Digital Transformation Drives Biz Opportunities for MSPs

The global business focus on modernizing operations through digital transformation offers MSPs broad opportunities for services and revenue growth.

That is one of the key conclusions of a new 2025 State of Digital Transformation report from global systems integrator TEKsystems, which was compiled using responses from 855 technology and business decision-makers through an online survey from November to December 2024.

So, how can MSPs help their customers fill tech gaps during this time of continuing digital transformation?

“The top three digital transformation needs MSPs can address are AI and ML, cybersecurity, and automation,” Cara Bilderback, director of MSP client engagement at TEKsystems, told ChannelE2E.

The growth, market interest, and adoption of AI are a competitive differentiator for IT decision-makers looking to disrupt and innovate within their organizations, the report concludes.

The report provides some clear strategies and direction for MSPs looking to find an edge in the marketplace, said Bilderback.

“To better serve customers’ digital transformation needs, MSPs should align with strategic vendors capable of providing a full suite of services, spanning contingent staffing and outcome-based solutions,” she said. “By narrowing their vendor base to those who can address a broad spectrum of needs – particularly in areas like AI, generative AI, and cloud technology – MSPs can streamline operations and ensure more impactful results.”

One way to do that, said Bilderback, is to share a customer’s digital transformation goals with those vendors to help create a targeted, collaborative approach to solving their complex challenges. “Success with transformative technologies like generative AI depends on high-quality data, robust security, well-defined use cases, and fostering adoption through trust and continuous engagement, all of which MSPs can drive through thoughtful vendor alignment and strategic collaboration.”

Skilled Talent Shortages Hinder DX Progress

For the last several years, businesses have struggled to find enough skilled technology workers to fill critical roles. Interestingly, the TEKsystems report found that nine out of 10 organizations still do not have the talent necessary to drive successful digital transformation projects. But there are ways that MSPs can work to solve these issues, said Bilderback.

“Skilled talent shortages in technology remain a challenge, but MSPs can help by fostering a culture of continuous learning and driving innovative solutions,” she said. “By partnering with vendors that excel in consultant care, targeted talent delivery, and upskilling programs, MSPs can build robust pipelines of skilled talent in areas like AI, machine learning, and cybersecurity.”

MSPs can also help by supporting organizations to engage their employees through cross-functional teams, feedback loops, and open communication, which can re-align workers with changing business needs, said Bilderback. “Additionally, MSPs can implement change management strategies, enabling smooth transitions and long-term success in navigating talent gaps and advancing digital transformation.”

Ram Palaniappan, the chief technology officer at TEKsystems Global Services, agreed.

“MSPs should continuously invest in building a modern workforce for the future” to help their customers solve their technology problems, he said. “The evolution of AI and GenAI is changing the overall landscape of the skills needed for the future. For successful customer engagements, you need a workforce that is fully conversant with the latest tools and technology. “

In addition, he said, MSPs need to invest in technology aligned with their customers' business strategies, including GenAI tools, AI/ML specialization, investing in automation technologies, and other areas.

“Cloud, data, and AI are three foundation layers for any digital transformation along with obvious experience,” said Palaniappan. “MSPs need to create a full stack of services that will include the three foundation layers in their solution and not as separate initiatives or engagements. In the future, we will see anything we build will be data-driven.”