Digital transformation has become a strategic priority for organisations across industries, and technology service providers (MSPs) are often at the forefront of these initiatives. In fact, Gartner reports that 87% of business leaders place digital transformation high on their agenda (Technology isn’t the problem: culture remains biggest barrier to digital transformation - Interface). Yet despite the surge of interest and investment, success remains elusive – studies show only around one-third of digital transformation initiatives achieve their objectives (16 Digital Transformation Statistics for 2025). Why the gap? The answer lies in understanding that true transformation goes beyond implementing new tools. It requires cultural change, operational overhaul, and the right enabling platforms. This blog explores how tech MSPs can drive genuine transformation for themselves and their clients by focusing on more than just technology. We’ll look at the difference between adopting a tool and transforming a business, the critical role of culture and process, the value of ServiceNow’s TPSM and Kaptius’ MSP360 solutions, common challenges MSPs face, and strategies to overcome them – all backed by key industry insights and statistics.
New Tools vs. True Digital Transformation
Adopting the latest cloud platform or AI tool is not the same as achieving a digital transformation. Too often, companies equate buying new technology with being “transformed,” only to find that expected benefits don’t materialize. As McKinsey experts observe, many firms do something on the surface – like launching a new app or system – “but underneath they haven’t rewired the company.” The fundamental processes and ways of working remain unchanged (Digital transformations are failing at an alarming rate – why? - Raconteur). In other words, digitizing an existing process (or adding a shiny new interface) is futile if the underlying business model, workflows, and organizational structure remain stuck in the past.
True digital transformation is holistic. It means integrating technology across the entire organization and aligning it with strategy and operations. It’s about rethinking how value is delivered. Change management is paramount – successful transformations require going deeper to modernize systems end-to-end and to equip people with the skills and mindset to use them effectively (Digital transformations are failing at an alarming rate – why? - Raconteur). Firms that only implement point solutions in one area often create new bottlenecks elsewhere, because other parts of the business aren’t ready to work at the new speed or in the new way. The lesson for MSPs and the clients they serve is clear: focus on process and organizational redesign in tandem with tech adoption. A cohesive, enterprise-wide approach will prevent simply shifting problems around and instead deliver sustainable improvements.
1. It’s Not Just Tech: Culture and Operations Matter
Why do so many digital transformation efforts fall short? A growing body of evidence points to culture and operational habits as the make-or-break factors. Digital transformations undermined by the wrong culture are a big reason roughly 70% of these initiatives fail (Technology isn’t the problem: culture remains biggest barrier to digital transformation - Interface). Leaders often underestimate how deeply entrenched behaviors, silos, and resistance to change can stall even the best technology deployments. According to experts, an organization’s culture plays a more important role in its ability to adopt new technology than budget or even technical know-how (Technology isn’t the problem: culture remains biggest barrier to digital transformation - Interface). In other words, people and processes eat technology for breakfast.
For MSPs driving transformation projects, this means success hinges on engaging people at all levels and updating operational models. Consider that many organizations begin digital projects with high hopes but soon hit roadblocks. Common issues identified by ServiceNow include manual processes, siloed teams, and poor integration, all of which lead to inefficiencies and unmet transformation objectives (MSP360). These are cultural and operational pain points – not technology limitations – and they must be addressed in parallel with any new tool rollout.
Building a culture open to change involves clear communication of vision, strong executive sponsorship, and continuous upskilling. Operationally, it requires breaking down silos and encouraging cross-functional collaboration so that new digital workflows can span departments. In practice, change management should be baked into the transformation plan from day one. Companies that invest in training, process re-engineering, and aligning teams with new ways of working are far more likely to see their tech investments pay off. As one CTO put it, technology challenges can usually be solved, but “often our most significant hurdle is company culture” (Technology isn’t the problem: culture remains biggest barrier to digital transformation - Interface).
2. Enabling Effective Transformation with ServiceNow TPSM and Kaptius MSP360
While cultural change is critical, having the right platform can greatly facilitate that change. This is where ServiceNow’s Technology Provider Service Management (TPSM) and Kaptius’ MSP360 Service Hub come into play. ServiceNow TPSM is a strategic solution designed specifically for technology providers and MSPs. It connects your entire technology operation – from network to customer – on one platform to deliver proactive service and maximize quality (Technology Provider Service Management - CRI Advantage). In essence, TPSM integrates customer care and operations teams, streamlining service delivery to enable tech providers to deliver exceptional customer experiences (Understanding TPSM: The Future Of Tech Service Management). For MSPs managing complex, multi-customer environments, TPSM provides a unified backbone that breaks down silos between support, operations, and customer service.
Kaptius’ MSP360 Service Hub builds on the power of ServiceNow TPSM to ensure MSPs realize the full value of true transformation. It is a tailored solution that fills the gaps in TPSM implementation and aligns the platform with specific MSP business objectives (MSP360). In practice, Kaptius MSP360 helps technology service providers bridge any missing links between out-of-the-box TPSM and their unique operational needs. The goal is to leverage the ServiceNow platform fully – not partially – so that processes and automation are optimized end-to-end. Kaptius brings deep domain expertise from working with global MSPs, which means common pitfalls are addressed from the start. As a result, MSP360 delivers seamless integration, advanced automation, and operational excellence on top of TPSM (MSP360).
How do these tools enable effective transformation? By bringing technology services and operations together on one modern platform, TPSM and MSP360 make it easier to implement best practices quickly. MSP360, for example, accelerates time-to-value through several key capabilities (MSP360):
- Rapid deployment of TPSM with pre-built solutions and templates.
- Seamless integrations across platforms and tools to eliminate data silos and duplication.
- Automated workflows that reduce manual tasks, boosting productivity and consistency.
