Why Compliance is Now Core for Every MSP
What is MSP Compliance Software?
Amid increasing regulatory demands, Managed Service Providers (MSPs) now shoulder expanding responsibilities. Beyond traditional IT security, MSPs must ensure comprehensive compliance with proliferating standards including HIPAA, FTC regulations, Europe's NIS2 Directive, and DORA. This evolution coincides with robust global growth in the managed services market.
According to Canalys, IT managed services revenue is projected to climb to $595 billion in 2025, with nearly 341,000 partners delivering services worldwide. The Asia-Pacific region is leading the way with 15% growth, while EMEA and North America follow at 12% and 10%, respectively. As compliance becomes a central concern, MSPs that can combine regulatory expertise with robust security offerings are poised to lead the next phase of industry growth.
MSP compliance software is designed specifically for the multi-client, multi-framework environment MSPs work within. Unlike enterprise compliance platforms, these solutions give MSPs:
- Client-specific compliance monitoring.
- Centrally managed compliance evidence collection.
- Risk assessments tailored to different industries.
- Customizable policy management tools.
Without purpose-built software, compliance management across dozens of clients becomes a logistical nightmare.
The Expanding Regulatory Landscape
For MSPs, regulatory compliance is no longer optional. Regulations are rapidly expanding across industries and geographies. Compliance frameworks include, for example:
- SOC 2 for technology providers
- HIPAA for healthcare
- NIST 800-171 for defense contractors
- NIS2 for European supply chains
- FTC Safeguards Rule for financial services
- ISO 27001 for organizations globally
Even companies not directly subject to these rules will increasingly need compliance assurance from their service providers.
See how easy it is to integrate Compliance as a Service into your MSP offering.
The Automation Myth: Why Compliance Can’t Be Fully Automated
Some MSPs believe they can “set and forget” compliance with the right software. That’s a dangerous assumption. Compliance is part process, part technology, and part human oversight.
Automation + Expertise = Real Compliance
The most successful MSPs use compliance software to:
- Automate low-value tasks (tracking of policy signatures, approvals, and adoption status)
- Support high-value conversations (policy creation, risk review)
Compliance Scorecard embraces this philosophy with:
- Risk assessments
- Policy templates
- Human-assisted risk mitigation strategies
- Peer community discussions for complex issues
Key Features of Leading MSP Compliance Software
1. Multi-Client Dashboard
Managing dozens of clients under different frameworks demands a single-pane-of-glass dashboard, allowing MSPs to:
- View real-time compliance posture per client.
- Manage different frameworks per client.
- Track policy adoption, risk levels, and audit readiness across all accounts.
2. Continuous Risk Assessments & Gap Analysis
Ongoing compliance means ongoing assessments. Compliance Scorecard’s automated risk assessments:
- Identify compliance gaps in real-time.
- Compare current posture vs. required controls.
- Provide actionable remediation plans.
3. Built-in Policy Management & Template Library
Policy creation is one of the biggest hurdles for MSPs offering compliance services. Compliance Scorecard solves this with:
- Pre-built templates for FTC, HIPAA, CMMC, NIST, ISO, SOC 2
- Fully customizable policies per client.
- Version tracking, approvals, and audit logs.
4. Seamless Audit-Ready Reporting
Clients need proof of compliance. Auditors need documentation. Compliance Scorecard automatically generates:
- Audit-ready reports per client
- Change management logging
- Client-friendly risk summaries
5. Direct Integrations with PSA, RMM & Common MSP Tools
Effective compliance management requires pulling data from:
- PSAs (like ConnectWise)
- RMM platforms (like NinjaOne or N-able)
- Document repositories (like M365 Graph)
Compliance Scorecard eliminates manual data entry with native integrations.
Why MSPs Can’t Afford Manual Compliance Management
The Cost of Spreadsheet-Driven Compliance
MSPs trying to manage compliance via spreadsheets face:
- Hours of duplicated effort per client
- Missed deadlines and lost documents
- Zero scalability
- Inconsistent processes across frameworks
Case Study: centrexIT
centrexIT struggled with exactly these issues before adopting Compliance Scorecard. The result?
- Standardized client onboarding
- Accelerated policy creation (under 2 hours)
- New recurring revenue streams from policy management
- Enhanced client trust through proactive compliance support
Learn how centrexIT leveraged Compliance Scorecard to drive more revenue.
Compliance-as-a-Service (CaaS): Your Next Revenue Stream
Positioning CaaS to Clients
Clients no longer just want IT management. They want risk reduction, compliance assurance, and audit support. MSPs offering Compliance-as-a-Service (CaaS) can:
- Charge for ongoing risk management
- Bundle compliance monitoring into managed service contracts
- Offer audit preparation services
Monthly Recurring Revenue (MRR) Potential
Compliance services aren't one-time projects. They create defensibility through:
- Quarterly Business Reviews (QBRs) to document ongoing due diligence
- Documented risk assessments that demonstrate reasonable security measures
- Client-driven risk decisions with proper evidence of informed consent
- Continuous policy refinement showing adaptation to changing requirements
- Comprehensive audit trails that support legal and regulatory defensibility
With the right software, these services are both high-margin and scalable.
Feature Comparison: Compliance Scorecard vs. Other MSP Compliance Platforms
Framework Deep Dives: FTC, HIPAA, CMMC, NIST, ISO, SOC 2
SOC 2: The Must-Have for Technology Providers
SOC 2 focuses on security, availability, processing integrity, confidentiality, and privacy. Compliance Scorecard helps MSPs:
- Align with the AICPA Trust Services Criteria.
