ChannelTrends: Boost New Practice Success with Outsourced NOC and Helpdesk

A frequent catchphrase many business coaches use is that “you’ve got to work smarter, not necessarily harder, to be successful.” Anyone who has been part of the IT channel for any length of time knows how true that can be. Automation is a critical component of most solution providers, from global MSPs to a local one-man (or woman) shop.

Over the years, I’ve had the privilege of meeting a number of small IT service company owners who have leveraged their strategic business partners, professional services automation (PSA) systems and remote monitoring platforms to raise their revenue per employee to insane heights. Although that model works for some extremely driven individuals, the tremendous effort required to get to those sales levels isn’t for everyone. It does serve as a lesson to the majority of solution providers who are trying to improve not only their bottom lines, but their customer service levels. You don’t have to commit to that level of collaboration, but even limited engagements with outsource partners can help MSPs and VARs make significant improvements in profitability and customer service.

Help Desk Competition Heats Up
During a week when temperatures throughout the U.S. hit all time highs, Zenith Infotech, who will be at Breakaway’s Technology Vendor Fair next month in Washington, D.C., added a little more sizzle to its virtual helpdesk solutions with the introduction of a new program, NOC Service Miles. Intended to bolster awareness and use of the company’s NOC, this plan allows partners to earn service credits for being enrolled in the program and for every agent installed. Service providers also can buy additional credits at any time and redeem them for project work performed by Zenith's NOC.

While the news didn’t signal a major new focus or portfolio change for the company, it does signify the competitive environment the organization is working in. The creation of incentive programs typically indicates the point of market saturation, when the marketing teams roll out new differentiators to grow business and create brand loyalty. In this case, Zenith competes with a growing number of outsource helpdesk and NOC providers, including Cloud Services Depot, GMS Live Expert, Live Virtual Help Desk, NetEnrich, Network Depot and SYNNEX’ OnDemand IT. While a NOC and help desk differ in their operations, each serves as a collaborative service for VARs and MSPs, allowing them to outsource the parts of their business that they aren’t ready or willing to support themselves.

What’s fueling the competition and encouraging Zenith to incentivize their partners? Distributors may be a major contributor, as Ingram Micro (through their NetEnrich alliance) and SYNNEX continue to enhance their portfolios and have the advantage when it comes to MSP/VAR reach. With significant numbers of solution providers already in their database, each company can leverage their marketing, sales, and communications teams to recruit new partners to their NOC and helpdesk services. That is a great advantage to improve numbers, but the real test is what each company has to provide that meets the needs of their respective audiences.

Help with New Verticals
Beginning an IT services business typically starts with a focus on one or two key markets with a small team (or individual) supporting each company. That broad service plan becomes a challenge as the organization grows and adds new service practices. Specific technology expertise is required to attract and support clients in these markets, and hiring full-time technicians (as well as sales professionals) with those skills is not a cheap proposition. It’s risky to invest a significant number of resources prior to securing new business; which is another reason outsource partnerships are on the rise.

The alternative is to engage an outsource specialist to service the clients in your new vertical, at least for help desk. If you see an opportunity to support retail stores in your immediate area, but currently lack a technician with proficiency in POS (point of sale) and other related solutions, a third-party support organization may be able to supply that talent. When you’ve secured a number of clients and it becomes a viable vertical practice, hiring or training your own specialized employee may make sense economically. Leveraging third-party business partnerships allows you to build a new technology or vertical market practice at your own pace, adding resources when you can justify the expense.

Help desk and NOC services can help improve the value your organization provides to specific markets, as well as your overall business goals. That’s the main reason I don’t believe their segment of the tech industry has reached the point of commoditization, despite the first signs of market maturity from Zenith and industry distributors. Only time will tell…

Brian Sherman is founder of Tech Success Communications, specializing in editorial content and consulting for the IT channel. His previous roles include chief editor at Business Solutions magazine and industry alliances director with Autotask. Contact Brian at Bsherman@techsuccesscommunications.com.