Managed IT Services To Be ‘USD 329 Bn’ Market by 2025
Managed IT Services have become the need of the hour for almost every organization in the current day.
This has eventually shifted the organizational focus toward innovation and core business objectives, as Managed IT Service Providers (MSPs) take care of the IT aspects.
Managed IT Service Providers have taken off most of the IT burden related to infrastructure management, communication, and collaboration, managing security, networks, and data centers, among other aspects of the managed services market.
Given these offerings, Managed IT Services have become imperative for most organizations and are growing in popularity with each passing day.
The requirement for Managed IT Services has skyrocketed after the pandemic. While the factors for this increased appetite are various, the managed services market has become lucrative. The requirement for advanced solutions scaled high as the globe looked at digital solutions to continue with their lives. The scope for this managed services market is only set to grow as people increasingly use IT services. This factor, along with others, shall encourage the managed services market growth.
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 significant factors driving the demand for managed IT services. The managed IT service provider is generally the one who houses top-notch experts and provides the IT services their clients seek.
Moreover, the increasing demand for cloud adoption and automation among SMBs is expected to add to the managed IT services demand over the forecast period (2020-25).
The global managed IT services, by segments, include managed security services, managed IT infrastructure, managed data centers, collaboration and communication services, application managed services and managed information services.
Although software coders are readily available, finding the right talent is challenging and time-consuming. The latter shall become an adversary if you go down the rabbit hole of sourcing talent from every nook and corner. However, managed IT service provider is where your search stops as they provide managed services solutions. The increasing integration with cloud services is boosting the demand for managed IT services. Additionally, organizations handling large-scale projects required opt for DevOps or DevSecOps as iterative updates are required for such projects. Such companies outsource their requirements to managed IT service providers.
Managed Data Centers and IT Infrastructure Services
The need for more skilled professionals pushes most CIOs to shift their focus onto managed IT services, which would alleviate their IT maintenance burden. As the managed IT services provider takes care of data centers and other infrastructure maintenance, CIOs will get more scope to concentrate on core business objectives. Moreover, MSPs also provide cost-effective managed security services solutions, packing with the security advantage.
This security aspect is pertinent in today’s work, as data breaches frequently happen. While it hasn’t been ascertained yet, this might be an unwelcome effect of the pandemic. Be it external threats or insider attacks, managed security services have to be adopted by companies as threat actors are targeting almost every company that relies on IT solutions. So, embrace managed security services without any ado, for it is better to stay secure than leave your proprietary goods out in the wind.
More Scope Among Large Enterprises
Large enterprises offer more scope for managed IT services because of their inability to tackle emerging cyber threats, which would require skilled professionals.
So, managed security services hold huge demand among large enterprises for a wide range of service offerings.
While large enterprises shall flourish, that’s due to the increasing demand for services stemming from the unexpected reliance on IT services. This factor is directly boosting the requirement for managed cloud service providers. Buttressing this observation is the Fortune Business Insights report, which remarked that North American and Asia Pacific markets are booming along with European markets. The final market shall grow due to the adoption of cloud services, while Asia Pacific is predicted to have the highest growth due to increasing security investments and cloud adoption. However, the American market is a lucrative field for managed IT service providers, as the report observed that the high availability of managed IT service providers would foster growth. This observation underscores the significance and requirement that managed IT service providers command and shall continue to possess.
On-premise Services Demand
Most companies with legacy infrastructure eagerly await to transform their infrastructure with new and emerging models. This gives way to on-premise solutions. Given the possibility of managed IT services provider at the client location, the on-premise-based managed services hold a promising future.
Managed infrastructure services shall encompass these infrastructure requirements and provide the required support for the on-premise services demand. Clients seeking these services generally look for digital transformation services, hybrid cloud, public cloud, or other solutions. Managed cloud service providers are in demand as these services are being increasingly adopted. As time matures, the managed IT services market will boom further and generate more revenue.
BFSI Sector Holds High Potential
The Banking, Finance Services, and Insurance sectors shall come under managed services market and managed security services market. The latter market is no surprise, as BFSI is a very lucrative target for threat actors. Moreover, given the sensitive nature of the data and information they hold and exchange across networks and over the cloud, managed security services are highly significant for the BFSI sector.
Thus, BFSI offers enormous opportunities for the global managed IT services market for infrastructure management, next-level connectivity, and more.
The BFSI will require increasingly more services from managed security services providers. This is quite a predictable observation as threat actors increasingly commit crimes in the BFSI sector. Moreover, given the nature of criminals, the requirement for managed security services providers shall only increase and reign in more revenue.
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.
Along with the Asia Pacific region, North America will lead the demand for managed IT services over the forecast period due to the increasing usage of recurring revenue models in the region. Along with the increase in cloud adoption, security services from managed IT service providers would be solicited. Given the more than required choices of managed IT services providers, it is tough to finalize an MSP who would deliver the solutions without hampering the quality.
Stevie Award winner Veritis is where your search stops as we deliver solutions based on your unique requirements. So, reach out to us and walk away with the managed IT services solution which suits you best.
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