectives and experiences. To this end, MSPs can:
- Supporting ERGs (Employee Resource Groups). which focuses on specific topics or groups of connections within your organization to provide networking opportunities, support and advocacy
- Recruit diverse individuals representatives of different backgrounds, cultures and demographics by implementing an equal opportunity policy
- We offer mentoring programs By pairing new hires with experienced team members to facilitate career guidance and development
- Review policies and procedures Regularly ensure that discrimination is minimized and that all employees are given an equal chance of success
More about MSPs
To learn more about MSPs, read:
- “Managed Services Market to Reach $393.72 Billion by 2028”. GlobeNewswire. July 7, 2022. Retrieved July 19, 2023.
- What are the technical skills gaps in your company today and what are the expected gaps in 2025? statistician. July 7, 2023. Retrieved July 19, 2023.
- “Cybersecurity Analyst Demographics and Statistics in the US.” 2023. Read on 19 July 2023.
- “Colleges that offer computer science majors.” US News. 2023. Read on 19 July 2023.
- “Information Technology Occupational Demographics and Statistics in the United States.” It’s zippy. 2023. Read on 19 July 2023.
- “Information Technology Professional Demographics and Statistics in the United States.” It’s zippy. 2023. Read on 19 July 2023.
- 58% of employers believe that artificial intelligence and virtual reality will be job creators. working group. June 8, 2023. Retrieved July 19, 2023.
- Upskilling and upskilling: A strategic response to changing skill requirements. LinkedIn. October 22, 2019. Retrieved July 19, 2023.
- “Gartner Research Shows Lack of Talent as Biggest Barrier to Adoption of Emerging Technologies.” Gartner. September 13, 2021. Read on July 19, 2023.
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