Managed Service Provider Trends And Predictions 2025 : What To Expect?

Winding up 2024, we have seen significant growth in the MSP industry. An analysis by Canalys revealed that the market grew by 13% in 2024, reaching a significant value of US$475 billion. This not only indicates the growth opportunities the industry will have but also potential challenges to look out for. 

Businesses and individuals have never-ending requirements with IT; however, they may not be well-equipped to handle these needs and thus, MSPs come into the role of being their on-the-house IT team that handles their systems, networks, software and everything under the umbrella of technology. Opting for a managed service provider greatly enhances a business’s IT support compared to hiring an internal team.   

2025 is a year approaching with opportunities, potential and open doors for managed service providers to explore and make breakthroughs. So, what are we embracing and what predictions do we have on the table for MSP in 2025? Let us find out. But first, why do businesses choose MSPs to manage their IT segment and not build one? Financially, they may have to break the bank to have the tools, techniques and resources to find the experts, train them and then place them into their positions. Bypassing these procedures, simply hiring an MSP that already has a team gathered can very well fulfil their requirements at half the cost.  

MSP Trends To Embrace In 2025    

MSPs play a crucial role in ensuring companies leverage technology to their benefit and establish their dominance in their niche. For 2025, MSPs can see the following development in their industry and its impact can be crucial in the years following. 

1. Embracing Artificial Intelligence: Now, businesses have embraced AI to improve the productivity of their workforce by automating routine tasks that humans get stuck with. By doing so, they liberate their human resources and direct them towards more important and meaningful tasks.

The most prominent AI technology that is trending and will continue to be demanded from MSPs in 2025 is generative AI. Generative AI is the technology that takes commands and delivers learned information and for MSPs, the use cases of generative AI have proven extremely effective. They streamline tasks for MSPs by introducing programs like Ticket Sentiment Analysis (it uses AI to identify emotions in text from customers, whether it is positive, negative, or neutral tones to understand their opinions and feedback), Ticket Summary (the AI briefly describes the reasons attached to the ticket with essential keywords that the engineers can work on), Resolution Guides (for quickly solvable technical issues, AI can offer resolution guides that provides a step-by-step process to the support team member and user to follow through), Auto-Updating Ticket Fields(a feature that automatically updates the ticket fields without manual assistance and page refresh), Suggesting Ticket Solutions(supporting tech engineers with applicable ticket solutions) and more. 

2. Demand For Cybersecurity: Businesses have digitalized themselves for growth prospects. However, on the periphery, so is the growth of cyber attackers. In the MSP environment, this means increased demand and competition for the best in the market. To stay ahead of these cyber threats, MSPs that proactively offer a complete-coverage-cybersecurity package to businesses gain an upper hand in the industry.   

Businesses require their confidential information and data to remain within their premises and not in an unexpected intruder’s system. With poor cyber protection, this affects business continuity, impact financially, trust, and reputation and leads to legal repercussions as well. MSPs that support small to medium businesses with their requirement for cybersecurity often stay ahead of the game. With recent developments, it is essential for MSPs to add cybersecurity services to their portfolio for a wider market reach. 

Different cyber issues have birthed different cybersecurity solutions. Some of the trending and prominent ones are as follows:   

ZTA (Zero Trust Architecture)

is a cybersecurity design that is made for the purpose of preventing any breach affecting the organization or any part of the organization. Cloudflare offers Zero Trust Network Access that secures a corporate online ecosystem that for users to have faster and secure access. 

EDR(Endpoint Detection and Response)

is an endpoint threat detection product that monitors and mitigates every endpoint threat effectively. Check Point’s EDR solutions offer a comprehensive security solution that secures remote employees and responds to unusual activities immediately. 

XDR(eXtended Detection and Response)

is a security product that offers detection, identification and analysis of cyber threats and data to ensure, protect and repel attacks effectively. It is THE next-gen anti-virus that responds to cyber threats across networks, endpoints, and systems. Microsoft XDR basically offers businesses overall protection with the use of AI and machine learning to monitor and respond to threats immediately with little manual intervention.   

MDR(Managed Detection and Response)

is the closest to trending security products where MSPs can offer cyber protection by monitoring, threat detection, and response, helping organizations identify and mitigate threats 24/7. Sophos provides MDR to businesses that detect and neutralize threats quickly.   

Ring Fencing

is a cybersecurity barrier placed over software to block applications from accessing any information apart from what is required. Ring-fencing prevents any attempt at vulnerability and limits its use of information. Threatlocker has dedicated services for Ring Fencing wherein businesses can isolate their networks and systems from exploitation via external applications.   

IAM (Identity and Access Management)

is a framework that ensures unauthorized users don’t have free reign over corporate resources and sensitive information. It ensures only the right people have access to such data. AWS IAM offers to manage and scale workforce access securely supporting your data reliability.   

Data Loss Prevention

as the name suggests is a cybersecurity strategy that ensures businesses can prevent loss of their data and detect breaches if any. Imperva’s Data Security Fabric offers data breach protection and compliance incidents by augmenting data controls and helping security staff pinpoint and mitigate data threats. 3.

3. Adopting Automation: MSPs that are in high demand for IT support face a significant scarcity of talent and rising labor costs to deal with all client requirements. If the workforce is tied up with mundane tasks, core customer service will take a backseat, hindering business growth. MSPs have increasingly started to adopt automation to streamline time consuming repetitive tasks.   

The most trending automation systems that MSPs have adopted are RPA (Robotic Process Automation), Workflow, and AI solutions that do most of the front-line tasks such as user provisioning, software installation, first-level service desk tickets, monitor backups, self-recovery from health check alerts, etc. 

