PUBLISHER: The Business Research Company | PRODUCT CODE: 1436457
PUBLISHER: The Business Research Company | PRODUCT CODE: 1436457
A managed service refers to a task handled by a third party, often in the context of business IT services. Outsourcing tasks to experts can reduce costs, improve service quality, and free up internal teams for business-specific work. Managed services are cost-effective, provide enhanced capabilities to end-users, allow teams to focus on core business functions, and enable in-house IT to concentrate on strategic IT initiatives.
In managed services, the main types of services include managed security services, managed network services, managed data center and IT infrastructure services, managed communication and collaboration services, managed mobility services, managed information services, and others. Managed security services focus on providing maintenance, audits, and security governance to enterprises. These services are available in cloud and on-premises deployment modes for organizations of varying sizes in sectors such as BFSI, IT and telecom, retail, manufacturing, government, healthcare, energy, utilities, and media.
The managed services market research report is one of a series of new reports from The Business Research Company that provides managed services market statistics, including managed services market industry global market size, regional shares, competitors with managed service market share, detailed managed services market segments, market trends and opportunities, and any further data you may need to thrive in the managed services market industry. This managed services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The managed services market size has grown strongly in recent years. It will grow from $275.42 billion in 2023 to $297.66 billion in 2024 at a compound annual growth rate (CAGR) of 8.1%. The growth during the historical period can be ascribed to the pursuit of cost efficiency, the demand for scalability, emphasis on core competencies, the complexity of IT environments, and the process of globalization.
The managed services market size is expected to see rapid growth in the next few years. It will grow to $449.79 billion in 2028 at a compound annual growth rate (CAGR) of 10.9%. The projected growth in the forecast period is driven by several factors, including the growing complexity of IT environments, the escalation of cyber threats, the management of remote workforces, the surge in cloud adoption, and an increased emphasis on business continuity. Notable trends anticipated during this period involve service personalization, leveraging data analytics for insights, an intensified focus on customer experience, effective compliance management, and the heightened demands for scalability.
The growing number of small and midsize businesses (SMBs) is expected to drive the expansion of the managed services market. SMBs, defined as organizations with fewer than 100 employees for small businesses and 100 to 999 employees for midsize enterprises, often rely on managed services to efficiently manage their IT infrastructure, cybersecurity, and network operations. By outsourcing these technical functions, SMBs can focus on their core business activities without the need for extensive in-house technical expertise. For example, the United States Small Business Administration reported that between March 2020 and March 2021, approximately 1.1 million new small businesses were established. This significant influx of new SMBs underscores the growing demand for managed services to support their operational needs, thereby driving the growth of the managed services market.
The increasing adoption of cloud services is expected to drive the growth of the managed services market in the future. Cloud services encompass a variety of computing resources and applications, including storage, processing power, software, and networking, delivered over the internet instead of being hosted on local servers or personal devices. These services support managed services by providing scalable infrastructure, enabling remote monitoring, and improving operational efficiency through centralized data storage and accessibility. For example, in a survey conducted by O'Reilly Media Inc. in 2021, approximately 90% of respondents worldwide stated that their companies were adopting cloud services. Of these respondents, 67% used a public cloud, 45% used a private cloud, and 55% used conventionally managed on-premises infrastructure. Additionally, nearly half (48%) of the respondents intended to migrate 50% or more of their applications to the cloud in the coming year, with 20% planning to move all of their applications to the cloud. Therefore, the increasing adoption of cloud services is a significant driver behind the growth of the managed services market.
The incorporation of the latest technologies into both existing and new business infrastructures is emerging as a significant trend in the managed services market. Leading companies in this sector are prioritizing the integration of new technologies to bolster their market position. For example, in October 2021, Zylo, a US-based SaaS management platform, introduced Zylo Managed Services. This offering allows businesses to engage skilled consultants who can swiftly establish top-notch SaaS management processes, thereby freeing up IT and procurement staff. Zylo offers two Managed Services packages: Zylo SaaS Manager and Zylo SaaS Negotiator. The former provides adept SaaS management consultants to help organizations establish and manage internal systems and procedures for their SaaS products, while the latter offers a skilled SaaS Negotiator to handle all aspects of SaaS contract and commercial discussions.
Major players in the managed services market are increasingly turning to strategic partnerships to expand their service portfolios, access specialized expertise, and provide comprehensive solutions to clients. Strategic partnerships involve companies leveraging each other's strengths and resources for mutual benefit and success. For example, in January 2022, BT Group PLC, a UK-based telecommunications company, joined forces with Rackspace Technology Inc., a US-based cloud computing company, to revolutionize cloud services for multinational customers. This partnership utilizes Rackspace's advanced solutions deployed in BT data centers to enhance cloud offerings by combining Rackspace's cloud management expertise with BT's robust network and security capabilities. The collaboration underscores a commitment to a hybrid cloud model, ensuring BT customers have access to top-tier public and private cloud services, as well as traditional hosted environments, all supported by the speed, security, and resilience of BT's global networks. This alliance is poised to elevate customer experiences and drive the evolution of BT's managed cloud services, with plans for future joint cloud initiatives already in development.
In January 2021, IBM, a US-based computer hardware company, acquired Taos Mountain Inc. for an undisclosed sum. This acquisition marks IBM's entry into the cloud professional services market and aims to bolster its presence in North America. Taos Mountain Inc., headquartered in the US, specializes in providing cloud-managed services.
Major companies operating in the managed services market report are Huawei Technologies Co.Ltd., Verizon Communications Inc., AT&T Inc., Accenture PLC, International Business Machines Corporation (IBM), Deloitte AG, Cisco Systems Inc., Fujitsu Global Limited, Tata Consultancy Services Limited, Ericsson AB, Nokia Corporation, BAE Systems PLC, Capgemini SE, NTT DATA Corporation, Cognizant Technology Solutions Corporation, CenturyLink Inc., Infosys Limited, DXC Technology Company, Atos SE (Societe Europeenne de Services Informatiques), Wipro Limited, Rackspace Technology Inc., GTT Communications Inc., HCL Technologies Limited, Microland Limited, Secureworks Inc., Happiest Minds Technologies Limited, Alert Logic Inc., Intact Technology Inc., Business Technology Partners LLP, Dimension Data Holdings Ltd
North America was the largest region in the managed services market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the managed services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the managed services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The managed services market includes revenues earned by entities by providing managed services that allow the end-users to focus on using a service rather than setting up the service. Managed services are provided by managed service providers that assist businesses in IT infrastructure and tasks, communication and collaboration, regular maintenance, management, and support of IT functions and processes on regular basis. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Managed Services Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on managed services market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for managed services ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The managed services market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.