ERP Software for IT Services & Managed Services
IT services firms and managed service providers operate in a world of recurring contracts, SLA commitments, ticket queues, and hardware resale — layered on top of traditional project delivery. ERP systems for this sector must handle managed services recurring revenue, break-fix billing, project-based implementation work, hardware procurement, and service contract renewals within a single platform that keeps technicians productive and clients satisfied.
Compare ERP Systems for IT Services & Managed Services
Select up to 4 ERP vendors to compare side by side. Filtered to show systems with strong it services & managed services capabilities.
Key Challenges for IT Services & Managed Services
Managing recurring managed services revenue alongside one-time project billing in a single system
Tracking SLA compliance and technician utilization across hundreds of concurrent client tickets
Handling hardware procurement, resale margins, and vendor rebates alongside labor billing
Automating contract renewals and ensuring accurate billing for variable-consumption managed services agreements
Integrating RMM (remote monitoring and management) and ticketing tools with financial systems to eliminate manual data entry
Recognizing revenue correctly under ASC 606 for bundled managed services and implementation projects
Scaling operations without proportionally increasing back-office headcount as the client base grows
Best IT Services & Managed Services ERP for SMBs
Recommended for companies with $10M–$250M revenue and 10–200 employees.
ConnectWise Manage
mid-rangeIndustry-leading PSA for MSPs with integrated ticketing, time tracking, billing, and agreements management. Deep ecosystem of integrations with RMM and vendor tools widely used in the MSP market.
Best for: MSPs seeking the most MSP-native PSA with broadest integrations
Autotask PSA (Datto)
mid-rangeCloud-native PSA purpose-built for MSPs with strong SLA management, contract billing automation, and tight integration with Datto RMM and backup products.
Best for: MSPs in the Datto ecosystem needing RMM-to-PSA continuity
NetSuite
mid-rangeFull-suite cloud ERP that handles both managed services recurring revenue and project-based IT work with strong financials, inventory for hardware resale, and multi-entity support.
Best for: IT services firms with significant product resale revenue alongside managed services
Deltek Vantagepoint
mid-rangeStrong project accounting and resource management for IT consultancies delivering large-scale implementation and systems integration engagements.
Best for: IT consultancies and systems integrators with complex project structures
Sage Intacct
mid-rangeCloud financial platform with strong recurring revenue management, project accounting, and multi-entity consolidation for IT services firms with multiple business units.
Best for: IT services firms prioritizing financial accuracy and audit-ready reporting
HaloPSA
budgetModern PSA platform for MSPs and IT support businesses with ITIL-aligned service desk, comprehensive billing automation, and flexible integration framework at a competitive price point.
Best for: Growing MSPs seeking a modern alternative to ConnectWise at lower cost
Best IT Services & Managed Services ERP for Enterprise
Recommended for companies with $250M+ revenue and complex multi-site operations.
SAP S/4HANA
enterpriseEnterprise-grade ERP with professional services capabilities for large IT services organizations managing global delivery centers, complex subcontracting arrangements, and multi-country operations.
Best for: Large IT services firms and global systems integrators with multi-country delivery models
Oracle ERP Cloud
enterpriseComprehensive cloud ERP suite supporting complex revenue recognition, project financial management, and global procurement for large IT services and outsourcing companies.
Best for: Enterprise IT outsourcing and services firms with complex contract portfolios
Microsoft Dynamics 365
enterpriseFull Microsoft ecosystem integration with Project Operations, Field Service, and Customer Service modules covering the end-to-end IT services delivery lifecycle.
Best for: IT services firms standardized on Microsoft technology stack seeking native integration
Unit4 ERP
enterprisePeople-centric ERP with strong resource management, project financials, and self-service capabilities designed for professional services organizations with large distributed workforces.