Rewst and PIA are MSP-focused vendors that offer a list of features that MSPs integrate into their automation systems, conducting routine tasks like clockwork without human intervention. Rewst is a tool that automates processes and documentation, while PIA leverages the use of AI to automate their existing PSA for improved efficiency, ticket management and customer experience. 

While Rewst offers automation of processes and documentation, PIA  focuses on industrial and machinery automation for better and sustainable tech practices. 

4. Mergers and Acquisition: Rising costs, the profitability factor, expansion and evolving needs coupled with the lack or shortage of talent contribute towards MSPs opting for business exit and the rising trend of M&A. Small MSPs can gain competitive advantage through mergers and acquisition by scaling their growth at cost-effective routes. M&A offers opportunities to increase the capabilities of MSPs in order to stay ahead in the market and accelerate their capacities in the fast-evolving industry.    

Bigger MSPs, on the other hand, grow their networks by merging and acquiring smaller MSPs. With expert staff and sufficient talent, they’ll be able to fill the gap of expertise and ensure customer satisfaction while having a new geography under their belt. 

5.Widespread awareness of cyber insurance: As much as cybersecurity is gaining relevance, the popularity spreads to the need to have cyber insurance that covers the loss they might face in the event of a cyber breach. MSPs who have this service under their belt are already several steps ahead and ready to embrace 2025. By bundling services, MSPs can offer a better package, addressing both protection and risk transfer for clients. 

6. Outsourcing IT Requirements: Though automation curates a system to get low and middle-level tasks done without the interference of humans, core and customer-centric tasks depend on human expertise. And sometimes automation might need human intervention. By 2025, MSPs will continue to expand and with their existing bottom line accessing industry-standard processes and people can get difficult. 

Businesses don’t just need 9-5 coverage but overall, all day and night, coverage. Thus, the trend of outsourcing their requirements to white-label partners helps MSPs overcome these challenges. White-label partners, exceptionally cover the talent gap MSPs experience at cost-effective rates. 

Key Figures Of The Industry Embracing Change 

The future of the MSP industry is about embracing innovation and end-user experience. MSPs who adapt and adopt the upcoming trends that impact the industry have already leveraged their skill, efficiency and competency in the market. Companies that welcomed innovation are thriving in the dynamic managed services industry—here are the top 2025 MSP trends shaping these industry leaders. 

1. Worksent: With its head office in India, Worksent is a white-label service provider that caters to MSPs and MSSPs remotely. Their services revolve mainly around NOC, SOC, Helpdesk and Dedicated Tech requirements.   

Knowing the vastness of the digital landscape, Worksent has equipped itself with a team of experts that is focused on assisting MSPs by taking over after-hours and major tasks. 

2. Rewst: MSPs can be occupied with multiple IT tasks of several companies and working with the routine tasks can seem tedious. Rewst bridges this issue by offering MSPs the best automation tools that let them streamline their daily work while putting their best experts into solving larger problems. 

Their Robotic Operations Center(ROC) ensures you create a workflow and resolve any obstacles by automating your tasks for improved performance. 

3. Deskday: Deskday is more than just a platform, it is an IT support that helps MSPs generate AI-driven solutions that exist to reshape businesses. Deskday redefines IT support channels, facilitating transformative change. 

4. Threatlocker: Threatlocker offers cybersecurity tools to businesses who wish to get their confidential information safeguarded. Being in the industry for decades, they are renowned for their innovative approach to ensuring security products are inclusive for all kinds of data including emails and content as well.  

They have developed unique cybersecurity systems that ensure organizations have complete control of their networks and do not have to fear when a malware attack can happen. In other words, their proactive product monitors and deters cyber-attacks effectively. 

5. Cork: It’s always safe to get protection, but an extra layer of assurance is what Cork brings to the table. Cork offers cyber risk insight that evaluates risk and vulnerabilities across your networks and end-points and alerts MSPs and their clients of potential cyberattacks. It’s also backed by a cyber warranty that is designed to provide financial peace of mind for MSPs and their customers. 

6. Evergreen: MSPs that are looking to sell their business safely, smoothly and financially securely would need a financial advisor who can assist with the sales process. Evergreen M&A is advertised as a company that elevates the exit strategy of companies by aiding every step of the process. 

Founders at any stage of mergers and acquisitions encounter a need for expert guidance, then Evergreen ensures to offer them the best one. 

What Lies In The Cards For MSPS In 2025?  

The future of MSPs, well the sooner one being 2025, shows a ray of sunshine that emits more opportunities that must be learned and adopted before it is too late. As more businesses transition from offline to online, it is essential for MSPs to understand their requirements. Furthermore, the implementation of high-end technological services as discussed above can come into play and so, MSPs must embrace themselves to delve into this change as ready as possible.    

But with increased demands, clientele and self-development, where do MSPs start and how can they move forward? Answering this question…is not tricky at all because offshore IT service providers that can work alongside you to improve your customer experience can make the task twice as easy. 

White-Label Opportunities MSPS Must Grab Onto 

MSPs who have been in the industry for a long time might know the term white label and how leveraging it for their benefits has shifted work pressures and sleepless nights to organised and improved customer satisfaction. White Labelling highly demanding services has proven to ease the stress of deadlines for MSPs along with simplifying their tasks to a certain extent.    

Worksent is a white-label MSP partner that emphasizes providing platform-agnostic services. An updated partner is guaranteed to pave the path for your success as well as shape the MSP environment for others to follow suit. For MSPs who are looking for revolutionary services to add to their bucket, Worksent indeed has a package to offer. So, enter the new year with this newfound confidence and create a new chapter with a partner by your side.