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Should Your MSP Start A Software Development Business?

Many Managed Service Providers provide comprehensive services in data storage, network administration and IT infrastructure. They may focus on financial institutions, law firms or healthcare verticals. However, many shy away from offering software development services.

Could your MSP be missing out on $1 million projects?

John Beyer of Realized Solutions recently started offering software services to clients. It’s now 60% of their revenue stream.

“As we applied some customized software solutions, it allowed us to be stickier in the market,” Beyer told Ulistic’s Stuart Crawford in a recent podcast.

In fact, the new software service helped Realized Solutions engage more deeply with clients, becoming entrenched in their culture and the natural go-to firm for all their IT needs.

How Can Your MSP Get Started in Software Development Services?

The strength of any MSP lies in its current client base. The more solutions you can offer existing firms, the more you increase revenue without spending a dime on marketing. However, not all MSPs have the staffing expertise to offer software services.

That doesn’t have to be an entry barrier. Simply partner with an MSP that has already done this, such as Realized Solutions, or begin with in-house automation that you can transfer to clients who want to streamline their operations.

“We found networking professionals don’t necessarily understand how applications work. By tweaking some SQL settings, we were able to get one report to run in less than a second compared to 90 minutes before our changes,” Beyer said.

How Do You Introduce Software Services to Existing Clients?

Producing software for your clients is a great way to boost your revenue. You already have a relationship with the client, so broadening your service offering deepens your engagement. You quickly become entrenched in the culture.

Think about the kind of software development that would fit into your current business model. This also depends on your client base. For example, you might have clients who need tablet apps.

You can start out with business analytics. Touring the site, asking what the pain points are and volunteering to automate repetitive tasks are easy wins that get your foot in the door. Automated software services allow MSPs to rapidly grow their service offering, increasing revenue without necessarily increasing staff.

Rather than letting these projects go to specialist firms, build the in-house expertise needed to win the business for yourself. Consider how you can develop software tools with your current staff. Take a pool of your current staff and see what other skill sets they have or are willing to learn to grow the business. Then, deepen your bench strength by recruiting specialized talent.

What Can MSPs Do to Prepare?

MSPs that want to gain revenue by offering software development services to new clients can engage with Ulistic services as a trusted digital marketing firm.

And, of course, you can reach out to Ulistic to find new clients that need the services you can offer immediately. Contact Ulistic today for more ideas on how to successfully add this profitable revenue stream.

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