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How to Maximize MSP profits with PDaaS: A complete guide

Vlad Vakser Vlad Vakser | March 16, 2023 | 4 min

As a Managed Service Provider (MSP), your primary goal is to deliver top-notch IT services to your clients. But have you ever considered offering product development services to your customers? Outsourced product development, also known as Product Development as a Service (PDaaS), can be an excellent way for MSPs to maximize profits and grow their business.

In this article, we’ll explore how MSPs can leverage PDaaS to increase their revenue and provide better value to their clients.

What is PDaaS?

Product Development as a Service (PDaaS) is a model where a third-party service provider takes care of the entire product development process for a client. PDaaS providers specialize in software development and offer various services such as product ideation, design, development, testing, and maintenance.

PDaaS allows MSPs to offer end-to-end product development services to their clients without investing in additional resources or hiring a new team. MSPs can partner with PDaaS providers and white-label their services to offer product development as part of their existing offerings.

How can MSPs benefit from PDaaS?

Expand your service offerings

By partnering with a PDaaS provider, MSPs can offer a broader range of services to their clients. MSPs can now offer product ideation, design, development, and maintenance services, allowing them to become a one-stop shop for all their client’s IT needs. This can help MSPs win more business and retain existing clients.

Lower costs and increase profits

PDaaS providers have specialized expertise in software development and can deliver products faster and more efficiently than MSPs who do not have a dedicated product development team. By outsourcing product development, MSPs can reduce their operational costs and increase their profits.

Improved project management

PDaaS providers have a streamlined product development process, and they have the expertise to manage projects efficiently. MSPs can leverage this expertise and offer better project management services to their clients. This can result in higher customer satisfaction and more repeat business.

Scalability

PDaaS providers can scale their services based on the client’s needs, making it easier for MSPs to handle clients with varying project sizes. MSPs can white-label these services and offer them to their clients without investing additional resources.

How to get started with PDaaS?

Find the right PDaaS provider

When choosing a PDaaS provider, look for a partner with a proven track record in software development. Look for a provider offering a wide range of services, including product ideation, design, development, testing, and maintenance. Ensure they have a transparent pricing model and can deliver projects within your client’s timeline and budget.

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Identify potential clients

Identify potential clients who can benefit from product development services. Look for clients who have a need for custom software development or who are looking to develop a new product.

Offer white-label services

Offer white-label product development services to your clients. This allows you to offer product development as part of your existing service offerings without investing in additional resources.

How Langate works with MSP companies

At Langate, we understand the challenges faced by MSPs. Our partner program is designed to help MSPs increase their MRR and Net Revenue Retention within the first six months of partnership. We provide marketing experts, materials, and Co-Op funds to help MSPs market their app development services to their customers. Our flexible partnership terms require no minimum commitment and offer multiple options, from referrals to solution co-development. Langate is also building a community of trusted advisors to help MSPs prepare for the next big thing. As a Microsoft Gold Partner with Application Development and DevOps competencies, Langate offers expertise in the latest technology. We are also HIPAA- and GDPR-compliant, ensuring the highest level of security for our MSP partners and their clients.

Conclusion

Product Development as a Service (PDaaS) is an excellent way for MSPs to offer end-to-end product development services to their clients without investing in additional resources or hiring a new team. MSPs can partner with PDaaS providers and white-label their services to offer product development as part of their existing offerings. PDaaS can help MSPs expand their service offerings, lower costs, improve project management, and scale their business. 

MSPs looking to maximize profits and grow their business should consider offering product development services through PDaaS. By partnering with a trusted PDaaS provider like Langate Software, MSPs can expand their service offerings, improve project management, and scale their business. With the right strategy, MSPs can increase their revenue and provide better value to their clients.

Frequently Asked Questions

What is PDaaS, and how can it help MSPs maximize profits?

PDaaS stands for Product Development as a Service. It is a model where a third-party service provider offers end-to-end product development services to businesses on an outsourced basis. MSPs can partner with PDaaS providers and white-label their services to offer product development as part of their existing offerings. PDaaS can help MSPs expand their service offerings, lower costs, improve project management, and scale their business, ultimately resulting in higher profits.

How can MSPs choose the right PDaaS provider for their business?

MSPs should look for a PDaaS provider that has experience in their industry and can provide references from satisfied clients. They should also look for a provider that offers flexible partnership terms with no minimum commitment and multiple options, from referrals to solution co-development. Additionally, MSPs should ensure that the PDaaS provider is reliable, has a proven track record of delivering high-quality work, and can provide the necessary expertise to help them meet their business goals.

What kind of projects can MSPs offer to their clients using PDaaS?

MSPs can offer a wide range of product development services to their clients using PDaaS, including mobile app development, web app development, software development, cloud-based solutions, and more. By partnering with a trusted PDaaS provider, MSPs can offer their clients top-notch product development services without investing in additional resources or hiring a new team. This can result in higher customer satisfaction and more repeat business for the MSP.

Can MSPs offer PDaaS services to businesses outside of their industry?

Yes, MSPs can offer PDaaS services to businesses outside of their industry. PDaaS providers often have experience working with businesses across multiple industries and can provide the necessary expertise to deliver high-quality product development services to clients in various industries. However, MSPs should ensure that they have a solid understanding of the target industry’s unique needs and challenges before offering PDaaS services to clients in that industry.

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