The global managed services market size is expected to reach USD 376.13 billion by 2025, according to a new study conducted by Grand View Research, Inc. It is anticipated to expand at a CAGR of 11.7% during the forecast period. Growing dependence of enterprises on IT assets for driving their business productivity coupled with the need for specialized Managed Service Providers (MSPs) and cloud-based managed services is expected to drive the growth. Growing need to reduce downtime of systems is expected to further fuel the market growth.
The MSPs provide migration assistance to organizations moving their services from private to public cloud. They also offer differentiated cloud managed services which help enterprises in their decision-making processes. Implementation of these services considerably reduces the IT operational costs and helps improve organizational flexibility and efficiency.
Increasing IT expenditure across the globe is anticipated to create growth opportunities for the managed services market over the forecast period. These services transform IT systems, optimize recurrent in-house IT costs, and automate business processes. This in turn, allows organizations to effectively achieve their business objectives.
Emerging trends such as cloud computing, Internet of Things (IoT), big data, Software as a Service (SaaS), Artificial Intelligence (AI), machine learning, and data security applications are expected to fuel the adoption in end use industries, such as manufacturing, healthcare, and retail, among others. Furthermore, enterprises are beginning to make a switch to managed services to streamline their business processes by outsourcing various IT operations.
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Further key findings from the report suggest:
Adoption of managed security services in end use industries such as IT and telecom, media and entertainment, and retail is expected to witness a significant rise over the forecast period, on account of the various benefits such as security monitoring and management, email threat management, and restoral management and backups, among others
Increasing emphasis on incorporating BPO as a part of business strategies to focus on their core competencies and thereby increase business profitability is expected to drive growth of the BPO segment
A number of organizations are beginning to adopt the on premise deployment as it does not require an internet connection and allows easy customization of software as per the business process requirements of the clients
Small and Medium Enterprises (SMEs) are increasingly using these services to make use of its numerous advantages for instance, controlled IT costs, increased efficiency and competitiveness, and reduced risk, among others
Healthcare sector is anticipated to register increased demand to efficiently manage and organize the large volumes of patient data
North America is expected to maintain its dominance in the managed services market over the forecast period and is anticipated to reach USD 120.44 billion by 2025, owing to the high concentration of Multinational Companies (MNCs) in the region
Key market participants include Accenture PLC; Fujitsu Limited; IBM Corporation; Cisco Systems, Inc.; Ericsson; Lenovo Group Limited; and DXC Technology Company among others