---
title: "Episode 55:  What is the Rule of Three for MSPs? - Infinite Scale"
description: "In this episode, James explores how MSPs can effectively scale their businesses by gaining control over their time and work-life balance. Welcome to \"Infinite Scale: The Ultimate Podcast for MSPs\" the podcast where we embark on a transformative journey of growth, enlightenment, and strategic expansion. Join us, your knowledgeable guides, as we dive deep into the world of Managed Service Providers (MSPs), equipping you with the insights and strategies needed to propel your business to new heights. In each episode, we unlock the secrets of successful scaling, drawing upon our expertise and the experiences of industry leaders. Through enlightening conversations and thought-provoking discussions, we delve into the intricacies of managing and growing an MSP business while navigating the ever-changing technological landscape. From mastering operational efficiency and optimizing your service delivery model to harnessing the power of automation, we explore the essential elements that empower MSPs to thrive in a competitive marketplace. We share valuable strategies for attracting new clients, retaining existing ones, and cultivating enduring client relationships built on trust and mutual success. But it's not just about increasing revenue and expanding your client base. We understand the importance of fostering a strong company culture, nurturing talent, and developing leadership skills. Insights on effective team management, employee empowerment, and fostering innovation are just a few of the topics we elegantly dissect. Join us as we showcase real-world case studies, unveiling the triumphs and challenges faced by MSPs on their scaling journey. Our discussions will ignite your curiosity, stimulate your entrepreneurial spirit, and provide actionable takeaways that you can implement in your own business. Whether you are a seasoned MSP or just setting foot on this enriching path, \"Scaling Your MSP Business\" is your go-to resource for attaining sustainable growth, profitability, and long-term success. Let us be the trusted mentors who guide you, broaden your perspectives, and inspire you to embrace your entrepreneurial prowess. Get ready to explore fresh ideas, gain valuable insights, and embark on an enlightening journey toward scaling your MSP business. Tune in, absorb our wisdom, and equip yourself with the tools that will transform your aspirations into tangible achievements. With each episode, let us empower you to conquer the challenges of scaling while celebrating the joys of building a thriving MSP business. Hosted by Lara, this podcast is proudly brought to you by Benchmark365 Enlightenment awaits. Subscribe and join us on this remarkable voyage of scaling success."
image: https://benchmark365.com/hubfs/Benchmark365_2023/Images/512.jpg
---

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# Episode 55: What is the Rule of Three for MSPs?

Author : [![James Vickery](https://app.hubspot.com/settings/avatar/a31d4781d5cb37147522b0d750190f95) James Vickery](https://benchmark365.com/blog/author/james-vickery)

Tags : [Outsourcing](https://benchmark365.com/blog/tag/outsourcing), [Podcast](https://benchmark365.com/blog/tag/podcast) 

Date : Mar 18, 2024

In this solo episode of the Infinite Scale podcast, host James Vickery discusses outsourcing for managed service providers (MSPs), a topic central to Benchmark 365's offerings but not often deeply explored on the show. He highlights the evolving market dynamics, especially post-COVID, which have made outsourcing a more common practice among MSPs seeking operational efficiency and improved margins. James outlines four main outsourcing models: freelancing, Business Process Outsourcing (BPO), shared services, and creating an offshore corporation, providing insights into the advantages and challenges of each.

\- \*\*Freelancing\*\* offers a bootstrapping option for MSPs but comes with risks related to reliability and continuity, necessitating what James calls the "rule of three" for redundancy.  
\- \*\*BPOs\*\* manage HR aspects and offer a more structured approach but may not always align with an MSP's culture or specialize in managed services, potentially leading to mismatches.  
\- \*\*Shared Services\*\* provide a turnkey solution without the direct management of staff, suitable for MSPs looking to avoid the complexities of building and managing a team. James advocates for this model, considering it optimal for rapid growth without the hassles of personnel management.  
\- \*\*Building an Offshore Corporation\*\* is mentioned as a complex, long-term strategy requiring substantial commitment and understanding of foreign business environments.

James stresses the importance of choosing the right outsourcing model based on an MSP's specific needs and goals. He encourages MSPs to reassess outsourcing, especially if previous attempts have been less successful, noting the industry's maturity and broader acceptance of such practices. He concludes by inviting feedback and further discussion, highlighting Benchmark 365's openness to assist MSPs in exploring outsourcing solutions.

### Search

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### Episode 52: Scaling Your MSP Business

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### Scaling your MSP – 5 Hard Truths

 Mar 14, 2018 | [MSP ,](https://benchmark365.com/blog/tag/msp) [IT Support ,](https://benchmark365.com/blog/tag/it-support) [Outsoucring ,](https://benchmark365.com/blog/tag/outsoucring) [Blog ,](https://benchmark365.com/blog/tag/blog) [Business Growth ,](https://benchmark365.com/blog/tag/business-growth) [Infinite Scale ,](https://benchmark365.com/blog/tag/infinite-scale) [MSP Pricing ,](https://benchmark365.com/blog/tag/msp-pricing) [Sales & Marketing Resources](https://benchmark365.com/blog/tag/sales-marketing-resources) |By [James Vickery](https://benchmark365.com/blog/author/james-vickery)

 Scaling an MSP the traditional way is far from easy. For 10 years I followed all the...

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![Episode 5: The secrets to scaling your MSP.](https://benchmark365.com/hs-fs/hubfs/Benchmark365_2023/Images/512.jpg?length=1200&name=512.jpg)

### Episode 5: The secrets to scaling your MSP.

 Nov 07, 2019 | [Podcast ,](https://benchmark365.com/blog/tag/podcast) [MSP Operations ,](https://benchmark365.com/blog/tag/msp-operations) [Sales & Marketing Resources](https://benchmark365.com/blog/tag/sales-marketing-resources) |By [James Vickery](https://benchmark365.com/blog/author/james-vickery)

 MSP entrepreneur and author, James Vickery talks about transforming your mindset and...

[Listen here](https://spotifyanchor-web.app.link/e/1eop5oC9mFb)

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