Why Compliance Management Software Is the Secret Sauce for Growth-Minded Security Providers

What makes you stand out from other security providers offering the same services? In an increasingly commoditized market, you need an edge. A secret sauce. A pièce de résistance. And for growth-minded MSPs and MSSPs, compliance management software is that differentiator.

With a growing list of laws, regulations, and industry standards, compliance management has become a must-have for organizations of all types and sizes. And while this presents a growth opportunity for managed service and security providers, few are capitalizing on it due to resource, knowledge, and budget gaps.

In this article, we'll explore how the right compliance management software can help your managed services business bridge those gaps. The result? Differentiated services that lead to higher margins, revenue, and customer retention.

What is Compliance Management Software?  

‍Compliance management software, often referred to as compliance risk management software, is a specialized tool designed to assist managed service and security providers in helping clients streamline and automate various aspects of their compliance programs. 

In an increasingly complex regulatory environment, this software serves as an essential resource for providers, enabling them to efficiently safeguard their clients’ reputations and financial well-being. It provides a centralized platform for managing regulatory requirements, tracking compliance activities, and monitoring adherence to internal policies and procedures, reducing the need for manual processes and inefficient spreadsheets. 

Key features and capabilities of compliance management software may include: 

• Regulatory Content Libraries: Access up-to-date information on relevant laws, regulations, and industry standards for your clients, ensuring they stay current with compliance obligations. These libraries offer a comprehensive view of the regulatory landscape, helping clients meet requirements and avoid penalties. 
• Risk Assessment Tools: Identify, assess, and prioritize compliance risks for your clients across their organizations. With these tools, you can help them proactively manage their risk profiles, allocate resources efficiently, and minimize potential exposure to compliance violations.
• Policy Management: Centrally manage and distribute internal client policies and procedures, as well as track employee attestation. By centralizing policy management, you can ensure consistent compliance efforts and clear communication for your clients. This fosters a culture of accountability and transparency, while also simplifying the process of updating and enforcing policies. 
• Incident Management: Streamline workflows for reporting, investigating, and resolving compliance incidents, including tracking corrective actions and generating reports. With efficient incident management, providers can help clients minimize the impact of compliance incidents, demonstrate their commitment to maintaining regulatory standards, and facilitate continuous improvement in their compliance programs. This proactive approach enables providers to help clients build trust among stakeholders and avoid costly repercussions associated with non-compliance.

Compliance management software, when leveraged effectively, can help you drive growth, increase margins, and set your business apart. 

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The Benefits of Compliance Risk Management Software 

Compliance management software is a powerful tool that can help not only manage compliance obligations but also build a thriving business. By investing in a comprehensive software solution, providers can help clients enjoy numerous advantages that contribute to both regulatory adherence and overall business success. Here’s how: 

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1. New Revenue Streams and Continuous Growth 

According to the findings in our recent State of Continuous Compliance Report, 85% of providers face challenges maintaining compliance for their clients. But with the right compliance management software, you can go to market with a formal, productized recurring offering that enables growth for you and your clients. It’s an onramp to high-margin revenue acceleration that can help set your business apart from stiff competition.

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2. Demonstrate Value and Sell More Services 

Compliance management software can help you validate and increase consumption of your security services to clients and prospects. It’s likely your security services are already satisfying framework controls in some way. So, by mapping those services to the compliance requirements they help fulfill, you have a completely unbiased way to show the value and ROI of those offerings. This not only encourages clients to invest in more of your services — boosting revenue and growth — but also fosters stronger, long-lasting relationships, reducing churn.

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3. Improved Efficiency and Higher Margins 

Streamlining your internal processes is key to increasing margins and profitability. The right compliance management software will help you optimize operations, reduce costs, and drive efficiency, resulting in a healthier bottom line. According to our State of Continuous compliance report, 42% of providers struggle with the high costs associated with compliance management, emphasizing the importance of cost reduction and improved operational efficiency. 

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What Compliance Challenges Do Providers Face?

Managed service and security providers face distinctive challenges when it comes to compliance management, particularly with the rapid evolution of regulations and standards. Staying up-to-date and ensuring their systems, processes, and policies remain compliant can be overwhelming for MSPs and MSSPs. 

