Managed Services Market

Managed Services on the Rise: Top Drivers for Market Growth

In terms of revenue, the managed services market is estimated to rise from USD 275.5 billion in 2023 to USD 372.6 billion by 2028, with a compound yearly growth rate (CAGR) of 6.2% throughout the forecast period. Managed services are defined as outsourcing specific company processes or functions to third-party vendors. These providers, known as MSPs, are in charge of administering, monitoring, and optimising these services, allowing organisations to focus on their core skills. Managed services cover a wide range of areas, including IT infrastructure management, cybersecurity, cloud computing, network monitoring, data storage, and system management.

Here are the main growth drivers for the Managed Services Market:

  • Cost reduction and efficiency gains
  • Increased focus on core business activities
  • Growing IT complexity and skills gap
  • Heightened cybersecurity concerns
  • Compliance requirements for data security
  • Lack of in-house IT expertise

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Cost Reduction and Efficiency: Businesses are increasingly seeking ways to reduce IT costs and improve operational efficiency. Managed services offer a cost-effective way to access expertise and resources without having to invest in building an in-house IT team.

Focus on Core Business: Businesses are realizing the value of focusing on their core competencies and outsourcing non-critical IT functions. Managed services allow them to do this while still ensuring their IT infrastructure is well-maintained and secure.

Increasing IT Complexity:  The growing complexity of IT infrastructure, with cloud adoption, evolving security threats, and the proliferation of devices, is driving demand for managed services. Businesses often lack the expertise or resources to manage these complexities effectively.

Security Concerns:  Cybersecurity threats are a major concern for businesses of all sizes. Managed service providers offer comprehensive security solutions, including threat detection, monitoring, and incident response, which can be a significant advantage for businesses.

Compliance Requirements:  Many industries have strict compliance regulations regarding data security and privacy. Managed service providers can help businesses meet these requirements by providing secure IT infrastructure and data management solutions.

Lack of In-House IT Expertise:  Many businesses, especially small and medium-sized businesses, simply don't have the in-house expertise to manage their IT infrastructure effectively. Managed services provide them with access to a team of experienced IT professionals.

Managed Services Market Share - Global Industry Landscape

Some of the leading companies in the Managed Services industry include:

  • Fujitsu (Japan)
  • Accenture (Ireland)
  • Atos (France)
  • Cisco (US)

Fujitsu (Japan)

  • Market Share: Fujitsu is a leading global IT services provider with a strong presence in Asia, Europe, and the Americas. It ranks among the top IT services companies worldwide.
  • Key Offerings:
    • IT Services and Consulting: Comprehensive IT solutions including system integration, infrastructure services, and business consulting.
    • Cloud Services: Public, private, and hybrid cloud solutions, including cloud migration and management.
    • Cybersecurity: Advanced security services and solutions for protecting data and IT infrastructure.
    • Artificial Intelligence: AI and machine learning solutions for various industries, enhancing business processes and decision-making.
    • Data Centers: High-performance data center services with global reach.
    • Digital Transformation: Solutions to help businesses undergo digital transformation, improving efficiency and innovation.

Accenture (Ireland)

  • Market Share: Accenture is one of the largest global professional services firms, providing a wide range of services and solutions in strategy, consulting, digital, technology, and operations.
  • Key Offerings:
    • Consulting Services: Strategy, digital, and management consulting to drive business performance.
    • Technology Services: IT solutions, systems integration, and application development and management.
    • Digital Services: Digital transformation, customer experience, and digital marketing solutions.
    • Operations: Business process outsourcing (BPO) and managed services to streamline operations.
    • Cloud Services: Cloud strategy, migration, and management, leveraging partnerships with leading cloud providers.
    • Cybersecurity: Comprehensive security services including risk management, threat intelligence, and security operations.

Atos (France)

  • Market Share: Atos is a global leader in digital transformation, with a strong presence in Europe and significant operations worldwide. It is one of the top IT service providers globally.
  • Key Offerings:
    • Managed Services: End-to-end IT management and outsourcing services.
    • Cloud and Data Center Services: Cloud infrastructure, hybrid cloud solutions, and data center services.
    • Big Data and Analytics: Solutions for data analytics, business intelligence, and data management.
    • Cybersecurity Services: Advanced security solutions to protect digital assets and ensure compliance.
    • Digital Workplace: Solutions to enhance productivity and collaboration through digital tools and environments.
    • High-Performance Computing: Advanced computing solutions for complex simulations and data analysis.

Cisco (US)

  • Market Share: Cisco is a global leader in networking and IT infrastructure, with a dominant market position in enterprise networking and cybersecurity.
  • Key Offerings:
    • Networking Solutions: Routers, switches, and wireless solutions for enterprise and service provider networks.
    • Cybersecurity: Comprehensive security solutions including firewalls, threat intelligence, and secure access.
    • Collaboration Tools: Unified communications, video conferencing, and collaboration platforms like Cisco Webex.
    • Data Center Solutions: Data center networking, storage, and computing solutions.
    • Cloud Solutions: Cloud networking and security, as well as solutions for managing multi-cloud environments.
    • IoT Solutions: Internet of Things (IoT) platforms and solutions for various industries, enhancing connectivity and data insights.

Related Reports:

Managed Services Market by Service Type (Managed Security Service, Managed Network Service, and Managed IT Infrastructure and Data Center Service), Deployment Type (On-premises and Cloud) Vertical and Region - Global Forecast to 2028

Managed Services Market Size,  Share & Growth Report
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