‘I think a lot of MSPs have been told that their PSA’s project management tool is all they need, but the reality is these tools often don’t cut it. Many MSPs, especially the larger ones, need something much more tailored and capable of handling the complexity of their workflows,’ said Mike Psenka, CEO of Moovila, speaking to CRN about the results of a recent survey of MSPs the company commissioned.

MSPs are facing significant challenges in project management that are not only impacting day-to-day operations but also bottom-line profits.

That’s according to a survey Moovila conducted in partnership with CRN parent The Channel Company that asked over 100 midsize MSPs about the value of project management offerings.

The findings suggested that outdated systems, inadequate tools and poor project management practices are undermining the effectiveness and profitability of MSPs.

In fact, nearly 50 percent of MSPs surveyed reported that how they currently manage projects affects profitability.

“It was a bit of a surprise,” Mike Psenka, CEO of Mount Pleasant, S. C.-based Moovila, told CRN. “We knew project management was a pain point but seeing that half of MSPs are saying it’s directly harming their profits, that was eye-opening.”

[Related: 14 Hot Products For MSPs In 2024]

He noted that while MSPs are often early adopters of new technologies, there’s a hidden flaw in many of the current tools being used, specifically professional services automation (PSA) platforms. He suggested that those platforms, which integrate project management tools with broader service delivery workflows, are failing to meet the complex needs of MSPs.

In fact, 70 percent of MSPs do not fully utilize the project management features, often because they lack the necessary sophistication or flexibility, according to the survey.

“I think a lot of MSPs have been told that their PSA’s project management tool is all they need, but the reality is these tools often don’t cut it,” he said. “Many MSPs, especially the larger ones, need something much more tailored and capable of handling the complexity of their workflows.”

Brent Yax, owner of Troy, Mich.-based MSP Awecomm, said that his PSA-based project management tools have been “a continuous source of frustration.”

“From resource planning to critical path management, we have lost countless hours with stalling projects and overallocation of technical resources,” he told CRN. “By connecting Moovila to our PSA, we have been able to enhance how we manage projects while still having all the necessary information connected into our ticketing and automation tools. It has given us much more control over project timelines and deliverables and has allowed us to accelerate timelines and increase customer satisfaction.”

The study highlighted a growing gap in the market as MSPs look for solutions that can handle not only traditional project timelines and resources but shifting personnel and customer deadlines. Psenka said that MSPs rely on project management to maintain customer satisfaction, and when systems fail the consequences can be severe. “It’s not just about missing a deadline. It’s about damaging client trust,” he said.

Automation and AI are often used as the solution to these issues, but Psenka warned that automation in project management is a “nuanced challenge.”

“Our AI isn’t just some general-purpose tool like ChatGPT,” he said. “It’s a very specific expert system focused on project timelines, resource scheduling and task dependencies. In an industry where timelines and resource management are so critical, you cannot afford to be working with flawed or incomplete data. That’s what makes automation so vital, but it has to be done right. If you don’t have the right foundation, it’s just as bad as doing nothing.”

And with the rapid rise of automation technologies, MSPs are beginning to understand that without investing in more sophisticated project management offerings, they risk falling behind in an increasingly competitive market.

“Midsize MSPs, in particular, struggle to allocate the resources necessary to properly analyze their project management practices,” he said. “They don’t have the luxury of a dedicated team to do retrospectives or to analyze the effectiveness of their processes. That’s where automation comes in. Tools can scan data and quickly identify areas where resources, timelines and costs don’t align.”

For MSPs of all sizes, the message from Psenka is clear: Invest in tools that can scale with the business, improve accuracy and ensure that customers’ needs are met on time, every time. Automation is not just a luxury, it’s a necessity, he said.

“We’ve seen firsthand the difference that good project management tools can make,” he said. “It’s not just about doing things faster, it’s about doing things smarter. If MSPs want to stay competitive, they need to embrace automation and AI, but they also need to do it thoughtfully.”