Managed service providers who specialize in serving particular vertical markets – healthcare, manufacturing, education, not-for-profit, government, financial services, and others – tend to enjoy better financial performance than their peers in the MSP market.
I first noticed this trend several years ago when I was putting together a list of top MSPs for another publication. In general, the MSPs who said they specialized in any one of many vertical markets saw higher revenues and better profit margins than those who didn’t have a vertical market specialization.
Vertical Market MSPs Make More Money
It makes absolute sense. If you specialize in sales to a particular market – say, healthcare – you better understand the pain points of your customers and you can refine your tech stack and your messages to fit that market. You can speak the language of customers and potential customers because you live in that world.
You’re more likely to see better profits, too. That’s because your staff has a better understanding of the specialized software that may be used in that vertical market. They know the particular implementations and their quirks. Time could possibly be saved on resolving tickets and building your knowledge base for the tech problems of that vertical industry.
Plenty of MSPs have decided to specialize in vertical markets over the past decade, and they are reaping the rewards. Last year we featured 100 such MSPs on ChannelE2E’s 2022 Top Vertical Market MSPs list. This list of Top Vertical Market MSPs has a rich history, and you can see our lists that go back to 2016 here. We’d love to add you to the 2023 list. But the deadline to participate is here.
Be Featured on the List: 2023 Top Vertical Market MSPs
You still have time to be a part of this important industry research and list. It takes 15-25 minutes to fill out our survey to participate in the 2023 list. But don’t miss the opportunity, which closes when the deadline hits on February 28.