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Digital Transformation

Understanding the Key Differences: Service Integrators vs. Managed Service Providers (MSPs)

By Jonathan Collins
July 04, 2023

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    The uniqueness of Service integrators

    Service integrators possess a unique ability to effectively seamlessly integrate multiple IT services and systems into a holistic solution for businesses. They act as conductors, orchestrating disparate sections to play in harmony and deliver a coordinated performance. From cloud services and applications to networks and databases, service integrators ensure that all parts function cohesively, resulting in improved efficiency and streamlined operations.

     

    This exceptional capacity to create a unified ecosystem from various technological elements distinguishes service integrators from other IT service providers, such as Managed Service Providers (MSPs). Although MSPs also offer crucial outsourced IT services, their focus and approach differ significantly from that of service integrators.

     

    In the following blog, we will explore the differences between service integrators and MSPs. Our aim is to provide you with a clear understanding of their unique roles, strengths, and how they can each contribute to the growth and efficiency of your business. So, let us dive in and unravel the distinctive worlds of Service Integration and Managed Services

     

    Market Expansion and the Shift in Focus

    Traditionally, service integrators were more concentrated on mid-market businesses and larger enterprises. But, the tech environment changes swiftly and so does the market focus. A discernible shift towards small businesses has broadened the horizons, leading to market expansion and variety of clientele for service integrators.

     

    MSPs and their Baseline Approach

    Managed Service Providers (MSPs) adopt a 'baseline approach'. They offer a standardized set of services or tools, but often neglect the individual needs of the client's businesses or teams. MSPs usually recommend that their clients use their preferred technology for antivirus, management tools, etc., instead of optimizing the client's existing tech stack.

     

    This even extends to complex solutions like switches, routers, and network security products. Moreover, MSPs frequently assign the responsibility of application development to other players in the technology services ecosystem, whether it's external vendors or internal teams.

     

     

    Collaboration, Prioritization, and Trust-Building

    Service integrators stand apart from MSPs in many ways. About 80% of our time is dedicated to collaborating with other parties to unify all teams and tools into a seamless unit. This interaction is crucial to building the right team for each project and blurring the lines of role boundaries.

     

    We rank business objectives in order of importance and prioritize performance improvement plans and revenue generation strategies accordingly. Our objective is to maximize the application usage for our client organizations, streamline the teams managing them, and build trust between all parties. This includes an extensive dive into the comprehensive DevSecOps stack, overseeing the entire software delivery lifecycle.

     

    Vendor Management and Integration

    As service integrators, we manage a group of vendors' products or services to provide our clients with a comprehensive and customized solution. With the constant tech environment changes, vendor management needs to evolve into vendor integration. This shift emphasizes delivering a complete solution rather than just overseeing individual components.

     

    One of our distinguishing features is being technology-agnostic. Unlike MSPs, who often favor what's familiar or profitable to them, we pick the best product for each specific purpose and tailor our solutions to our clients' needs. Thus, service integrators typically deliver greater business value.

     

    Building the Perfect Team

    If a tech service provider is experiencing performance problems or is slow in delivering a revenue-generating project, the ability to mobilize an efficient team can be invaluable. This rapid response team can consist of various players, each contributing their expertise to resolve the issue. This might include:

     

    • In-house experts who understand the project in-depth and can provide essential insights.
    • A Chief Technology Officer (CTO), who can provide strategic direction and decision-making based on their broad understanding of the organization and its technological needs.
    • Members from our team, providing fresh perspectives and specific expertise as needed.
    • External providers, who can bring specialized knowledge, experience, or resources that may not be available within the organization.




    Transparency in Services

    Transparency is a hallmark of service integrators. We avoid the reselling gig, common among MSPs, as it often compromises their impartial approach. In most cases, we operate with open book margins, maintaining transparency about the services we provide, the pricing strategy, and the business valuation.

     

     

     

    In Conclusion

    While there are similarities between MSPs and service integrators, they differ significantly in their approach towards clients, technology, vendor relationships, marketing strategy, sales and marketing, performance improvement, and team integration. Service integrators tend to offer personalized solutions that prioritize each client's unique needs and, as a result, deliver greater business value in the long run.

     

     


     

    3Gi have recently published a study on what the top digital transformation challenges facing business leaders in 2023 are. You can read the full report here!

     

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    About Author
    Jonathan Collins

    Jonathan has worked in enterprise technology for over a decade - With a real passion for understanding cutting-edge technology and the latest IT innovations, his aim is to help organisations serve more customers, build better relationships, streamline operational processes, improve user's efficiency and deliver business continuity across the technology landscape. This is achieved by offering top-tier consultancy at the initial engagement stage. By understanding the clients buying criteria, effectively ensures that the right architectural base solution is delivered for the right commercial value while making sure that the board of Directors can see a significant return on their investment.

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