The market was valued at USD 140.53 billion in 2016 and is expected to reach USD 268.25 billion by 2022, at a CAGR of 11.39% during the forecast period, from 2017 to 2022.
Managed services refer to the outsourcing of in–house functions to third-party service providers (Managed Service Providers – MSP). MSPs take the responsibility of continuously monitoring, managing and resolving the problems related to functions within a business. The changing businesses and increasing complexity of technology are driving many organizations to opt a team of experts (MSPs) for managing their elements, like infrastructure so that they can concentrate on their core business activities.
Minimal scalability, inflexible IT, and increasing costs hinder an organization’s ability to grow and innovate. Hence, there has been a growing trend to adopt emerging technologies to stay ahead of the competition. Managed services help in tackling all the issues by maintaining and enhancing the company’s IT environment. Further, managed services provide both, on-site and cloud, services and take the responsibility of maintaining the hardware and software of the companies, on their behalf. In addition, managed service providers (MSP) provide data backup and restoration services to the client, in the case of any unexpected incidents. Due to these advantages offered by managed services, hiring an MSP, effectively, improves the working of an organization with reduces costs. The cost of hiring skilled personnel for various purposes, apart from the core business, can be eliminated, thus, making the investment worthwhile, especially, for small- and medium-sized enterprises. The use of businesses to shift their IT financing model from capex to opex, in order to align their reduced costs’ need, is driving the market for managed services. However, concerns about data privacy and security might restrain the market’s growth, as the reliability of a managed service provider might not be vetted properly.
The global market for managed services is segmented into small & medium businesses and large enterprises, based on the verticals contributing to the market. Small & medium businesses are expected to have the highest CAGR of approximately16% during the forecast period, 2017–2022. The high growth rate is due to the benefits of adopting managed services, such as reduced IT costs and increased employee productivity, which are critical for small & medium businesses. The applications used for trimming costs and enhancing productivity are changing on a rapid scale in small and medium enterprises. This trend is resulting in an increased demand for Internet Protocol (IP) services in the market. Primary reasons for large enterprises adopting managed services is the reduction in operational costs and improvement in their global reach, with consistent and reliable services. Furthermore, the market is segmented, by type, into managed data center, managed mobility, managed security, managed communications, managed network, managed infrastructure, and managed information.
The global managed services market is segmented, geographically, into Europe, North America, Asia-Pacific, Latin America and the Middle East & Africa (MEA). North America is the largest revenue generating region, due to the early adoption of technology and the presence of IT giant data center MNCs in the region. Asia-Pacific is expected to register the highest growth rate during the forecast period, owing to the increasing technological adoption and outsourcing in emerging economies like India and China.
Major players in this market are:
Key Deliverables in the Study