Services now make up more than half of the total yearly revenue for technology companies, and managed services are a critical component of that growth trend. It’s time for CEOs to start leveraging managed services to quickly grow their top-line revenue, but many don’t yet know the best way to structure their managed services organization in a way that will yield the best performance. This infographic outlines the most effective ways to build out crucial functions in managed services through strong sales, delivery, and client management.

1. SOURCE: TSIA 2017 Managed Services Benchmark Study© 2017 All rights reserved. Technology Services Industry Association (TSIA)
Will there be a better model in the future?
Stay tuned: www.tsia.com/ms
MS is growing faster than any other service
FACT #1
WHY ORGANIZATION
STRUCTURE MATTERS
In 2011, services
revenue was a little
more than 1/3 of
total tech revenue.
In 2017 it is greater
than 50%.
FACT #2
SOLUTION #1 SOLUTION #2
PROBLEM
Most tech companies are not optimized for
managed services revenue growth
38% 56%
2011 2017
2013 2017
Services are now a top priority for CEOs
From 2013 to 2017,
managed services
revenue grew from
6% of total services
revenue to 23%.
SOLUTION #3 Dedicated MS Client Management
GENERAL SALES
30%22%
DEDICATED MS SALES
Revenue Growth
when using
Operating Income/EBIT
when delivered by
30
25
20
15
10
5
0
30
25
20
15
10
5
0
OTHER SERVICES
17%
5%
MANAGED SERVICES
SERVICES SALES
89%GENERAL SALES
94%DEDICATED MS SALES
Contract Renewal Rate when using
0 10 20 30 40 50 60 70 80 90 100
30
25
20
15
10
5
0
6%
23%
THE AVERAGE NET-NEW MANAGED SERVICES
Revenue Growth Rate is 27%!
Dedicated MS Sales Dedicated MS Delivery
80%