MSPs For example, according to a September 2023 release from the


Regulatory Policy Committee (RPC), regulatory costs rose by £7.8 billion during the 2017-2019 parliament, increasing again by an additional £14.3 billion in the first three years of the 2019- 2024 parliament. Firms certainly feel the squeeze. In PwC’s Global Compliance


Survey 2025, 85% of surveyed businesses agreed that compliance requirements have become more complex in the past three years. In addition, 82% said that this rising complexity has negatively affected senior leadership focus, while 81% feel it has impacted their transformation and change activities.


Creating an opportunity for the channel With a range of sector-centric legislation and data protection laws coming into force in recent times, it’s no wonder that the compliance landscape has become increasingly difficult to navigate. IO’s own State of Information Security Report 2024 revealed how keeping up with regulations and industry standards is placing growing demands on businesses, making it the second biggest information security challenge faced by UK, US and Australian companies. Not only that, two-thirds of organisations also stated that the rapid pace of regulatory change is making it even harder to comply. Unfortunately, there’s little to suggest that the compliance


burden will lessen anytime soon. On the contrary: Over the past few years, we’ve seen frameworks such as NIS2, DORA and AI-related legislations including the EU AI Act introduced in response to growing concerns surrounding data privacy, cybersecurity and most recently, artificial intelligence (AI). And unsurprisingly, Gartner estimates that by 2026, half of all governments around the world will take steps to enforce the use of responsible AI through regulations and policies. With this, many organisations – and particularly small


and mid-sized businesses – face an almost unsurmountable dilemma. While they must make sure to meet the ever-changing compliance requirements, oſten they do not have the required level of expertise, enough time or resources to respond quickly and effectively to a flood of ever-changing regulations. Te 2023 Tomson Reuters Risk & Compliance Survey


highlighted this issue, revealing how a lack of knowledgeable employees, along with company culture and inadequate resources are all hindering confidence in companies’ abilities to efficiently address compliance risks. At the same time, MetricStream’s State of Compliance Survey found that over three quarters of compliance managers are having to resort to manually scanning regulatory websites to try and keep abreast of the latest changes. It is obvious that many businesses are finding themselves


ill equipped to effectively manage their compliance in-house. A growing number are now seeking help and support from third-party experts and external partners. In fact, Gartner has estimated that legal and compliance departments will increase their investment in governance, risk and compliance solutions by 50% between 2023 and 2026. As a result, the Compliance-as-a- Service (CaaS) industry is forecast to expand substantially in the coming years. And MSPs are perfectly placed to make the most of this growing opportunity.


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In their role as trusted third parties that are already managing significant aspects of their clients’ IT infrastructure and end- user systems, adding CaaS into their existing offering is a natural and logical step for MSPs to take. Doing so will not only provide them with the opportunity to diversify the range of services they deliver. MSPs who integrate CaaS into their offering will also be able to add significant value for their clients, strengthen client relationships, attract new business and gain distinct competitive advantages.


How MSPs can make their CaaS offering work While the opportunity for MSPs is considerable, diversifying and marketing the services they offer is likely to require a certain change in strategy and approach. Today, most MSPs focus on the delivery and management of largely automated tools to run their clients’ IT environments. However, when it comes to providing the CaaS solutions that their customers need, automated platforms on their own will not be enough. While custom-built technology solutions have a crucial role


to play, successful compliance management strategies must be underpinned by processes and people. Additionally, in order to successfully market and sell CaaS solutions, MSPs must educate their clients on the fact that compliance is an ongoing effort, rather than a case of “set and forget”. Achieving the desired results will always require a combination of reliable technology, continuous management as well as specialist support. As part of this, it’s also important that the platforms on which


the CaaS solutions are built not only cover all the compliance steps from risk assessments to regulatory audits, but are capable of integrating seamlessly with existing tools and systems. Customers looking to buy CaaS solutions typically do so


because their existing compliance practices are proving too difficult to manage, being too time-consuming, complex and costly. If a CaaS solution demands any major infrastructural or operational changes before it can be implemented, it will simply turn one headache into another. It is therefore essential that an MSP’s CaaS solution can work seamlessly with clients’ current IT environments. Finally, as well as being comprehensive, efficient, effective


and easy to use, the solution should also help provide a high degree of transparency to potential and existing clients, as they will likely want regular updates on their compliance status alongside regulatory changes. MSPs should therefore select compliance platforms that can automate workflows while allowing for human oversight. Key features to look for include clear dashboards and reporting options, allowing MSPs as well as their clients to understand and track the compliance status in real-time. MSPs who can achieve all of this will be well placed to not


only simplify compliance for their customers but also deliver real cost and efficiency benefits. In a fast-moving market, it is high time for MSPs to seize


the compliance opportunity. Tose who can respond to their clients’ needs by successfully combining CaaS with their existing offerings will have a crucial competitive advantage and ultimately, establish a foundation for continued growth.


September/October 2025 | 53


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