@kelly said in How Can the FTE Model Compete with the MSP Model?:

Maybe not directly for the company, but the MSP has to recoup the costs of time and travel somehow, and that will affect rates if you're going to stay profitable.

That is very true, no denying that. But you can build those costs in. There are certainly costs involved, but there are savings too. You have to look at the whole picture.

In this example, we have housing costs about 20% lower than they do, our fuel is way cheaper ($.25 I bet), and our Internet is a fraction of the cost (about 10% the cost, I kid you not.) Going local to them would require us to raise prices, traveling to them is trivial.