New Study: ‘Effective Project Management a Crucial Differentiator for MSPs’

Busy MSPs are constantly juggling a wide range of critical business IT tasks for SMBs and other clients, but keeping track of it all is a huge challenge for MSPs who are not using broad project management tools to help them keep order amid the chaos.

That is the conclusion of a new 21-page State of the Industry 2024: MSP Project Management Trends & Impacts report, released recently by Moovila, which offers an AI-driven project automation platform built for MSPs. The study, which gathered responses from senior-level executives and project management leaders inside more than 100 MSPs,  found that more than 65% reported difficulties in managing project timelines and meeting client expectations, while nearly 70% said they struggle with resource management, which leads to project delays and increased operational costs.

“The biggest takeaway we found in the research is that effective project management is a crucial differentiator for MSPs,” Mike Psenka, the CEO at Moovila, told ChannelE2E. “It directly impacts their profitability, scalability, and ability to meet client demands.”

The study also found that more than 80% of the respondents said they are interested in adopting AI and automation technologies that could help them improve their project management capabilities while also reducing their manual tasks.

“We found that many MSPs still rely on Excel spreadsheets or tools like MS Project, and that only 30% of them use PSA (professional services automation) modules for project management,” said Psenka. “While some MSPs adopt more sophisticated solutions, adoption remains fragmented.”

A major problem is that while 62% of the respondents said they recognize the importance of project management for profitability and growth, bringing in and effectively implementing these tools remains a challenge, he said. “Since MSPs run their businesses [using] PSA [modules], they have been provided with the limited project management capabilities within the PSAs.” And worse, they may only have additional access to disjointed third-party tools, which can require duplicate entry, lagging timelines and inaccurate forecasting, he added.

So what can MSPs do to improve their project management capabilities?

An important conclusion of the survey is that MSPs must find and implement project management tools that integrate well with their existing PSA tools, he said. That would give MSPs important capabilities including autonomous monitoring, proactive issue detection to enhance profit margins, as well as increased customer satisfaction rates and competitiveness., he added.

MSPs Must Evaluate Their Project Management Needs

To make this all happen, said Psenka, MSPs must map out an effective strategy to accomplish these tasks.

“MSPs can evaluate their project management needs by starting with an analysis of recurring pain points in project execution, such as missed deadlines, low client satisfaction, or margin erosion,” said Psenka. “They should also review their current tools to identify limitations that hinder efficiency and scalability. Conducting internal surveys to gather feedback from staff can help uncover operational inefficiencies and areas for improvement.”

In addition, MSPs must get into the trenches and research integrated tools that address these challenges while also consulting industry peers to gain their insights, said Psenka. “This approach helps MSPs understand how they compare to others in the industry and identify the best options based on their existing technology stack.”

Other Survey Highlights

Several other notable statistics were reported in the survey, including that 50% of the respondents said that project management challenges impair their company’s profitability, while 30% of the responding MSPs said they primarily use the project management module inside their PSA platforms for managing projects, which leads to operational inefficiencies, misalignment, and lack of project visibility.  Inaccurate project timelines due to shifting schedules and unplanned tasks were cited as the top-ranked factor negatively impacting the ability to manage work effectively, according to the survey.

The Moovila survey, which collected data from its respondents in June 2024, was conducted in collaboration with The Channel Company. Survey respondents included roles such as CEO/Business Owner, Senior Executives, Director of Professional Services, and Director of Project Management/PMO/Delivery.