Is time tracking in IT support and MSP environments still valuable, or has it become obsolete?
SaaS vs. IT Delivery
Software-as-a-service support models track metrics like customer acquisition cost. MSPs should focus on service consumption metrics that truly reflect client interactions — understanding what’s working and identifying improvement areas.
The Platforms Aren’t Modernized
Current ticketing systems feel outdated, cumbersome, and create significant friction for technicians. PSA vendors need to completely rethink and potentially rebuild their platforms from the ground up to improve both technician and end-user experiences.
Time Entry Is Painful
While acknowledging resistance to time tracking, it remains essential for knowledge-based businesses. Time tracking effectively measures value contribution, benefiting all parties involved.
Time Entry Shouldn’t Be Painful
The solution isn’t eliminating time tracking but making it effortless. The 80/20 rule applies — logging 6 of 8 work hours suffices; detailed 15-minute increments create unnecessary overhead.
Quiet Clients Matter Too
Accounts generating over 70% margins warrant equal attention. Account management should focus on fostering strong relationships and understanding the needs of all clients, regardless of profitability levels.
Measuring Profitability
Month-to-month profitability measurements lack meaning, but identifying trends is crucial. If profit margins consistently decline, investigation and corrective action are necessary.
Time Isn’t Everything
Multiple metrics create context for better decision-making. Track “expensive tickets” — those exceeding 4 hours — to ensure timely resolution and prevent scope creep.
Time Entry Misses Backend Work
Time tracking doesn’t capture centralized platform maintenance costs (RMM, antivirus, backup systems). However, these distributed costs should show net positive departmental efficiency without disproportionately burdening individual clients.
Emotional Cost of a Client
Service agreements should factor in relationship difficulty. My MSP charged problematic clients more and maintained a quarterly “shit list” of five challenging clients to guide retention decisions.
Account Management Cost
Account managers can be tracked as overhead or SG&A expenses. While detailed time logging from salespeople is unrealistic, it is beneficial if they log key activities, such as major meetings, TBRs, and project reviews.
The Future of Time Tracking
Machine learning could automate time analysis, similar to O365 monitoring or RescueTime, eliminating manual entry burdens.
Cultural Differentiation
Strong cultures can coexist with time accountability. I’ve observed highly engaged staff in organizations prioritizing time tracking. However, excessive oversight — tracking bathroom breaks or specific lunch durations — proves counterproductive.
Time Entry Isn’t The Bad Guy
Current methods are flawed but fixable. Modern PSA systems could leverage metadata from tools and asset interactions to automatically attribute work to specific clients, reducing manual burden while maintaining visibility.
It’s not that you can’t run a decent business without it; I simply feel that time tracking isn’t the villain you might think it is.
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