Managed IT Services To Be ‘USD 329 Bn’ Market by 2025
Managed IT Services has become the need of the hour for almost every organization in the current day.
This has eventually shifted the organizational focus towards innovation and core business objectives, as Managed Service Providers (MSPs) take care of IT aspects.
Managed IT Service Providers have taken off the majority of the IT burden related to infrastructure management, communication and collaboration, managing security, networks and datacenters, among other aspects of IT management.
Given these offerings, Managed IT Services have become imperative for most organizations and are growing in popularity with each passing day.
As per the market estimates, the global managed services market is estimated to grow from USD 223 billion in 2020 to USD 329.1 billion by 2025, at a CAGR of 8.1 percent.
Lack of skilled IT professionals, lower IT budgets and cost reduction are among the major factors driving the demand for managed IT services.
Moreover, the increasing demand for cloud adoption and automation among SMBs is expected to add to the managed services demand over the forecast period (2020-25).
The global managed IT services, by segments, including managed security services, managed IT infrastructure, managed data centers, managed collaboration and communication services and managed information services.
Managed Data Centers and IT Infrastructure Services
Lack of skilled professionals is pushing most CIOs to shift their focus onto managed services, as that would alleviate their IT maintenance burden. As the managed services provider takes care of datacenter and other infrastructure maintenance, CIOs will get more scope to concentrate on core business objectives. Moreover, MSPs also provide cost-effective solutions along with the security advantage.
More Scope Among Large Enterprises
Large enterprises offer more scope for managed services because of their inability to tackle the emerging cyberthreats, which would require skilled professionals.
So, managed services hold huge demand among large enterprises for a wide range of its service offerings.
Small and Mid-size Enterprises (SMEs) are adopting managed services at a faster rate as compared to large enterprises.
On-premise Services Demand
Most companies with legacy infrastructure are eagerly waiting for transforming their infrastructure with new and emerging models. This gives a way for on-premise solutions. Given the possibility of MSP services at the client location, the on-premise-based managed services hold a promising future.
BFSI Sector Holds High Potential
Banking, Finance Services and Insurance sector has a lot to do about IT network infrastructure and security management. Given the sensitive nature of the data and information they hold and exchange across networks and over the cloud, managed services is definitely of high significance for the BFSI sector.
Thus, BFSI offers huge opportunities for the global managed IT services market for infrastructure management, next-level connectivity and more.
North America Leads By Region
By region, the global managed IT Services market is categorized into North America, Asia-Pacific, Europe, MEA and Latin America.
However, North America is going to lead the demand for managed IT services over the forecast period due to increasing usage of recurring revenue model in the region.