The managed services industry is undergoing a fundamental transformation. As regulatory requirements tighten and cyber threats escalate, businesses are no longer satisfied with basic IT support — they expect their Managed Service Providers (MSPs) to be proactive partners in compliance and risk management. Enter Compliance as a Service (CaaS): a game-changing opportunity for MSPs to drive growth, deepen client trust, and future-proof their business.

Why Compliance as a Service Matters Now

Regulatory pressure is mounting across every sector. From FTC Safeguards and HIPAA to CMMC and NIST, businesses face a complex web of requirements, and many lack the in-house expertise to keep up. This is where MSPs can step in — not just as IT fixers, but as trusted advisors guiding clients through the compliance maze.

CaaS enables MSPs to:

• Reduce client risk and liability: By maintaining continuous compliance, businesses avoid costly fines, reputational damage, and operational disruptions.

• Enhance security posture: Compliance frameworks require robust security controls, making compliance and cybersecurity inseparable.

• Free up client resources: Outsourcing compliance lets clients focus on their core business while experts handle the heavy lifting.

Growth Opportunities for Forward-Thinking MSPs

Shifting into compliance services isn’t just about staying relevant — it’s a strategic move to unlock new revenue streams and long-term relationships:

• Expand into regulated industries: Sectors like healthcare, finance, and government contracting are actively seeking compliance expertise.

• Upsell existing clients: Many customers need compliance support but may not realize it until their MSP brings it to the table.

• Differentiate in a crowded market: With over 338,000 MSPs globally, offering CaaS sets you apart as a true business partner, not just a service provider.

How to Launch a Successful CaaS Offering

Building a CaaS practice requires more than adding another tool to your stack. It’s really a shift in mindset, process, and positioning. Here’s how to get started:

1. Assess and Prepare Internally

• Evaluate your own compliance readiness: Can your MSP meet the standards you’ll be advising on? Start by implementing a compliance framework internally to gain firsthand experience.

• Train your team: Compliance is about process and documentation as much as technology. Invest in training on relevant frameworks (HIPAA, NIST, CMMC, ISO 27001) and emphasize the importance of audit trails and policy enforcement.

2. Choose the Right Frameworks

• Align with your target industries: Not every client needs the same compliance regime. Focus on frameworks that match your client base, such as HIPAA for healthcare or CMMC for government contractors.

• Leverage automation platforms: Tools like Blacksmith Infosec can streamline assessments, documentation, and ongoing monitoring, making CaaS scalable and efficient.

3. Deliver Ongoing Value

• Continuous monitoring and reporting: Compliance isn’t a one-time project — it’s an ongoing process. Provide regular assessments, risk analysis, and compliance status updates to keep clients audit-ready.

• Proactive communication: Keep clients informed about regulatory changes and emerging risks. Position yourself as their compliance advocate, not just their IT vendor.

From Service Provider to Trusted Advisor

MSPs that embrace CaaS move beyond technical support to become strategic partners. Compliance conversations touch every aspect of a client’s business — legal, financial, and operational — elevating your role and deepening trust.

“If we’re not doing compliance as a service, then we’re putting our business at risk for someone else to come in and do compliance for them, and then they’ll use that to take over our business.”
— Paul Tracey via MSP Success

The Bottom Line: The Time to Act Is Now

The shift to compliance services is underway, and MSPs that hesitate risk being left behind. By integrating CaaS into your offerings, you can:

• Command premium pricing for specialized expertise

• Build resilient, long-term client relationships

• Secure your place as a leader in the evolving managed services landscape

Modern businesses want more than IT — they want peace of mind. With Compliance-as-a-Service, MSPs can deliver both, unlocking new growth and establishing themselves as indispensable partners for the future.