For our State of Continuous Compliance Report, we asked providers about the key challenges they face managing compliance for their clients. Here’s what they said: 

• Lack of Resources: Limited resources pose a significant challenge for 45% of providers in the security industry. With compliance management demanding considerable time and effort, inadequate staffing and expertise can hinder effective compliance management. 
• High Cost: Compliance management can be expensive, with 42% of providers struggling to manage costs. This financial strain can limit their ability to invest in resources, hire experts, or acquire necessary tools. 
• Lack of Expertise: As regulations become more complex, the need for specialized knowledge grows. However, 37% of providers find it challenging to navigate conflicting or ambiguous requirements, suggesting a skills gap in the industry. 
• Lack of the Right Tools/Tech: Technology plays a crucial role in streamlining compliance processes. Providers that lack access to appropriate tools, such as compliance automation platforms, may struggle to keep up with regulatory changes and efficiently manage assessments. This challenge affects 36% of providers. 

Compliance management software offers a powerful solution to overcome these challenges. By automating tasks, providing real-time insights, and offering expert guidance, software platforms can help security providers navigate the complexities of compliance more efficiently and effectively. 

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Selecting the Ideal Compliance Management Partner 

To reap the benefits mentioned above, it’s essential to choose the best compliance management software for your unique needs. Follow these steps to find the perfect match: 

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1. A Comprehensive Solution

The ideal software should provide a full suite of features and functionalities that address your specific compliance and security needs. Look for capabilities like questionnaire-based assessments, automated reporting, customizable alerts, and more. 

2. Seamless Integration 

A platform that integrates easily with your existing security services and workflows will save you time, effort, and money. Opt for solutions that support crosswalking multiple frameworks and are compatible with industry-standard tools. 

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3. Scalability and Long-Term Growth Support 

As your business evolves, your compliance management software should be able to adapt and grow with you. Assess the platform’s scalability and the vendor’s ability to support your long-term growth ambitions. 

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4. Proven Expertise and Track Record 

Don’t underestimate the importance of vendor reputation and expertise. Select a partner with a proven track record of success in the compliance management space and a deep understanding of your industry's unique challenges. 

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Overall, compliance management software is a powerful tool that can help MSPs and MSSPs break free from the constraints of commoditization. By considering these factors closely and investing in the best compliance management software partner, you can confidently surpass the limitations of commoditization and create an environment of continuous growth, innovation, and success.  

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What Sets Apptega Apart 

Apptega distinguishes itself as a leading compliance management software solution for MSPs and MSSPs, and our partners experience greater success and optimism. Here’s why Apptega should be your go-to choice: 

• Higher Revenue from Compliance: Apptega partners generate more revenue from compliance services, with 21% earning over half of their income from compliance, compared to only 13% of non-partners, as per Apptega’s State of Continuous Compliance Report. 
• More Recurring Compliance Revenue: Apptega partners enjoy more stability in their compliance earnings, as 36% of their compliance revenue comes from recurring engagements, while only 26% of non-partners have similar revenue sources.
• Ambition ARR/MRR Goals: Apptega partners set higher annual recurring revenue (ARR) and monthly recurring revenue (MRR) growth goals, with 62% aiming for double-digit growth, surpassing the 56% of non-partners with the same aspirations. 
• Confidence Meeting Financial Targets: Apptega partners are more confident in achieving their ARR/MRR goals, with 67% believing they will hit their targets, compared to 43% of non-partners that express the same optimism. 
• Compliance as a High-Growth Area: Apptega partners recognize the growth potential in the compliance sector, as 90% show interest in transforming one-off engagements into continuous projects, outpacing the 60% of non-partners with similar intentions. 

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The Bottom Line 

By carefully assessing potential software partners and choosing a solution that harmoniously integrates with existing systems, scales with your business, and delivers reporting and analytics features, security providers can empower their business to overcome challenges and seize new opportunities.

With a dependable compliance management software partner at your side, your business can gain a competitive advantage that paves the way for long-term success. 

Interested in learning more about the ROI of compliance management software? See the value of Apptega’s continuous compliance platform in your own numbers.