Robotic Process Automation (RPA) has gained a lot of traction due to its advantages, i.e., higher employee productivity, reduced risk, quality data and savings in terms of operational efficiency, better customer service, and more. But does this mean that the managed service providers (MSPs) are also making lots of money?
Well, it is not so simple to answer. Amid the rapid growth in the RPA market, there is a lot of competition between MSPs. Then the customers are also looking for cost-effective solutions. Considering the cost of resources and other overheads, the business profitability takes a hit if the providers try to offer affordable solutions.
So, can we say that if an MSP is unable to maximize margins from its new RPA business, then it is failing in financial terms? Are there any strategies it could use to maximize its profitability? This is what this article attempts to solve – how MSPs can quickly monetize a new RPA practice.
Strategy #1: Maximizing margins by driving out costs
Driving income is important for MSPs, but they should focus on minimizing their costs related to licensing, business overheads, staff wages and training, and software, etc. They have been advising firms on how to realize cash savings from their automation initiatives, and they should also manage their expenditures in every way possible.
Here are a few strategies for MSPs to successfully keep their revenue stream(s) in the green light:
Choosing a cost-effective RPA platform
When companies’ executives learn about the pricing structure of a managed service package for their RPA initiatives, they may get some shock. The reason is that there are costs related to equipment, IT staff, data recovery, and other overheads that a service provider will add into the pricing package.
One of the main costs for MSPs is the expensive platform license. Typically, using xRPA software requires a license, and charges are to be paid on an annual or monthly basis. Furthermore, they often need to pay extra per bot, especially for unattended bots (as they are usually more expensive than the attended ones).
Here, we would like to introduce ElectroNeek as a full-featured and affordable RPA platform available today for partners. As the main components are offered at no extra cost, service providers can use ElectroNeek’s platform to build a scaled automation environment (as they don’t need to pay for the expensive platform licenses). Furthermore, if they are building the RPA capabilities with ElectroNeek, there is no restriction on the number of attended and unattended bots. It means that MSPs can deploy and run an unlimited number of bots in their client infrastructure free of charge and make a profit on bots’ development and maintenance.
Let’s take a look at how much a partner can save by choosing ElectroNeek’s platform:
Incorporate scalable RPA tools
Scalability is a key factor to consider when MSPs are choosing an RPA platform. If they want to carve out a niche and stand out from the competition, they need to find out a strategy to do it smartly. A scalable RPA solution can be the answer – to help obtain new or keep recurring revenue streams. Whether you are expanding your business or planning to offer more custom services/product bundles, your RPA solution should have the capability to handle all the extra work.
Here, you can consider integrating an ElectroNeek solution to standardize your workflows and assign tasks to correct resources to manage your MSP business. It also lets you scale the number of bots (up or down) as required. Moreover, you can build hundreds of bots without the need for additional licenses for as many clients as you want.
Last but not least, ElectroNeek’s low-code/ no-code development environment lets you recreate processes to develop new solutions quickly and cost-effectively.
With these benefits, MSPs will be able to scale quickly without the need to add more resources by leveraging the power of RPA to automate their internal repetitive tasks and cut costs smartly (which positively impacts your profits).
Strategy# 2: Upselling your additional services
A logical method to find a new revenue stream seems easier said than done. Many MSPs assume that if their clients use cloud services (Office 365, Google Apps, etc.), they are satisfied as such services include backup and security solutions. However, there are certain cases when the customers will need the help of service providers:
1. Consider what end-of-life services, apps, products your clients are using that they will need to abandon soon, and then offer your recommendations.
2. Your customers are not interested in learning how to add a new user or which dashboard to use for changing a password. Offer them an easy way by making things happen for them.
3. Offer an additional layer of backup against the protection offered by the services (such as Google Apps) to restore data and other errors. These solutions can provide backup in a limited way. For instance, an Office 365 solution can help restore an important email within 14-days time. But what if a client wants to restore an email deleted weeks ago? It can be a recurring revenue stream for RPA providers.
4. Whether remotely or in the office, your clients will be working from their desktops and laptops. They would require software installations (such as antivirus), and monitoring, etc.
To summarize this point, there is an additional revenue stream for MSPs by offering ongoing support, data migration, remote monitoring, and other additional services. Here again, leveraging an affordable RPA platform such as ElectroNeek will let you manage these activities smoothly by making use of automation. You can use ElectroNeek’s product Studio Pro IDE to build bots to perform these tasks.
Another ElectroNeek product is “SaaS Orchestrator” which enables you to monitor and manage these activities for multiple clients from a single dashboard.
And if your client wants to use your services in multiple locations, you can use ElectroNeek’s easy-to-use Bot Runner to deploy bots (created in Studio Pro) easily on multiple locations.
Similarly, you can use the ElectroNeek platform to monitor your clients’ workstations remotely and automate IT-related tasks such as patch management, antivirus installations, user onboarding/offboarding, data migration, etc. It means that you will be saving money on hiring additional resources, as only a few technicians can do this job with the RPA platform.
The traditional way of selling services may not work for partners, as time and labor may impact the profit margins. Service providers can make money by building and deploying bots to perform tasks such as IT services and offer ongoing support.
The strategies offered in this article will help them address the issue of maintaining or increasing their business profitability by employing the ElectroNeek RPA platform to automate their clients’ business processes and expand the scope of their offerings. It offers the affordability and flexibility to build on-demand bots depending on the client’s requirements on a large scale and fast speed.
ElectroNeek can help these service providers stand out from the crowd by automating many business processes. There are many other ways service providers can improve their profitability, and we are simply trying to touch the surface here.