Australian MSPs optimistic about 2023

Australian managed service providers (MSPs) are optimistic about their prospects for 2023, anticipating an average revenue increase of 28.4% despite the turbulent macroeconomic climate, research published by Barracuda Networks suggests.

A report prepared for the company by Vanson Bourne revealed that Australian MSPs are on average expecting a revenue increase to $25.34 million. By comparison, globally, MSPs are expecting a 25% revenue growth to over $16 million.

The report found that Australian MSPs expect to introduce an average of seven new services for customers this year, up from five in 2022. Meanwhile, more than half (58%) are looking to expand their client base into new industry sectors.

Conversely, 47% are concerned about the heightened competition in the MSP market compared to 2022, while 40% believe that significant improvements are needed in their ability to keep up with the latest technology and security trends.

Australian MSPs are also facing difficulties attracting talent and maintaining wellbeing for existing employees. The report found that 22% of MSP employees are reporting a high level of employee stress.

Barracuda MSP Regional Account Director Luke Smith said the findings are significant considering that MSPs have become a vital component of the cybersecurity landscape.

“Our research shows how seriously MSPs take that commitment. It highlights some of the opportunities MSPs see in 2023 as well as the challenges they face competing for talent and market share alongside other commercial entities,” he said.

“We hope the findings will help the security community to better understand the needs and concerns of MSPs.”

Image credit: iStock.com/Pict Rider