As end user hardware becomes more reliable and competition for hardware sales increase, many managed service providers (MSPs) are finding their hardware piece is carrying increasingly lower margins. However, for MSPs that offer an end to end solution, hardware installations and maintenance still forms an integral part of the service they offer to customers.

It is not yet possible to move all support to more profitable remote fixes and there is still a need for onsite technicians, so how can you maintain an effective hardware installation piece when the margins are low?

Part of the solution is to diversify your hardware piece as much as possible. By offering a mix of managed IT solutions, server installations and cloud services, you can limit the impact of reducing hardware margins. Many customers will still operate with legacy gear that will need replacing, but you can offset this low margin activity by opening the door to more profitable software maintenance down the line.

However, even though current hardware is fairly reliable, it will sometimes need replacing, and customers will often insist on an SLA with a guaranteed response time. In these cases it is difficult to maintain good margins when using your skilled workforce to do simple swap outs.

This is where working with the right outsourced technical service provider can be very beneficial. Outsourced technical services providers will often have a nationwide workforce and will charge on a case by case basis. This allows a lot of flexibility where you can pick and choose which jobs are simple swap outs and can be completed according to a script and which jobs require a more skilled field workforce.

In the long run this can free up your skilled workforce to perform jobs that will provide a higher revenue while still meeting the maintenance SLAs that you have promised to your customers.

ByBox has a proven, UK wide technical services division and over 30% of CRN's top 100 VARs are already utilizing our supply chain solutions. Want to find out more about us? Get in touch by filling in your details at the bottom of this page!