Singapore MSPs see strong growth but workers are stressed out

Managed service providers (MSPs) in Singapore expect 18% revenue growth in 2023 despite pressures of global economy and competition, according to Barracuda Networks.

However, a new report from Barracuda finds that stress levels for the average MSP employee are considerable, with 13% reporting a high level of employee stress.

The report is based on research commissioned by Barracuda from independent research organisation Vanson Bourne, covering 500 decision makers and knowledge workers from MSP organisations across North America; Europe, Middle East and Africa; and Austrtalia-New Zealand regions, with between five and 350 employees.

Barracuda found that 37% of MSPs say they see significant business opportunity in cloud-based applications, and cloud-based infrastructure (39%), in network security (34%) and in Security Operations Centres (29%) in 2023.

“MSPs are a vital component of the cybersecurity landscape, helping organisations of all sizes to protect their increasingly connected employees, assets, data and IT infrastructure from a growing range and intensity of cyberthreats,” said Luke Smith, regional account director for the Asia-Pacific at Barracuda MSP.

Findings show that although the uncertainty of the economy continues into 2023, the MSPs surveyed have “ambitious/cautious” plans for growth. 

They anticipate an average revenue increase of 18% (from $16.01 million in 2022 to $18.86 million in 2023) compared to a global average of 25% (from $12 million in 2022, to over $16 million).

Also, growth will be powered by adding new services and supporting new industry sectors.

Singapore MSPs expect to introduce on average four new services for customers in 2023 compared to three in 2022. Half of them are also looking to expand their client base into new industry sectors.

Further, growth comes at a price and MSPs face challenges in their own businesses.

More than half (55%) of MSPs are concerned about the heightened competition in the MSP market compared to 2022, and about attracting talent (42%).

Many believe that significant improvements are needed in their ability to keep up with the latest technology and security trends (39%), and employee well-being (26%).