- Alignment with business goals, ensuring the digital workflows support the MSP’s strategic objectives (not just IT outcomes).
Together, ServiceNow TPSM and Kaptius MSP360 provide a powerful enabler for MSPs to execute transformation projects successfully. They embed agility and best-practice processes into the organization’s DNA, so cultural and operational shifts become more natural. Instead of fighting against outdated systems or fragmented processes, teams have a single system of record and a streamlined way of working. This positions MSPs to deliver faster resolutions, higher transparency, and better customer satisfaction (CSAT) in their services – the very outcomes digital transformation is meant to achieve.
3. Challenges Tech MSPs Face and How to Overcome Them
Even with great technology and good intentions, tech MSPs often encounter stubborn challenges in their transformation journeys. Understanding these roadblocks is the first step to overcoming them. Industry research in 2024 highlights several top challenges: the complexity of current environments (cited by 32% of leaders), gaps in technical talent (27%), and high or unforeseen costs (16 Digital Transformation Statistics for 2025). In MSP contexts, complexity is a major issue – many providers juggle legacy systems, multiple client platforms, and intricate service level agreements. This complexity can breed siloed mindsets and behaviors, where teams focus only on their piece of the puzzle. Lack of skilled talent and change management expertise further complicates executing new initiatives.
Another common challenge is creating a culture of continuous learning and adaptation. Transformation isn’t a one-time project; it’s an ongoing evolution. Yet many MSPs struggle with workforce upskilling (one survey showed 25% of organizations see this as a hurdle) and change fatigue. Resistance to new processes, fear of job disruption, or simple inertia can cause employees to cling to “the way we’ve always done it.” As noted earlier, resistant company culture can be a barrier (and was explicitly pointed out by respondents in industry surveys).
So how can MSPs overcome these challenges and drive lasting change? Here are a few strategies that have proven effective:
- Secure executive buy-in and a clear vision: Transformation must be led from the top. Ensure leadership communicates the why behind changes and aligns digital initiatives with clear business outcomes. When the entire C-suite is accountable for transformation (not just IT), projects have a better chance of staying on track.
- Invest in change management: Don’t treat transformation as purely a technology install. Dedicate resources to training staff on new systems, redefining processes, and encouraging adoption. Celebrating quick wins and new behaviors can help shift mindsets gradually. Remember that over-communicating the vision and progress is better than under-communicating during times of change.
- Simplify and standardize processes: Audit your current workflows and eliminate complexity where possible before layering new tech. Simplification might involve consolidating platforms (for example, moving services onto a unified TPSM platform) and standardizing how different teams operate. This addresses the “complex environment” issue by cleaning up technical debt and divergent processes that hinder agility.
- Leverage integrated platforms to break silos: Utilize solutions like ServiceNow TPSM (with MSP360) to connect previously siloed functions – from sales and service requests to incident resolution and customer communications – in one system. This single source of truth reduces misalignment. For instance, TPSM allows publishing a unified service catalog and coordinating incident responses across all customers on the same platform, which is far more efficient than disparate tools (Technology Provider Service Management - CRI Advantage)
- Start with achievable projects and iterate: Rather than boiling the ocean, target a few high-impact areas for improvement. As one expert advises, you’re often better off aiming for multiple 1% gains across different processes than chasing a single massive 20% leap in one go (Digital transformations are failing at an alarming rate – why? - Raconteur). Small successes build momentum (and ROI) for broader transformation over time.
- Partner with experts and use accelerators: If certain capabilities or knowledge are lacking in-house, consider partnering with specialists. MSPs can engage consultants who bring frameworks and accelerators (like Kaptius MSP360 Service Hub) to jump-start the transformation. These partnerships transfer best practices and provide additional bandwidth to execute complex changes.
By anticipating these challenges and proactively addressing them, MSPs can significantly improve their transformation success rate. It’s telling that even though virtually every large organization now has a digital transformation strategy (94% as of recent surveys) (16 Digital Transformation Statistics for 2025), only about 35% feel they have met their transformation goals (16 Digital Transformation Statistics for 2025). With the right approach, MSPs can beat those odds. In fact, many are already seeing positive returns – 56% of US executives say the ROI of digital transformation has exceeded their expectations, particularly through gains in productivity and customer engagement (16 Digital Transformation Statistics for 2025). Globally, 63% of executives report performance improvements from digital initiatives in just the past two years (16 Digital Transformation Statistics for 2025). These benefits are achievable when technology, people, and processes come together.
4. Conclusion: Driving Successful Transformation (A Call to Action)
Digital transformation for MSPs clearly goes beyond technology – it demands a blend of the right tools, an enabling culture, and refined operations. The difference between an organization that merely implements new software and one that truly transforms is night and day. MSP leaders and change managers who recognize this will be positioned to deliver greater value to their customers and stay ahead of the competition in a fast-evolving market. By prioritizing cultural alignment, investing in platforms like ServiceNow TPSM, and leveraging expert solutions such as Kaptius MSP360 to bridge gaps, MSPs can overcome common pitfalls and accelerate their transformation journey.
If your MSP is ready to move past simply “adopting new tech” and start realizing true digital transformation, now is the time to act. Kaptius, as a leading ServiceNow partner, has the experience and solutions (like MSP360 Service Hub) to guide you through the process – from strategy to implementation to continuous optimization. Don’t let 70% failure rates scare you off; with the right approach, your transformation can be among the success stories.
Ready to go beyond technology and drive lasting change? Contact Kaptius to learn how we can help you leverage ServiceNow TPSM and our MSP360 framework to achieve your transformation goals. Let’s turn high hopes into tangible results and set your organization up for efficiency, innovation, and growth (MSP360). The future of tech belongs to those who transform effectively – and that journey starts with the next step you take today.