- Manage risk registers tied to SOC 2 controls.
- Generate SOC 2 readiness reports automatically.
HIPAA: Essential for Healthcare Clients
For healthcare clients, MSPs must manage:
- HIPAA Security Rule compliance.
- Business Associate Agreements.
- Ongoing risk assessments.
Compliance Scorecard provides:
- Pre-built HIPAA policy packs.
- Documentation for covered entities.
- Automated evidence collection for audits.
NIS: The Emerging Global Standard
The NIS Directive sets tough new standards for:
- Incident reporting (within 24 hours).
- Management liability for security failures.
- Supply chain risk management.
Compliance Scorecard’s NIS2 toolkit:
- Provides NIS policy templates.
- Tracks incident reporting timelines.
- Ensures supply chain audits are documented.
How to Choose the Best MSP Compliance Software
1. Define Your MSP’s Goals
Are you focused on:
- Healthcare clients (HIPAA)?
- Tech startups (SOC 2)?
- Government contracts (CMMC)?
2. Evaluate Pricing Models
Avoid per-user pricing. Look for:
- Per-client pricing (like Compliance Scorecard).
- Free internal use for your own MSP.
3. Prioritize MSP-Specific Features
Generic GRC platforms miss the mark. MSPs need:
- Multi-client dashboards.
- Pre-built client templates.
- Risk scoring across all accounts.
See Compliance Scorecard in action. Schedule a Live Demo now.
The Future of MSP Compliance Software
While this is not geared towards a specific MSP Compliance Software and Compliance Scorecard does not explicitly offer this, you may see a few of these capabilities industry-wide in the future.
1. AI-Driven Compliance Insights
Next-gen platforms may:
- Automatically score risks based on real-time data.
- Suggest policy updates based on changing regulations.
2. Deep Cybersecurity Integration
Compliance platforms may pull from:
- SIEM alerts.
- Vulnerability scanners.
- Endpoint protection platforms.
3. CaaS Becomes the Standard MSP Offering
By 2027, leading MSPs will all offer Compliance-as-a-Service — combining compliance, risk management, and cybersecurity.
Compliance: Your Untapped Competitive Edge
Smart MSPs recognize what others miss—compliance requirements create genuine revenue opportunities. While competitors view regulations as obstacles, forward-thinking providers transform compliance demands into profitable service offerings that clients actually need.
This shift happens when you position your MSP as a compliance partner rather than just another technology vendor. By offering Compliance-as-a-Service, you extend your security expertise into an area where clients face increasing pressure but lack internal resources.
The Market Is Ready
Look at your client base. Healthcare providers navigating HIPAA. Financial firms tackling FTC Safeguards. Manufacturers adapting to supply chain security requirements. Technology companies pursuing SOC 2.
Even clients without direct regulatory mandates now face vendor assessments from their own customers—creating demand for compliance guidance across every sector.
MSPs who master this conversation become trusted advisors. Those who guide clients through frameworks, assessments, and documentation naturally stand apart from commodity IT providers.
Compliance Scorecard: Built for MSPs Like You
Generic GRC platforms fall short for service providers. Compliance Scorecard is MSP compliance software built by an MSP who understands the challenges of multi-client management and service delivery.
Compliance Scorecard delivers:
- Centralized multi-client oversight from a unified dashboard
- Framework flexibility supporting multiple standards in one platform (FTC, HIPAA, CMMC, NIST, ISO, SOC 2)
- Industry-first Kickstart program with a proven 3-month implementation path
- Integrated approach combining platform, services, and community expertise
- Education-first methodology that helps operationalize compliance into daily operations
These elements combine to help you efficiently assess client environments, implement appropriate controls, and provide ongoing compliance monitoring that transforms security requirements into predictable recurring revenue.
From Compliance Burden to Business Driver
Regulatory requirements continue expanding across industries and clients increasingly expect technology partners who can navigate these complexities.
With Compliance Scorecard's MSP compliance software, your team can:
- Capture profitable recurring revenue by delivering compliance as a service
- Differentiate your business from competitors stuck in the "IT services only" mindset
- Win new clients seeking vendors who understand compliance requirements
- Reduce risk through systematic implementation of security best practices
MSPs who adopt Compliance Scorecard now gain first-mover advantage in their markets. Establish your practice as the compliance authority before competitors catch up.
The Bottom Line: Make CaaS Your Strategic Advantage
Compliance requirements grow more demanding each quarter. Savvy service providers see beyond the paperwork and recognize the substantial business opportunity hidden within these mandates—a direct route to higher-value services and stronger client partnerships.
MSPs who embrace compliance now position themselves for several clear advantages:
- Expanded service offerings that generate higher margins
- Stronger client retention through demonstrated expertise
- Improved operational efficiency via standardized processes
- Enhanced credibility in increasingly competitive markets
The distinction between security and compliance continues to blur. Clients no longer see these as separate concerns but as integrated elements of their risk management strategy. MSPs that bridge this gap deliver significantly more value than those who remain focused solely on traditional IT management.
The MSPs who thrive in this new environment will be those who build compliance expertise into their core identity—making it a fundamental part of how they approach client partnerships rather than just another service line item.
Whether you're just beginning to explore compliance services or ready to scale an existing program, you have access to tools, frameworks, and methodologies that transform compliance requirements into business opportunities. The right MSP compliance software serves as both foundation and accelerator for this journey. The competitive edge belongs to those who act decisively. Will your MSP lead this transformation, or simply react to it?
Ready to see Compliance Scorecard in action?
Schedule a live demo and discover how our MSP compliance software can help you capture this opportunity today.