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The need for federal agencies to modernize their operations while remaining focused on their missions has prompted increasing attention on the merits of using MSPs, suggests a new survey of federal IT and program management officials by FedScoop and General Dynamics. According to the report’s authors, managed services have histori- cally been viewed by federal agencies through the lens of how well they reduce total IT costs — while still allowing agencies to control their IT outcomes. But the reasons to work with managed service providers have grown more varied and nuanced in recent years. Agencies are confronting seismic shifts in technology solutions, a need for more modern IT and security skills and mounting pressures to serve the public more effectively and securely. MSPs, meanwhile, have adapted to meet the evolving IT needs at federal agencies, said FedScoop analysts. They offer agencies greater flexibility to modern - ize their IT systems and incorporate the latest innovations — and access to a wider pool of IT talent. In turn, two in three federal IT, business and program executives now say their agency is currently using, planning to use or consider- ing an MSP to support their IT work. And respondents identified a variety of core areas where MSPs provide value. Most (65 percent) pointed to staffing, but 54 percent cited security, 44 percent mentioned compliance and 41 percent said training and change management are among other areas where MSPs can help. Reduc- ing long-term IT costs, being able to focus more on the mission, gaining speed and scalability and reducing risks were among the primary motiva- tors for moving to an MSP. In the next five years, respondents indicated that they will seek more help from MSPs for cloud infrastructure, backup and recovery, cybersecurity, data analytics, networks/infrastructure, software development and telecom- munications support. Respondents stated technical expertise/experience, knowledge of an agency’s specific needs and predictability of costs as the highest success factors in working with MSPs. Agency respondents expressed the highest interest in MSPs that can provide a selective or flexible service, or other hybrid support models. Feds Embracing MSP Model Biggest Motivators to Move to MSP Cost efficiency— reducing long-term IT costs 59% Mission focus — devote more attention on mission and less on IT operations 39% Speed/scalability — gain greater ability for operational agility and automation 34% Risk reduction — shift IT ownership/responsibility to outsource providers 33% Workforce support — address IT personnel hiring/skills challenges 30% Cost/pricing predictability — assure more consistent IT pricing/costs 30% Ease of use — end user ability to acquire and use services 25% Market knowledge/innovation — offer greater access to relevant technology partners (AI/ML. etc.) 17% Source: FedScoop; General Dynamics Source: Altaro; HornetSecurity Group; MSP survey Federal Agencies Using or Considering Using an MSP Source: FedScoop; General Dynamics e 30% 10% 7% 17% 36% Yes, currently using an MSP Planning to use an MSP in 2 years Planning to use an MSP in 5 years Considering, but undecided Not planning to use an MSP BUYERS SIDE 48 CHANNEL V ISION | July - August 2021