Europe Managed Services Market

The managed services market in Europe was valued at USD 95.60 billion in 2025 and is projected to reach USD 123.06 billion by 2030, at a CAGR of 5.2%. This growth reflects the widespread adoption of enterprise outsourcing in complex IT environments. European enterprises are increasingly outsourcing IT operations to improve cost transparency and operational control across their diversified technology portfolios. Managed services also help meet regulatory requirements that vary significantly across European Union member states. Demand remains resilient amid persistent cybersecurity threats and ongoing shortages of skilled IT professionals across Europe. These factors position the managed services market in Europe as a stable, long-term investment segment for service providers.

The managed services market in Europe benefits from strong demand across sectors such as banking, manufacturing, healthcare, and the public sector. Organizations increasingly adopt managed services to support hybrid cloud strategies and maintain consistent service levels. Service providers differentiate themselves through compliance expertise aligned with GDPR requirements and country-specific data sovereignty regulations. Regulatory complexity across Europe reinforces long-term outsourcing relationships between enterprises and trusted managed services providers. Cost pressures across Europe also motivate enterprises to externalize routine IT operations through managed services provider contracts.

In November 2025, Kyndryl (US) agreed to acquire Solvinity, a Dutch provider of secure managed cloud platforms and services. The deal expands Kyndryl’s sovereign and hybrid cloud capabilities by combining its advisory and managed services with Solvinity’s security-focused offerings to modernize, secure, and automate highly sensitive, compliance-driven workloads.

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IBM

IBM is a global technology and consulting company known for leadership in hybrid cloud, AI, and enterprise infrastructure. It operates one of the world’s most mature service portfolios built on automation, analytics, and secure digital operations. In the managed services market, IBM delivers a highly integrated suite spanning hybrid-cloud operations, managed security, automation-driven infrastructure management, and AI-enabled service delivery, delivered through platforms such as IBM Cloud, Red Hat OpenShift, and IBM Watson. Procurement teams view IBM as a strategic partner for operating large, complex, and compliance-intensive environments that require high reliability and governance. Its strengths include standardized service frameworks, autonomous operations, and deep expertise across financial services, healthcare, manufacturing, and public-sector workloads.

ACCENTURE

Accenture is a global professional services firm specializing in consulting, technology, and outsourcing, operating in more than 120 countries. It is recognized for delivering large-scale digital transformations and technology-enabled operational models. In the managed services market, Accenture offers comprehensive, industry-specific capabilities spanning cloud operations, application management, cybersecurity, data platforms, intelligent automation, and business process services. Its managed services framework emphasizes outcome-based contracting, continuous modernization, and scalable multiservice integration—making it a preferred partner for enterprises navigating hybrid-cloud environments and complex vendor ecosystems. Procurement teams benefit from Accenture’s strong governance models, global delivery centers, and an automation-led approach that reduces operational effort while improving service predictability.

Market Ranking

In 2024, the managed services market in Europe remains moderately consolidated, with global system integrators and large regional providers dominating enterprise contracts. The top five managed services providers collectively account for approximately 45% to 55% of total market revenue. Leading participants include Accenture, IBM, Capgemini, Atos, and a major European telecommunications-based services provider group. These companies leverage extensive delivery networks to support multinational enterprises across multiple European countries. Their competitive positions are strengthened by long-term contracts focused on delivering cybersecurity monitoring services. Regional providers compete by offering localized language support and country-specific regulatory expertise to mid-sized enterprises. Market concentration is expected to remain stable as consolidation progresses gradually through selective acquisitions across Europe. High switching costs and complex compliance requirements limit rapid customer movement between managed services providers. Enterprises increasingly favor providers with proven experience supporting cross-border operations and pan-European service delivery models. These preferences reinforce the market positions of large providers, which can maintain consistent standards across jurisdictions.

Related Reports:

Europe Managed Services Market by Service Type (IT Infrastructure & Data Center Services, Network Services, Security Services, Communication & Collaboration Services, Mobility Services, and Information Services) – Forecast to 2030

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