Global managed services market is valued at USD 179.33 billion in 2021, and it is anticipated to attain a value of USD 393.72 billion by 2028, at a CAGR of 11.82 % over the forecast period 2022–2028.
Westford, USA, July 07, 2022 (GLOBE NEWSWIRE) -- The managed services market is growing at a rapid pace as organizations are looking for new ways to optimize their IT operations and improve efficiency. Managed services providers (MSPs) offer a comprehensive suite of IT services that can be customized to meet the specific needs of an organization. MSPs typically provide 24/7 monitoring and management of an organization's IT infrastructure, including servers, networks, and storage systems.
Organizations are turning to managed services for a number of reasons, including the need to reduce costs, improve operational efficiencies, and free up internal resources to focus on more strategic initiatives. In many cases, managed services can provide a higher level of service than an organization could achieve on its own. For example, MSPs often have access to best-in-class tools and processes that they can leverage on behalf of their clients. In addition, MSPs typically have highly skilled staff who are experts in managing complex IT infrastructures.
The managed services market is expected to continue to grow at a rapid pace in the coming years as more organizations look to outsource their IT operations. This growth will be driven by factors such as the increasing complexity of IT environments, the need for organizations to do more The MSP model has been growing in popularity as businesses look for ways to improve efficiency and control costs. As businesses become more reliant on technology, they need to be able to trust that their systems will be up and running when they need them. Managed services give businesses that peace of mind, knowing that there is someone who is proactively monitoring and managing their IT infrastructure.
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More than 60% of Organizations to Stay Dependent on Managed Services Market
Organizations across the globe have been reconsidering their IT strategies in recent years in order to stay ahead of the curve and remain competitive. One of the key areas that has seen a lot of change is the way organizations procure and manage their IT services. In particular, there has been a shift away from traditional in-house models towards more outsourced and managed service models. Most of the organizations in the global managed services market are opting for the services to minimize their IT infrastructure expenditure and focus more on their core business activities. Moreover, with the help of these services, enterprises can achieve faster deployment of new applications and technologies, which subsequently enhances their agility and competitiveness. The growing trend of Bring Your Own Device (BYOD) in organizations is also fueling the demand for managed services market as these services help in managing and securing BYOD devices effectively. As a result, organizations are increasingly turning to managed service providers (MSPs) to manage their IT infrastructure and operations due to the benefits they offer, such as improved efficiency and reduced costs. In fact, more than 60% of organizations are expected to be dependent on MSPs by 2025.
More than 60% of organizations will stay dependent on managed services, according to a new study by Managed Services Provider (MSP) Standard. The study, which polled 1,000 MSPs from around the world, found that 62% of respondents believe their clients will continue to need some form of managed services in the future. The study also found that the majority of MSPs (69%) in the global managed services market are currently offering or plan to offer cloud services within the next 12 months. This is in line with other studies that have predicted strong growth for the cloud market in the coming years. Interestingly, when asked about the biggest challenges they face when selling cloud services, MSPs cited price competition (30%), lack of understanding from potential customers (23%), and getting locked into a single vendor (18%). These results suggest that MSPs are aware of the obstacles they need to overcome in order to succeed in the cloud market in order to expand their market share and generate more market revenue.
The dependence on MSPs is further increased by the trend of digital transformation, which is resulting in the need for more complex IT infrastructure and operations. As businesses strive to become more agile and efficient, they are adopting new technologies such as cloud computing, big data, and artificial intelligence (AI). However, managing these new technologies can be challenging for organizations in the managed services market that do not have the in-house expertise or resources. Therefore, they are turning to MSPs that can provide the necessary skills and experience.
Growing Penetration of IoT Devices to Add Fuel to Demand for Managed Services
As the Internet of Things (IoT) continues to grow and expand, so too does the demand for managed services. More and more businesses and organizations are turning to managed service providers (MSPs) to help them overcome the challenges associated with managing an ever-growing network of connected devices. Here are four ways that the growing penetration of IoT devices is adding fuel to the demand for managed services market:
• The sheer volume of IoT devices is increasing the complexity of networks.
The average business now has more than 100 connected devices on its network, and that number is only expected to increase in the coming years. This increase in device density is putting strain on traditional networking infrastructure and making it difficult for businesses to keep up with management and security needs. As a result, many are turning to MSPs for help in designing, deploying, and managing their IoT networks.
• The variety of IoT devices is creating new challenges.
Not all IoT devices were created equal—in fact, there is a wide range of different types of devices being used for different purposes. This diversity creates new challenges for businesses when it comes to managing these devices effectively. Wherein, MSPs in the managed services market can help by providing expertise in dealing with the different types of devices and ensuring that they are all properly managed and secured.
• The data generated by IoT devices is creating new opportunities—and challenges.
IoT devices generate a huge amount of data, and this data can be extremely valuable to businesses. However, it can also be overwhelming, especially for businesses that lack the resources to effectively manage and analyze it. Managed services market can help by providing the necessary tools and expertise to help businesses make sense of the data and use it to improve their operations.
• The need for security is increasing.
As more and more devices are connected to the internet, the risk of cyberattacks increases. IoT devices are often targeted by hackers because they often have weak security protocols. This creates a need for improved security measures, which MSPs can provide.
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Need for Data security and Compliance to Flourish Managed Services Market
The demand for Managed Services is increasing as the need for Data security and government compliance is growing. The number of organizations that are required to comply with government regulations is increasing, and the complexity of those regulations is also increasing. Additionally, the amount of data that organizations must protect is growing exponentially. As a result, many organizations are turning to Managed Service Providers (MSPs) to help them meet these challenges.
