Rising Complexity, Rising Expectations: Why MSPs Need Advanced Project Management

As competition heats up, managed service providers find that effective project management is a key driver of profitable growth and customer satisfaction. But with increasing project complexity and diverse client needs, not all project management tools are up to the task. Discover how MSPs can boost profitability, streamline operations and keep customers happy.

MSPs are under pressure to improve efficiency and deliver complex projects—on time and on budget. According to The Channel Company’s State of the Industry 2024: MSP Project Management Trends & Impacts report, effective project management is essential to MSP profitability and growth, with 62 percent of respondents citing it as “very important” or “critically important” to business success.

Despite this consensus, project management remains challenging, especially as MSPs scale to handle more complex demands. The research, conducted in summer 2024 with input from more than 100 mid-sized MSPs in roles including CEOs, senior executives and directors of professional services, sheds light on current project management trends and key challenges.

Maintaining Project Visibility And Control

The report identifies the compounding issues MSPs face in project execution, which affect project timelines and profitability. As projects grow in complexity and involve diverse services and integrations, MSPs find themselves grappling with resource constraints, merger-driven software changes and complex service offerings.

These factors introduce numerous variables, making it difficult for MSPs to maintain project visibility and predict potential issues in advance. Lacking insight into these factors can impact customer satisfaction and even harm long-term business growth. Not surprisingly, project visibility, proactive issue detection and seamless professional services automation (PSA) integration have emerged as must-have features in project management tools.

MSPs Desire Integrated Project Management Solutions

Interestingly, the survey reveals a stark divide in project management tool adoption among MSPs. Only 30 percent of respondents use the project management modules embedded within their PSAs, such as those offered by ConnectWise, HaloPSA or Kaseya. Instead, many turn to alternatives, including standalone tools such as Microsoft Project, Asana and Monday.com, or even basic Excel spreadsheets.

This approach, however, often leads to fragmented management across multiple environments, complicating team coordination and oversight. As a result, MSPs are turning to integrated solutions such as Moovila Perfect Project, which offers PSA integration, autonomous monitoring and issue-detection capabilities.

For MSPs aiming to remain competitive, the research underscores the importance of robust project management solutions. Businesses depend on their MSPs not only for their technology expertise but also for their ability to manage and deliver projects efficiently and offload IT complexity. Project management solutions that integrate seamlessly with PSAs can transform MSP operations—driving faster delivery, greater accuracy and stronger customer satisfaction. In a market where clients expect both efficiency and expertise, these capabilities are no longer just helpful but essential for MSPs to scale effectively and stand out.

Read the report here: State of the Industry 2024: MSP Project Management Trends & Impacts