Best for: Mid-to-large IT services organizations focused on resource optimization and project profitability
Essential ERP Capabilities for IT Services & Managed Services
Managed services contract billing with recurring revenue automation and consumption-based pricing
SLA tracking and breach alerting integrated with financial penalty calculations
Integrated service desk ticketing with time capture feeding directly into billing
Hardware and software procurement management with vendor rebate tracking
Project-based billing for implementation and professional services engagements
Technician utilization and scheduling across break-fix, managed, and project work
Contract renewal management with automated notification and upsell tracking
Multi-tier revenue recognition for bundled managed services contracts under ASC 606
RMM and monitoring tool integration for automated ticket and cost data flow
Client profitability analysis at the account and service line level
IT Services & Managed Services ERP Cost Ranges
SMB
$10,000 – $50,000
5–50 users
Implementation: $5,000 – $40,000
Mid-Market
$50,000 – $250,000
50–200 users
Implementation: $50,000 – $300,000
Enterprise
$250,000 – $1,500,000+
200–1,500+ users
Implementation: $400,000 – $2,000,000+
Implementation Considerations
Map all billing models — managed services agreements, break-fix, project T&M, and hardware resale — before selecting a platform as most PSA systems handle some models better than others
Plan RMM and ticketing system integrations early; manual entry between PSA and monitoring tools is the top productivity drain for MSP operations teams
Define SLA tiers and escalation workflows in detail before configuration to ensure automated breach tracking and billing adjustments work correctly from day one
Involve service delivery managers and lead technicians in requirements gathering — back-office-only implementations routinely miss field-level operational needs
Build a hardware inventory and procurement workflow before go-live to capture resale margins that frequently account for 20–40% of total MSP revenue
Frequently Asked Questions
What is the best PSA for managed service providers?
ConnectWise Manage and Autotask PSA (Datto) are the two dominant PSA platforms in the MSP market, with deep RMM integrations and MSP-native billing workflows. HaloPSA is a strong modern alternative gaining traction with its flexible architecture and lower cost. The best choice depends on your existing RMM stack, vendor relationships, and preference for ConnectWise's ecosystem versus Datto's vertical integration.
Can ERP systems handle both MSP recurring revenue and project billing?
Yes, but the maturity of recurring revenue handling varies significantly. NetSuite, Sage Intacct, and Microsoft Dynamics 365 all support recurring revenue recognition alongside project billing. However, MSP-specific features like SLA management, RMM integration, and agreement-based billing are much stronger in purpose-built PSA platforms like ConnectWise. Many mid-size MSPs run a PSA for operations and a separate accounting platform for financials.
How do IT services ERP systems handle hardware resale?
ERP systems for IT services manage hardware through an integrated inventory and procurement module. Purchase orders are raised against vendor quotes, inventory is received and valued, and hardware is either sold directly to clients or deployed as part of a managed services contract. Vendor rebate programs — common with distributors like Ingram Micro and TD SYNNEX — can be tracked in NetSuite and SAP S/4HANA to ensure rebate accruals flow through the P&L correctly.
How should IT services firms handle revenue recognition for managed services?
Under ASC 606, managed services contracts are typically a series of distinct service periods recognized ratably over the contract term. However, contracts that bundle upfront setup fees, hardware, and ongoing support may have multiple performance obligations requiring allocation of the transaction price. ERP systems with native ASC 606 engines — such as NetSuite, Sage Intacct Advanced, and Oracle ERP Cloud — automate this allocation and generate the contract asset/liability disclosures required for audit.
What integrations are most important for IT services PSA/ERP?
The highest-priority integrations for IT services firms are: (1) RMM tools (ConnectWise Automate, Datto RMM, NinjaRMM) for automated ticket creation and device data, (2) vendor distributors (Ingram Micro, TD SYNNEX) for automated procurement and rebate tracking, (3) Microsoft 365 and Azure for identity management and licensing billing, and (4) accounting systems (QuickBooks, Xero, or full ERP) for financial reporting.
How do SLA commitments affect billing in managed services ERP?
SLA-aware billing automates credits or penalties when response and resolution time thresholds are breached. PSA platforms like ConnectWise and Autotask track SLA compliance at the ticket level and can automatically generate credit memos or flag accounts for manual review when SLA penalties apply. This eliminates the manual audit of SLA performance that plagues MSPs using spreadsheets for contract management.
What metrics should IT services ERP dashboards track?
Key operational metrics for IT services firms include: billable utilization rate (target 70–80%), average ticket resolution time vs. SLA, gross margin by client and service line, managed services revenue as a percentage of total revenue (higher is better for valuation), hardware resale margin, and monthly recurring revenue (MRR) growth. ERP and PSA platforms should surface all of these on role-specific dashboards for service managers and finance.
When should an MSP move from PSA-only to a full ERP?
MSPs typically outgrow PSA-only operations when they exceed $5–10M in annual revenue, have multiple legal entities, carry significant hardware inventory, or require multi-currency billing for international clients. At this point, the gap between the PSA and the accounting system creates reconciliation overhead and reporting limitations that a unified ERP like NetSuite or Sage Intacct resolves.
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