MSP 4.0: FROM CONTINGENT WORKFORCE MANAGEMENT TO CONTINGENT TALENT EMPOWERMENT
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www.everestgrp.com | EGR - 2021 - 25 - V - 4434
Over these years, the industry has demonstrated increased global adoption, as Exhibit 3 depicts.
The MSP industry also demonstrated resilience in the face of COVID - 19 – most customers were
satisfied with their providers' response to the pandemic. (See Exhibit 4.) Major MSPs were able
to transition their employees from remote to home offices within seven to eight days in key service
delivery locations such as Hyderabad, India. Anticipating disruption, COVID - 19 BCP plans were
already in place and were implemented effectively through IT SWAT teams in terms of hardware
requirements (procuring additional laptops, additional battery packs), software requirements (data
security and VPN installation), connectivity requirements (procurement of additional bandwidth, internet
installation boosters at employee homes) and employee welfare measures (counseling and training).
Such swift and effective responses helped the MSP industry achieve a V - shaped recovery,
as Exhibit 5 depicts. This resilience in the face of the pandemic has paved the way for the next
generation of MSP, or MSP 4.0.
17.0%
CAGR
11.7%
XX%
Global market size (annual spend under
management) and growth since 2010, in US$ billion
EXHIBIT 4
Satisfaction with service providers'
COVID - 19 response
Source: Everest Group MSP buyer survey with 77
respondents
Almost buyers were highly satisfied with
their providers' COVID - 19 response
Overall MSP buyer satisfaction score in 2020
was marginally higher than in 2019
EXHIBIT 5
MSP industry growth
Source: Everest Group (2021)
80%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
2018 2019
Q1
2020
Q2
2020
Q3
2020
Q4
2020
EXHIBIT 3
MSP industry evolution
Source: Everest Group (2021)
160 - 165
2015 2019
102 - 107
45 - 50
2010
