MSPs
AGENTIC AI AND SMART GROWTH
Smaller MSPs are under pressure to do more with less, but the path to greater efficiency doesn’t have to mean major investment or upheaval. Phylip Morgan explores the practical steps, smart tooling choices and operational shifts that can help leaner providers sharpen their margins and strengthen their service delivery over the year ahead.
2 Phylip Morgan 44 | May/June 2026
026 is shaping up to be a pivotal year for UK Managed Service Providers (MSPs) as customer expectations rise, margins remain
tight, and operational complexity increases. A September 2025 study by Omdia shows that despite MSPs entering 2025 expecting double-digit growth, the reality was very different as the year progressed. Expectations of revenue growth of more than 10% fell by 14 points between February and September. Tis lack of confidence may have been compounded by uncertainty in the lead-up to the Autumn Budget. While the Spring Statement did not introduce
significant new business measures, it reiterated the government’s broader focus on economic growth, productivity and technology investment. Tis continued policy direction may provide
some reassurance to Managed Service Providers as organisations look to innovate and modernise their digital operations. Due to the current market volatility, which is likely to place upward pressure on energy costs and inflation in the UK. Tis could influence the Bank of England’s outlook on lending rates, adding further uncertainty for organisations planning investment in digital transformation. All MSPs have had to recalibrate their
expectations and investments, but it’s smaller providers in particular that have limited resources to navigate the challenges. Te question now is not whether to evolve but how to make it happen. Te answer lies in smart, agentic AI-powered efficiency – the equaliser for smaller MSPs. Tis transition is part of a wider industry move
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