MSP bosses to face off at CRN MSP North

Is offshoring, or outsourcing, core services the way forward for MSPs? Two leading MSPs will debate this burning question at the upcoming CRN MSP North event

Whether to offshore - or completely outsource - core service desk functions is a critical question facing all MSPs.

This is why we have asked bosses from two of the UK's leading MSPs to debate the subject at our upcoming MSP North Conference.

Arguing the case for keeping core services in-house and delivered by a UK-based team will be Todd McQuilkin, the founder and CEO of Nottingham-based MSP Air-IT.

McQuilkin will be joined on stage by JP Norman, director of technology, security and governance at Amicus ITS, a Southampton-based MSP which claims to be gaining traction with its Indian network operations centre.

'Losing control?'

The ‘master MSP' model - where MSPs hive off services to a larger provider - is gathering traction. According to research from Service Leadership, MSPs which outsource functions to a ‘master MSP' tend to generate higher margins than similar counterparts.

Others are offshoring service desk functions by building a direct presence in lower-cost countries such as India, Poland or South Africa.

McQuilkin, however, will argue that surrendering control of a key piece of the customer experience - whether through outsourcing or offshoring -harms the MSP's reputation long term.

"If we outsource our core components then we are becoming a reseller of MSP services, and we are not fully fledged MSPs as we are losing control - especially if we go offshore," McQuilkin said in an article on the subject ahead of the event.

'Customers want to talk to our Indian team'

In contrast, Norman will argue that the offshore model is gaining traction among Amicus' midmarket and public sector customers. Its Indian team provides remote support to 32 per cent of the UK's 111 service, he pointed out.

"What I can tell you is that in the last two years our Indian operation has gone from 23 to 46 or 47 individuals on the back of growth," he said.

"We will tend to do two different cost models: one that is purely costed out of staff in the UK, and one that shows a mix of at least 80 per cent remote fix and with India in the equation. What we've found in the last year or so is that customers are actually wanting to talk to our team in India, as they appreciate they have these technical skills."

McQuilkin and Norman will be debating the topic with CRN editor Doug Woodburn at MSP North, which takes place on 26 June.

The day's packed agenda also features a keynote from Manchester-based tech entrepreneur Lawrence Jones MBE, who will be sharing his tips on how to build a successful business in the MSP space.

A panel featuring four private equity bosses, who will be dispensing their killer tips on how MSPs can build value in their business, will be among the day's other highlights.

Also at the event will be ANS CEO and CTO Paul Shannon and Andy Barrow, who will be revealing how the Manchester-based provider "burned the boats" of its hardware business to become a cloud provider.

See the full agenda here.