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The CP List: 20 Challenges, Tips for Channel Success in 2019

Twenty, 20

Challenge: Shrinking Managed Services Margins

Forrester's Jay McBain

Forrester’s Jay McBain

Managed-services margins shrunk to 17 percent in 2018; 96 percent of business aren’t scaling past 10 people and 70 percent of owners reported that they want an exit, said Jay McBain, principal analyst of global channels at Forrester and editorial advisory board member. For the first time in 20 years, the industry growth rate going forward slipped to single digits.

Tip: Expanded Marketing and Sales

Partners must expand their marketing and sales to new line-of-business buyers who make up 65 percent of tech spending, and capture the downstream revenue opportunities that digital transformation and cloud are generating, McBain said.

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