Making the Channel Partners MSP 501 gets tougher every year as we get more applications and the overall managed services market grows. As a result, we find more successful MSPs that don’t make the top 501.

We created the MSPs to Watch list in 2024 to recognize those who miss out on the 501 but show promise. This year’s list includes 39 MSPs we think have potential to make the 501 soon. Unlike the Next Generation list that includes the most innovative MSPs, all the MSPs to Watch MSPs failed to qualify for the 501. Either they missed our revenue cutoff or fell short in another key area but overall appear poised for growth. These MSPs gain most of their revenue from managed services, are high performers in terms of percentage of revenue from recurring revenue, and boast impressive growth forecasts for 2025.

You can see the entire MSPs to Watch list here.

Here’s a snapshot of the 2025 MSPs to Watch and how they compare to MSP 501 winners:

• MSPs to Watch had average total revenue of $9.5 million and average recurring revenue of $7.1 million. On average, they re-invested 43% of profits. (MSP 501 winners average $27 million in revenue and $16 million in recurring revenue. They reinvested 41% of profits into the business.)
• All MSPs to Watch expect to increase revenue by more than 10% with 45% of them expecting to increase more than 20%. When it comes to managed services profits, 85% of the MSPs to Watch expect to increase by more than 10% with more than one-third forecasting an increase of at least 20%. (Two-thirds of MSP 501 companies expect to increase revenue by more than 10%, and 20% expect to increase more than 20%. Fifty-eight percent of the MSP 501 list expects to increase managed services profits by more than 10% and 21% expect to increase more than 20% in 2025.)
• MSPs to Watch had an average of 229 customers at the end of 2024 compared to an average of 1,579 for MSP 501 winners.
• MSPs to Watch average headcount was 45.12 compared to 116 for MSP 501 companies.

The MSPs to Watch list has strong international representation with four each from Canada and the U.K., three from Australia and one from India.

MSPs to Watch Validates Growth-Based Strategies

Design2Web IT founder and technical lead Avinesh Bangar called inclusion on the list “a proud milestone” for his Abbotsford, British Columbia-based MSP.

“Over the past year, we’ve strengthened our position as a trusted IT partner by delivering innovative, secure, and scalable solutions for our clients, while expanding our capabilities in cloud migrations, cybersecurity, and managed services,” Bangar said.

Cody Krissberg of Peoria, AZ–based Sirius Office Solutions called making the MSPs to Watch list “a tremendous honor for our team” that will motivate the MSP to continue to grow.

“This recognition motivates us to keep pushing forward, innovate continuously, and accelerate our growth in 2025,” Krissberg said. “It validates our commitment to delivering exceptional managed services and reinforces that our strategic focus is on the right path. This past year, we introduced a technical alignment process designed to ensure we consistently meet our clients’ needs while aligning their technology and security stacks with industry best practices. This proactive approach has helped us build stronger client relationships, grow our recurring revenue, and deliver on our promises with greater confidence.”

Hugh Caldwell, director of Edinburgh, UK-based Texaport, said his MSP built momentum in 2024 that he expects to accelerate.

“We see this recognition as both a celebration of our progress and a clear affirmation of our growing influence in the MSP space,” Caldwell said. “With recurring revenue growth exceeding forecasts, a strong pipeline of ambitious projects across the UK and Europe, and plans underway to meet the demand of our international client base, we’re well-positioned for our strongest year yet. This recognition confirms that our growth story is only just beginning."

Plex IT managing director David Payne said he considers the MSPs to Watch list validation for the Melbourne, Australia-based MSP.

“Being named to the MSPs to Watch list is a strong signal that our approach at Plex IT is working,” Payne said. “We’ve built on scalable, client-facing solutions, strong project governance, and delivering measurable ROI, technology that drives real business outcomes. This recognition affirms our focus on high-impact solutions, scope discipline, and sustainable growth. With major opportunities in AI enablement, intelligent automation, and expanding the role of MSPs as strategic partners, this milestone confirms we’re on the right trajectory to deliver on our vision.”