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2025: The Year MSPs Fully Transition to Outcome-Based Service Models

2 min read

As 2025 begins, the IT industry is experiencing significant transformation through the shift to cloud-based services, the adoption of advanced technologies like AI and data analytics, and the rise of edge computing. To keep pace, many IT channel partners are  predicted to transition to outcome-based service models, addressing customer demand for solutions that extend beyond traditional service platforms. This marks a strategic shift for partners striving to remain competitive and relevant in a rapidly changing market.

Traditionally, IT channel partners operated under a transactional model focused on sales volume over long-term value creation, offering standalone products with limited integration into clients’ existing systems. Partners measured success by the number of products sold, often neglecting the broader business outcomes of their clients.

According to a recent Gartner survey, 75% of customers now expect personalized solutions tailored to their bespoke business challenges. This evolution in customer demand is driving IT partners to adopt a value-based model, enabling them to more effectively service their clients’ more complex business needs.

 

Transforming customer relationships for lasting impact

The move towards outcome-based models shifts the focus from selling products to delivering meaningful results that drive client success. The benefits of an outcome-based model include:

  • Digital transformation: Rapid technological advancements make it more important than ever for businesses to find partners who can help them with these challenges. IT channel partners that use tools such as data analytics and AI can boost their clients’ decision-making, operational efficiency, and competitiveness in the marketplace.
  • Stronger, more strategic client relationships: Clients are more likely to remain with partners who deliver measurable results that align with their business objectives, reinforcing the importance of a value-oriented approach to creating stronger relationships.
  • Collaboration enhances innovation: The shift towards ecosystem collaboration allows partners to provide integrated solutions that address broader business challenges. By working together, IT channel partners can innovate more effectively and accelerate market delivery, resulting in comprehensive solutions that are better suited to meet client needs.
  • Revenue growth: By aligning strategies with value delivery, partners can access new revenue streams and establish stable, mutually beneficial partnerships. For example, a channel partner that helps a client achieve significant operational improvements can share in the financial gains, creating a win-win scenario.

Overcoming challenges to embrace value delivery

However, the transition to outcome-based models is not without its challenges. It requires a significant shift in mindset and operations. Channel partners must invest in understanding their clients’ business challenges and developing capabilities to deliver integrated solutions – whether that’s through investing in additional expertise or the latest IT tools.

Despite these challenges, the benefits of value-based outcomes far outweigh the obstacles. The outcome-based approach not only allows partners to differentiate themselves in a competitive market but also helps them build stronger client relationships and drive long-term growth. The shift to a value-based model is essential for staying competitive and leading the market in setting new standards for excellence.

Ready to Elevate Your Cloud Strategy?

At Surveil, we understand the importance of delivering value-based outcomes that fuel growth and innovation. Our cloud optimization platform empowers IT channel partners to maximize efficiency, reduce costs, and enhance client performance with data-driven insights. Explore how Surveil can help you stay ahead of the curve and succeed in a rapidly evolving IT landscape.

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Azure | Microsoft 365
7th January 2025
By Bethany Keeling

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