MSPs provide a variety of services that can help organizations with data security and compliance, including managed firewalls, intrusion detection and prevention systems, vulnerability management, and more. They can also help with meeting other IT needs, such as managing email servers, web servers, and databases. In many cases, providers in the managed services market can provide these services at a lower cost than if the organization were to manage them itself.
There are several reasons why the managed services market is observing high demand for such services. One reason is that the costs of non-compliance with government regulations can be very high. Organizations can be fined or even lose their license to operate if they do not comply with certain regulations. Additionally, data breaches can result in significant financial losses for an organization, as well as damage its reputation.
Data security and compliance are essential for any organization that wants to protect its information assets and maintain a good reputation. Compliance with data privacy laws and industry regulations is not only important for legal reasons, but also helps to build trust with customers and other stakeholders. Managing these risks can be complex and resource-intensive, making it difficult for organizations to do it all on their own. This is where managed services come in.
Enterprises are Facing Challenges to Stay Up to Date to Latest technology to Bolster Managed Services Market
There is no doubt that enterprises are constantly facing challenges to stay up to date with the latest technology. This is especially true when it comes to managed services, where the demand is constantly changing and evolving. In order to stay ahead of the curve, enterprises need to be proactive in their approach and keep up with the latest trends. One of the biggest challenges that enterprises face is keeping up with the ever-changing landscape of managed services. The demand for these services in the global managed services market is constantly shifting, and new technologies are constantly being developed. As a result, enterprises need to be able to adapt quickly in order to keep up with the latest trends. This can be a challenge, as it requires a lot of resources and knowledge. Additionally, it can be difficult to find the right managed service provider that can meet all of the needs.
Another challenge that enterprises face is finding qualified staff who are able to work with the latest technologies. With the rapid pace of change in this field, it can be difficult to find employees who have the skills and knowledge necessary to work with new systems and technologies. This can lead to delays in projects or even downtime for any business.
Technology is always changing, and businesses have to change with it to stay competitive. The problem is that technology changes so rapidly that it can be difficult for enterprises to keep up. In addition, enterprise systems are often complex and may take years to implement. As a result, many enterprises find themselves using outdated technologies that cannot keep up with the demands of their businesses. One way to do this is by using managed services that can be implemented quickly and easily, which is one of the key factors supporting the growth of the managed services market. Another way is to partner with companies that specialize in providing the latest technology solutions.
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With Rapid Digitalization, Organizations are Putting More Efforts to Provide Better customer management experience
Today, organizations are constantly looking for ways to improve customer management and provide a better customer experience. With the rapid digitalization of business, organizations are putting more efforts into providing customers with a better online experience. By utilizing technology, such as artificial intelligence (AI) and chatbots, businesses can automate customer support and increase efficiency. In addition, social media platforms and CRM software allow businesses to easily manage customer interactions across multiple channels.
Digital transformation, play a role in the development of managed services market, is changing how customers interact with businesses. Customers now expect companies to engage with them on their preferred channels, whether that’s through social media, chatbots, or other means. As such, it’s become increasingly important for businesses to focus on providing a consistent and personalized customer experience across all touchpoints. In order to keep up with the competition and provide the best possible customer experience, businesses need to invest in digital tools and technologies that will help them meet the ever-changing needs of their customers. By doing so, they can not only improve customer satisfaction but also boost loyalty and retention rates.
Rapid digitalization is resulting in organizations putting more efforts into providing better customer management experiences through managed services market. This is because customers are now interacting with companies increasingly through digital channels such as websites, social media, and mobile apps. As a result, they expect a consistently high level of service quality and convenience regardless of the channel they use to engage with the company.
Organizations that provide great customer management experiences tend to have lower customer churn rates, higher customer satisfaction levels, and stronger brand loyalty. Therefore, it makes good business sense for companies to invest in improving their customer management processes. Wherein, players engaged in Managed services market become valuable partner in this effort by helping companies optimize their customer engagement processes across all touchpoints.
Artificial intelligence and Machine learning are Becoming Go to To Option in Managed Services
Artificial intelligence and machine learning are becoming increasingly important in the world of managed services market. This is because these technologies have the potential to greatly improve the efficiency and effectiveness of managed services providers. By automating tasks that are currently performed manually, or by providing better insights into customer data, AI and machine learning can help managed service providers to improve their overall performance. In addition, these technologies can also help to reduce costs by reducing the need for human labor. As such, it is not surprising that many managed service providers are beginning to invest in artificial intelligence and machine learning technologies.
Machine learning can help to automate the management of complex systems by identifying patterns and correlations in data sets, and then using this information to make predictions or recommendations about how the system should be configured or operated. This can save significant amounts of time and effort for players active in managed services market, and allow them to focus on other tasks. In fact, a recent study found that AI/ML is one of the top priorities for service providers in 2022. The report goes on to say that "by 2028, 57% of service providers will use AI/ML to drive at least 30% operational improvement."
So what exactly is driving this trend in the global managed services market? There are a few factors at play. First, the increasing availability of data is making it possible to train neural networks and other AI/ML algorithms with more accuracy than ever before. Second, Moore's Law continues to hold true, meaning that computing power and storage capacity continue to increase while costs decrease. This makes it possible to run more complex AI/ML applications without breaking the bank. Finally, there is a growing recognition among businesses of all sizes that AI/ML can be used to solve a wide range of problems, from customer support to cybersecurity. As service providers look to capitalize on this opportunity, they are starting to offer more and more AI/ML-based services. These include everything from chatbots and virtual assistants for customer support to predictive analytics.
Top Players in Global Managed Services Market
Fujitsu Ltd. (Japan)
NOKIA Corporation (Finland)
Deutsche Telekom AG (Germany)
Verizon Communication (US)
Rackspace Inc. (US)
Citrix Systems Inc. (US)
Telefonaktiebolaget LM Ericsson (Sweden)
Atos SE (France)
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