When it comes to managed services, you’re not alone in facing questions about pricing, performance, and the role of AI. To help you cut through the noise, we examined the top questions being asked in TSIA Intelligence, our AI-powered suite within the TSIA Portal. These are the issues your peers in managed services are focused on most right now—and the insights can help guide how you deliver, measure, and grow your services.

In this blog, you’ll find clear answers to the top questions shaping managed services today. Whether you’re exploring how AI fits into your operations, refining your pricing strategy, or deciding which KPIs to track, you’ll walk away with a practical guide you can apply to your business.

Key Takeaways

• AI is redefining managed services by automating tasks, improving customer experiences, and enabling data-driven decisions that boost efficiency and profitability.
• Pricing is shifting away from cost-plus models toward value-based, consumption-based, and outcome-based approaches that align pricing with the customer's impact.
• Tracking the right KPIs matters more than ever—from recurring revenue growth and gross margin, to customer satisfaction and proactive service delivery, KPIs help you prove value and improve performance.

What Is the Role of AI in Managed Services?

AI is becoming a core part of how managed services providers (MSPs) deliver value. By integrating AI into your operations, you can streamline processes, reduce costs, and provide a better customer experience. From automation to analytics, AI is reshaping what it means to run an efficient and customer-centric managed services business.

How AI Impacts Managed Services

• Task automation: With AI-powered automation, you don’t have to rely on manual effort for repetitive tasks like system monitoring, patch management, or ticket routing. Tools like robotic process automation (RPA) can handle these jobs behind the scenes, freeing up your team to focus on higher-value work.
• Predictive analytics: Instead of reacting to problems, AI helps you get ahead of them. By analyzing patterns in historical data and system performance, you can predict issues—like a potential system failure or a risk of breaching an SLA—before they disrupt your customers.
• Improved customer experience: Virtual assistants and chatbots allow you to support customers around the clock, resolving common IT problems instantly. AI can also learn from customer interactions to offer personalized solutions, which helps build stronger relationships and increase customer satisfaction.
• Data-driven decisions: AI gives you insights into massive datasets that would otherwise be overwhelming. For example, you can use AI to optimize technician scheduling based on skills and availability, ensuring that you deploy the right resources at the right time.
• Efficiency and cost savings: By automating manual workflows, AI reduces operational costs and helps you scale without the need to increase headcount dramatically. The result? Faster, more efficient service delivery.

Even though AI’s potential is clear, most MSPs haven’t fully embraced it yet. Adoption is still in its early stages, but interest is growing rapidly—especially in areas such as RPA, generative AI, and advanced data analytics. Early adopters are already seeing improvements in efficiency, service quality, and customer satisfaction, making AI a competitive advantage for those willing to invest in it.

Related: AI and Automation in Managed Services

How Are Offers in Managed Services Priced?

Pricing managed services has evolved far beyond just covering your costs. Today, your pricing strategy can make the difference between competing on margins and showing customers the real value you deliver.

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Common Pricing Models in Managed Services

• Cost-plus: The traditional model—add a margin on top of your delivery costs. Simple, but it doesn’t always reflect the actual value for your customers.
• Market-based: Prices are set relative to competitors, keeping you aligned with the broader market.
• Value-based: Prices are tied to the business value your services create. This model is gaining traction as customers expect more direct ROI.
• Consumption-based: Customers pay based on usage (flat, tiered, or with minimum commitments), providing them flexibility and control.
• Outcome-based: An emerging approach that links price directly to customer outcomes achieved—still early in adoption but highly customer-focused.

The industry is shifting away from cost-plus models toward ones that emphasize value, consumption, and outcomes. For you, this means that aligning your pricing with customer results isn’t just innovative—but essential for growth and profitability.

Related: The Evolution of Pricing Models for Managed Services

What Are the KPIs for Managed Services Performance?

To know if your managed services business is truly performing, you need clear metrics. Key Performance Indicators (KPIs) give you visibility into financial health, service delivery, customer satisfaction, and operational efficiency. By tracking the right KPIs, you can make smarter decisions and show measurable value to your customers.

Essential KPIs for Managed Services

Financial Performance

• Recurring revenue growth: Shows how well you’re expanding stable income streams.
• Gross margin: Reveals overall profitability after costs.
• Renewal and expansion rates: Tell you how effectively you’re retaining and growing existing accounts.

Service Delivery

• First contact resolution: The percentage of issues solved on the first try—key to customer satisfaction.
• Mean time to resolution (MTTR): How quickly you close tickets, a direct measure of efficiency.
• Proactive detection: Identifying and fixing problems before they disrupt customers.

Customer Success

• Customer satisfaction (CSAT): Direct feedback from customers on the quality of service.
• Time to adoption: How quickly customers start realizing value from new services.

Operational Efficiency

• Engineer utilization: Ensures your technical team is working on the right billable tasks.
• Billable utilization: Tracks how much of your team’s work translates into revenue.

Sales and Marketing

• Conversion rates: Shows how effectively you’re turning leads into paying customers.
• Target attainment: Measures whether your sales team is meeting its goals.

Tracking these KPIs isn’t just about numbers—it’s about creating a performance-driven culture. By benchmarking your results and regularly reviewing them, you can refine your strategies, enhance customer satisfaction, and drive sustainable growth.

Related: Top KPIs and Best Practices for Measuring Managed Services

Key Insights To Strengthen Your Managed Services Strategy

Managed services is an area of rapid change. AI is no longer optional—it’s shaping how you deliver services. Pricing is evolving, with forward-thinking providers moving away from cost-based models to align with customer outcomes. And KPIs remain essential for proving your value and guiding improvements.

By understanding what your peers are asking—and how industry leaders are responding—you’re better equipped to refine your strategies and drive growth.

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FAQs 

What’s the difference between traditional and modern managed services pricing?

Traditional pricing often relies on cost-plus models, where a margin is added on top of delivery costs. Modern approaches—like value-based, consumption-based, and outcome-based pricing—shift the focus to customer value and business impact.

Which KPIs should I prioritize first for managed services performance?

Start with financial stability and customer health metrics: total recurring revenue growth, net operating income, base revenue growth, and client retention rate. Once those are consistent, layer in service delivery KPIs, such as first-contact resolution and proactive detection rates.

How can TSIA Intelligence help my managed services strategy?

TSIA Intelligence answers the questions you and your peers are asking across the industry, giving you benchmarks, insights, and practical direction. Instead of sifting through scattered resources, you get direct, data-driven guidance for your managed services business.