Renewals

Three-quarters of IT service providers surveyed reported that 80 percent or more of their contracts were being renewed, proving that the value of their services is in higher demand worldwide. 

The three biggest reasons for the renewals? Demand for managed services (by 53 percent of respondents), better customer service (57 percent), and demand for cloud services (36 percent).

According to Jim Bittle, the president of Frederick Md.-based MSP CommPutercations, the high number of renewals is pointing to the maturation of clients in the MSP market.

"Once the clients realize that the MSP model really does save them money and they now have a trusted partner and adviser, they want to keep that relationship," he said.

Partner Takeaway: With managed services, improved customer service and cloud services are driving more contract renewals, solution providers can add these services to make more predictable, steady money as part of a recurring-revenue strategy.