Mistakes MSPs Make With IT PSA Software (and How To Avoid Them!)

Professional Services Automation (PSA) software is changing how MSPs manage core business functions worldwide. The global market for PSA solutions has reached over $10 billion and will register a compound annual growth rate of nearly 12% until 2030. Like any other industry, Managed Service Providers (MSPs) are leveraging the benefits of automation to streamline their processes, improve customer service, and increase efficiency.

 But beware: pitfalls await the unprepared.

Let's explore the costliest mistakes in IT PSA software implementation that MSPs have made so you can avoid them!



PSA Software for MSPs

PSA software is not limited to IT companies; it's used for various business sectors like healthcare, financial services, retail, and more. However, it's a crucial tool for MSPs, enabling them to optimize their IT service delivery and management. 

The right PSA software helps MSPs Succeed:

• PSA software helps automate routine tasks, reduces manual errors, and improves your MSP's process efficiency

• PSA software helps deliver real-time visibility into your MSP's projects and resources, enabling better strategic decision-making

• PSA software helps improve your MSP's customer service by enabling faster response times and better resource utilization

• PSA software helps manage your MSP's billing and invoicing  more efficiently, improving your revenue cycle

• PSA software facilitates effective communication and collaboration between your MSP's teams

So by implementing a PSA software, you'll be supercharging your MSP's productivity by slashing manual task hours while turbocharging your customers' satisfaction and boosting your revenue.


Common Mistakes MSPs Make With IT PSA Software (And How To Avoid Them!)

Despite the clear benefits of PSA software, many companies are using it incorrectly or leaving untapped potential. Here are the most common mistakes that MSPs make with IT PSA software:

Lack of a detailed and systematic implementation plan can lead to challenges like:

• Loss of critical data
• Confusion amongst employees
• Disruption of ongoing projects

Take, for example, an MSP switching to a new PSA solution without thoroughly migrating old data. This could result in lost ticket histories, client details, and essential cost-related data, leading to ineffective decision-making and lowered customer satisfaction.

Using default settings without aligning them to your organization's needs can considerably lower the tool's effectiveness. For instance, if you fail to customize ticket priority settings according to your SLAs, your team might not respond to critical tickets within the stipulated time, leading to SLA breaches and displeased customers.

Without thorough training, your team may use just a fraction of the software's capabilities, not leveraging the tool's full potential. A team member might not realize they can automate time entry tracking from service tickets, causing them to manually enter time, resulting in inaccuracies and wasted time.

Mistakes MSPs Make with IT PSA Software_14. UNDERUSED INTEGRATION
MSPs often use a variety of tools, from CRM systems to billing and invoicing solutions. Failing to integrate your PSA software with these tools can lead to inefficiencies — like manually transferring customer details from your CRM into the PSA, wasting valuable time that could be used on revenue-generating tasks.

Ignoring or delaying software updates can lead to performance issues or even severe security vulnerabilities. 

For example, if you don’t promptly implement an update that patches a known security loophole, you leave your system open to potential cyberattacks. Similarly, updates often come with new features or improvements that you could be missing out on, limiting the effectiveness of the software.

An essential step in implementing PSA software is to standardize processes. Managing and executing projects can become chaotic and inefficient without transparent, standardized methods.

If an MSP fails to define process flows—like service request management or project timelines—it can cause confusion, missed deadlines, and discrepancies in service delivery.

Implementing a new tool isn’t merely about technical setup and integration. It involves getting your team comfortable with the new system and ensuring they understand:

• How it operates
• How it can enhance performance
• How it affects their daily responsibilities

If not emphasized enough, user adoption rates can be low, and resistance to change might rise. For instance, if an MSP introduces a new PSA without explaining its benefits and training employees adequately, team members might resist using it, preferring to stick to old and familiar processes. This significantly impedes realizing the software's full value.


Strategies to Get the Best Out of PSA Software

Implementing PSA software can be challenging, but when done correctly, it can significantly enhance your business operations.

To leverage the full potential of PSA software, MSPs need effective planning. This includes understanding their unique business requirements and involving all stakeholders in decision-making. A detailed implementation plan should be prepared, including data migration and training schedules. Standardizing business processes before software implementation and choosing a software solution that fulfills their requirements and integrates seamlessly with existing tools is also crucial.

Mistakes MSPs Make with IT PSA Software_2TRAINING
Training is an essential aspect of successfully implementing and operating PSA software. Start by conducting an in-depth introduction of the new software to the team, focusing on the realized benefits to stir interest and stimulate their curiosity. Follow this up with detailed training on how to use the different features and how they tie into the team's daily tasks to improve efficiency and productivity. Don't forget to allocate time for hands-on practice sessions, which allow team members to navigate the system and better understand its capabilities. Include regular refresher courses and new feature updates training to keep everyone on par with the software's evolution over time.

Ensuring regular maintenance of your PSA software is crucial to its performance and your ability to benefit from its full potential. Regular updates provide you with new features and improvements and enhance the system's security, keeping potential cyber threats at bay. In addition to system updates, evaluate the system settings periodically to ensure they align with your business needs and make necessary adjustments. 

Additionally, conduct frequent assessments of the tool's performance and benefits to ensure it continues to meet your business needs. These assessments will help identify any areas of inefficiency or unutilized features to guide future training, integrations, or system customizations. Remember, PSA software should grow and adapt to your business needs.


Final Thoughts

PSA software is a powerful tool for MSPs, promising efficiency, visibility, and better service delivery. However, its full potential can only be harnessed with careful planning, thorough training, and regular maintenance. With these considerations in mind, MSPs can take strides towards optimizing operations and improving customer satisfaction. It's about using the software not just as a tool, but as a strategic driver for growth and increased competitiveness in the MSP market. That's why SherpaDesk is a strong believer in onboarding training, with free weekly onboarding demos and also a la carte training sessions to get your team up to speed ASAP.

Contact SherpaDesk to setup your onboarding training.

SherpaDesk is the definitive helpdesk solution for all your support, project management, and billing issues. 

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Nick Saraev
By Nick Saraev

A programmer by trade, Nick is a freelance writer and entrepreneur with a penchant for helping people achieve their business goals. He's been featured on Popular Mechanics & Apple News, and has founded several successful companies in e-commerce, marketing, and artificial intelligence. When he's not working on his latest project, you can find him hiking or painting.