Why $10M MSPs Are Winning with Co-Partnering and How Smaller Firms Can Follow

The MSP space is evolving faster than ever, and a key trend stands out in the race for growth: co-partnering. Larger MSPs (those earning $10M+ annually) are leaning heavily into this strategic model, leveraging it to drive deeper client relationships, secure long-term contracts, and capture higher revenue. Meanwhile, smaller firms are left wondering whether this high-level approach is out of their reach. Spoiler alert: it’s not.

This blog explores why co-partnering is becoming the gold standard for mature MSPs and how smaller organizations can adopt it to scale their operations. Whether you’re running a growth-stage MSP or leading an enterprise, understanding co-partnering might just be the most important strategy for staying competitive in the modern MSP landscape.

What Is Co-Partnering and How Does It Differ from Co-Managed Services?

Before we talk about why co-partnering is so impactful, let’s first clarify its distinction from co-managed IT services. MSPs already familiar with the co-managed model may see this as an evolution, but the approaches serve different purposes.

Co-Managed IT Services

Co-managed services focus primarily on tactical support. Typically, MSPs work alongside internal IT teams to handle specific functions like patch management, monitoring, or cybersecurity tasks. The engagement is technical and operational, helping businesses handle overflow work or address skill gaps without adding full-time employees.

Co-Partnering

Co-partnering, on the other hand, is far more consultative and strategic. It involves MSPs sitting at the decision-making table, contributing to a client’s business strategy alongside their leadership teams, and providing guidance through roles like virtual Chief Information Officers (vCIOs). It’s about long-term collaboration, emphasizing ROI and business outcomes rather than operational task lists.

For example, a co-managed IT service might focus on improving a company’s network reliability, while a co-partnered MSP would help position that IT infrastructure as a key enabler of their five-year growth strategy.

Co-partnering creates a deeper client-provider alignment, allowing the MSP to drive meaningful transformation while establishing themselves as an indispensable part of the business.

Why Are $10M+ MSPs Investing in Co-Partnering?

The numbers don’t lie. According to the 2025 MSP Horizons Report, of the MSPs generating annual managed services revenue in excess of $10 million that responded to the survey, 75% said they rely predominantly on co-partnering as their go to market model, making it clear that this model is at the heart of their success. Why? Here are three key reasons:

1. Deeper Client Engagement

Larger MSPs are embedding themselves into their clients’ businesses, acting as trusted advisors rather than reactive service providers. By participating in board-level decisions, these MSPs improve their understanding of client needs and tailor their services to deliver maximum impact.

2. Increased Revenue Potential

Co-partnerships often lead to larger contracts and stickier relationships. Instead of a tactical, short-term project, the MSP becomes part of ongoing strategic initiatives, securing a steady revenue stream.

3. Differentiation in a Crowded Market

By offering value beyond IT support, mature MSPs separate themselves from competitors. Consulting, strategy planning, and subject-matter expertise help position them as indispensable partners in their clients’ growth.

As a case in point, many larger MSPs are hiring vCIOs and subject matter experts (SMEs) in-house to deepen their capabilities. These roles allow them to align more closely with client goals, adding substantial value to their offerings.

What Smaller MSPs Can Learn and Implement Today

Smaller MSPs might feel intimidated by the apparent complexity of co-partnering. But rest assured, they don’t need $10 million in annual revenue or a squad of in-house vCIOs to get started. Every MSP can adopt elements of this model and progressively build toward full-fledged co-partnering.

1. Begin with Co-Managed Services

Treat co-managed IT services as your gateway to co-partnering. By taking on specific functions for internal IT teams, you establish trust and showcase your capabilities. Over time, this can open the door to deeper, strategic conversations.

2. Provide Compliance as a Service

Navigating the ever-evolving landscape of regulatory requirements is a constant challenge for SMBs. Smaller MSPs can step in by offering Compliance as a Service. This doesn’t require building a legal department—it means packaging and delivering tools, monitoring, reporting, and advisory services that help clients stay ahead of standards like HIPAA, GDPR, or CMMC. Start by partnering with compliance-focused vendors or consultants, and gradually integrate these offerings into your stack. You’ll not only add value but also position yourself as a strategic ally in reducing business risk.

3. Leverage White Labeling

A common hesitation among smaller MSPs is that they lack the expertise to deliver high-level services. The solution? White label MSP services.

White labeling allows smaller MSPs to partner with vendors that specialize in advanced functions like cybersecurity or vCIO services. These services are branded under your name but delivered by experienced third parties. This means you can meet client needs without the upfront costs of hiring specialists.

Pro Tip: Vet your partners carefully. Use peer recommendations, forums, or vendor networks to find reputable white-label service providers.

4. Shift Your Mindset

Transitioning from tech support to strategic partner requires a transformation in mindset. Stop thinking of your role as merely « keeping the lights on » for clients. Instead, start discussing how their IT infrastructure can align with their business goals, reduce costs, and enable growth. Incorporating this perspective will naturally evolve your client relationships toward the consultative approach seen in co-partnering.

The Bigger Picture of Co-Partnering

It’s not just $10 million+ MSPs or North American markets leaning into co-partnering. This model is gaining global adoption, with significant traction in EMEA markets and private equity firms increasingly valuing it for its long-term ROI promise.

Private equity investors see co-partnering contracts as long-term client retention tools, making MSPs with these capabilities highly attractive acquisition targets. This trend isn’t just hype; it’s a proven strategy that’s shaping the future of the industry.

How Co-Partnering Drives MSP Growth and Value Creation

To sum it up, co-partnering is much more than a service model; it’s a growth model that aligns perfectly with the evolving expectations of enterprise clients. For MSPs of all sizes, adopting aspects of co-partnering can lead to:

• Deeper, long-lasting client relationships

• Significant revenue growth

• Enhanced market differentiation

• Increased enterprise valuation

Whether you’re a growth-oriented MSP or a large-scale provider, co-partnering is an opportunity you can’t afford to ignore.

Want to explore co-partnering strategies in greater depth? Check out my recent Beyond the Horizon podcast episode, Evolving MSP Go-to-Market Strategies, on YouTube or listen on your favorite streaming platform. Learn how leading MSPs are redefining their roles in today’s market.

Add links: Watch on YouTube | Listen on Spotify | Listen on Apple

David Weeks is VP of Partner Experience at N‑able