Yesterday, Paul Dippell at Service Leadership presented new market data on managed service provider financials. On a webinar hosted by Channel E2E, here’s some data that jumped out at me.
SLI has launched a new Risk And Progress Matrix. This balances a providers financial strength against their trajectory. In Q3, 17.5% of providers are both in a “least safe” position financially and not making progress. A mirror – 17.7% are both in a strong position and making great progress. In broader views, about 32% of providers are not making progress financially, regardless of cash position.
Here’s the other detail. There’s a K shaped recovery happening for providers. The best in class are pulling ahead, and the bottom quartile are falling behind.
Why do we care?
Long time listeners know I will be sprinkling this data like seasoning across my thinking, so look for more to come.
Pre pandemic, Forrester said 25% of providers were break even or losing money. Now, 32% just not making progress financially, and the bottom getting worse. My observation – and Paul’s too – -was that this recession is not behaving like previous. Be deliberate Understand your market: industry, geography, and customer base – and build your plan.