The managed companies market is anticipated to develop from USD 180.5 billion in 2018 to USD 282.zero billion by 2023, at a CAGR of 9.3% in the course of the forecast interval.
The international managed companies market is anticipated to achieve USD ~245 billion by the tip of 2022 with 11% CAGR throughout forecast interval 2016-2022.
Businesses today are more dependent than ever on IT for their various operational and marketing requirements, leading to the establishments of IT departments. Often, there are an overwhelming number of customer requests in addition to infrastructure problems, internal changes happening and what not. For example – your IT team is flooded with raised tickets, and suddenly your network goes down; you may be faced with a service outage simply because they won’t be able to take care of all the issues simultaneously. For small businesses, it can be pretty bad, since the cost of hiring an extensive IT team can be staggering.
Managed Services Providers Come to the Rescue
They take up the responsibility of ensuring round-the-clock functionality of the IT infrastructure and services of an organization, allowing them to:
- Free up their resources for core competencies; The MSP will act as a supplement to your IT team, and this will help the business grow.
- Remain within budget; by partnering with an MSP, businesses can get access to new technology, vast infrastructure, and expertise for a fee, and not additional operational expenses.
- Enjoy improved security and compliance; with access to latest technology and infrastructure means a very high likelihood of adhering to the best practices in all processes. MSPs can help fix security issues, reduce downtime and help with disaster recovery.
- Employ a proactive approach to maintenance, rather than fix stuff when it is broken – thereby minimizing downtime.
Demand for Managed Services is on the Rise Because of
- Turbulent and uncertain macroeconomic environment
- High pressure to innovate and stay abreast of technological advancements simultaneously
- Necessity for meeting regulatory compliance requirements
- Absence of in-depth expertise internally
The dynamic market is in a constant state of transformation, with new opportunities and trends emerging all the time.
7 important Trends MSPs should Watch out for to Leverage Maximum Benefit
1. Enhanced Security from Cyber Attacks
The Managed IT Service provider has to be always alert and handle the security of the enterprise data. With cyber-attacks on the increase, they have to employ a ‘security first’ approach. We can expect MSPs making greater efforts to secure their clients’ service infrastructure, and having contingency plans in place to recover from any attack.
2. Cloud, Automation and Outsourcing
New platforms are increasingly being built on the cloud with a view to increasing customer engagement and to meet the requirements of businesses with regard to digital transformation. With heavy reliance on certain clouds, and occasional use of others is becoming the norm in a multi-cloud environment. Pricing may soon become consumption based if this keeps up.
With more processes being automated, it could lead to significant workload reduction; this is a factor that MSPs will look out for – and we can expect automation solutions in the offerings from them.
Outsourcing is also expected to impact the managed services market. With more companies outsourcing to MSPs, the providers are likely to curtail their reliance on conventional SLAs. We may well see the emergence of XLAs, that focus less on uptime, and more on employee and customer satisfaction.
3. Introduction of Telecom Service Providers and Independent Software Vendors
Telecom companies have already started leveraging their expertise in IT, experience with the subscription model, and their infrastructure to offer managed services, in addition to data services. As they already work on the subscription model
4. Emerging Technologies like IoT and Blockchain
It is expected that the hottest technologies in IT, like Blockchain and the Internet of Things, will create more, and better opportunities for managed services. This is because enterprises need deep expertise to implement these technologies. To stay relevant and competitive, MSPs will acquire the requisite skill sets for these, and other innovative technologies like AI, VR and AR.
5. Increased Mergers and Acquisitions
We are seeing an increase in mergers and acquisitions related to tools used by managed services providers for their business operations. This has been brought about by the need to have an integrated solution under one roof – so providers that lack certain solutions prefer to merge with or acquire agencies that provide those solutions. Today, a customer wants everything in one place – if you don’t give them what they want, they are going to go elsewhere – to another provider who can offer them all the solutions.
6. Growth in as-a-service Technologies
Industry experts predict a boom in as- a-service technologies like PaaS (platform) IaaS (Infrastructure), and SaaS (software). These technologies offer the benefits of being scalable, secure and cost effective. The MSPs have a significant role to play here, as they can help their customers manage these services easily.
7. Demand for Outcome Based Services
Today’s enterprise customers want result oriented outcomes with predefined standards – one of the major reasons why customers prefer to outsource to integrated solution service providers instead of single solution providers. MSPs will need to adapt their management style and the services they provide; they will need to have the capabilities of offering consultation services whose results can be measured.
Managed Service providers would do well to be tuned in to these trends and equip themselves to deal with them to gain competitive advantages.