How IT service providers in Latin America are adapting their business models for long-term growth
Across Latin America (LATAM), IT service providers are operating in markets that are changing at different speeds but moving in the same direction. Research from Colombia and Mexico shows growing pressure to transition from reactive support to proactive service models that are easier to deliver and simpler for customers to understand and pay for.
Reactive work limits predictability and keeps revenue tied to incidents. Proactive models rely on standardized services, defined agreements and ongoing monitoring that support recurring revenue and clearer accountability. Providers that make this shift will gain better control, stronger service quality and a more stable path to growth as customer expectations continue to rise.
Reactive service models are keeping client bases small across the region
In both Colombia and Mexico, a significant proportion of IT service providers continue to manage a small number of customers. In Colombia, more than half (52%) of providers serve between one and five clients, with only modest growth expected in the near term. This shows a market where many service providers still rely on reactive support, tying technician time directly to incidents and limiting how many customers a team can realistically support.
Mexico shows a similar pattern, although the market is more mature. About 43% of providers currently manage one to five clients, but that share is expected to decline to 38% as more businesses build the capacity to support seven to twelve customers. This shift signals preparation for scale, driven by greater use of standardized processes and proactive services, even as competition intensifies.
Opportunity for growth in the midmarket segment
In both markets, the midmarket remains largely underserved. These organizations are larger and more operationally complex than small businesses, yet they often lack the budget or scale to build fully staffed internal IT teams. As a result, they depend heavily on external providers to maintain uptime, manage security risks and support day-to-day operations.
For IT service providers, this gap represents a meaningful growth opportunity. Serving the mid-market successfully requires a shift from ad hoc support to structured service delivery that can scale as customer environments grow. When providers make this transition, several advantages follow:
- Higher contract value and predictable revenue
Midmarket organizations expect defined services rather than hourly support. Clear SLAs and recurring service bundles create predictable monthly revenue and stronger cash flow.
- Greater operational efficiency
Standardized service delivery replaces manual work, freeing technician hours. Providers can support more clients without increasing headcount — a critical advantage in markets facing talent shortages.
- Stronger customer retention
Proactive monitoring and consistent reporting reduce downtime and build confidence. When service quality is visible and reliable, customers are less likely to switch providers.
- A clearer path to specialization
Many midmarket clients operate in regulated or operationally complex environments. Supporting them creates opportunities to develop vertical expertise that further differentiates the provider.
Proactive services are becoming a baseline expectation
Before IT service providers across the region can reach the next stage of growth, changes in how services are delivered are required. Research shows that service providers across the region are moving away from reactive support toward proactive services that scale more effectively and align better with customer expectations.
One of the strongest signals from the research is the growing focus on proactive monitoring. In Colombia, only 24% of service providers currently offer proactive monitoring, yet more than half (55%) plan to introduce it in the near term. Interest in automated patching and round-the-clock support is also increasing, reflecting a broader understanding that reactive models limit growth and strain small teams.
IT providers in Mexico are further along this transition. A whopping 87% plan to add continuous monitoring and SOC services, while 83% intend to invest in advanced antivirus (AV) solutions. In a more competitive and mature market like Mexico, proactive services are already viewed as essential for managing risk and maintaining uptime.
Security and backup are driving differentiation
Latin America has seen a sustained rise in cyber activity. Recent research shows that more than 1,600 attacks are reported every second across the region, with disclosed incidents increasing by roughly 25% per year over the past decade. Organizations expect IT service providers to identify risks early, limit exposure and maintain continuity.
Against this backdrop, cybersecurity has emerged as one of the strongest growth drivers across both Colombia and Mexico. In Colombia, 87% of IT service providers identify advanced AV and AI-driven security as priorities for their portfolios, even though many acknowledge they lack the tools or expertise to deliver these services today. This gap highlights an opportunity for providers that are willing to invest early and build security-focused offerings that go beyond basic protection.
Mexico’s market shows how this shift plays out in a more mature and competitive environment. About 83% of providers plan to add advanced AV, while 85% intend to expand backup and disaster recovery services. Clients increasingly view security and backup as interconnected components of business continuity, rather than standalone add-ons. When combined, these services help IT service providers offer more comprehensive service packages and corner a bigger share of the market.
How security and backup support profitable service models
Global patterns show a clear connection between security-focused service portfolios and stronger financial performance. Higher-earning IT service providers, particularly those generating $10 million or more in annual revenue, tend to lead with services such as endpoint detection and response (EDR), managed detection and response (MDR)/managed SOC and managed backup. These offerings are delivered as ongoing services rather than one-time projects, which changes how value is priced and sustained over time.
Proactive security reduces the volume of emergency incidents, lowers time spent on unplanned remediation and allows service providers to standardize delivery through automation and centralized tools. Providers that prevent incidents and restore operations quickly are viewed as partners responsible for business continuity rather than vendors called after failures occur. This trust increases retention and makes it easier to expand contracts as customer environments grow.
Building scalable service delivery through integration and automation
As IT service providers expand their service portfolios, operational efficiency becomes a primary constraint on growth. Adding security, backup and proactive monitoring increases customer value but also adds complexity behind the scenes. Integrated tools with built-in automation and shared workflows makes a difference, helping providers deliver on their service promises and scale in a cost-effective way.
When teams rely on fragmented tools, much of their time is spent switching between systems, reconciling duplicate data and fixing broken workflows. This takes focus away from higher value work, slows response times, increases the risk of errors and makes it harder to deliver consistent service as client environments grow.
This challenge is especially visible in Mexico, where 95% of providers say they want deeper integration across their tools to streamline service delivery. In Colombia, similar pressures show up in different ways. Many providers still rely on manual documentation and inconsistent reporting, which contributes to missed SLAs and service gaps. In both markets, the underlying issue is the same. Fragmented systems make it difficult to deliver consistent service as client numbers grow.
IT service providers that simplify their toolsets and automate core processes gain predictability in both operations and outcomes. Predictable service quality makes it easier to support more clients without increasing headcount, which in turn creates a scalable foundation for growth as service portfolios and customer expectations continue to expand.
Turning insight into action
For IT service providers in Latin America, growth depends on replacing reactive support with managed services that are predictable, scalable and aligned with how customers define value. Making this shift does not need to be complex or disruptive. The right solutions reduce friction instead of creating more work.
By starting with Datto RMM and Datto PSA as the foundation, providers can build an integrated operating model that supports scale without adding complexity. These core tools connect seamlessly with Datto’s security solutions, including AV, EDR and managed SOC, bringing monitoring, security and service management into a single view of each client environment. This reduces time spent switching between tools and gives teams better visibility into issues as they emerge.
For IT service providers across Latin America, Datto provides a practical path away from constant firefighting and toward a business model designed for steady growth and long-term confidence as expectations continue to rise. Explore Datto solutions for a closer look.
