The Global "Managed Services Market" is expected to grow at a high CAGR during the forecasting period (2022-2029).
The rise in the demand for outsourcing management functions from the cloud and Managed Service Providers (MSPs) by enterprises all around the world is anticipated to drive the adoption of managed services in the forecast period.
Managed services are the practice of outsourcing on a proactive basis, certain processes, and functions intended to improve operations and cut expenses. It is an alternative to the break or on-demand outsourcing model where the service provider performs on-demand services and bills the customer only for the work done.
The report covers all the major trends and drivers playing a vital role in the growth of the global Managed Services market. The global Managed Services market has been segmented based on Deployment, Type, End-User, and Region.
The global Managed Services market growth is primarily driven by increasing dependence on IT operations and new applications to improve business productivity. With several benefits managed services model helps business with risk reduction, fixed expenses for IT services, and most important to focus on the Core Business they cater to, by this, the enterprises are reducing the high cost that is incurred for maintaining IT services and also improving their business productivity by focusing on the core business.
The used cases success defines the power of the managed services. For instance, EIS, a wholly-owned subsidiary of Genuine Parts Company, faced a challenge with on-premises AS400 operating system was nearing end-of-life, prohibiting the full advantage of SAP’s newer technologies, and difficult to find skilled consulting resources to maintain. With the cloud service they were able to optimize and automate their SAP environments, eliminate their on-premises data center operations, create opportunity for additional business agility, and reduce their total cost of ownership. And the results included 20% savings in infrastructure costs, repurposed three full-time employees to other business needs and 96%-time savings with optimized reporting processes.
However, increasing the need for regulatory compliance across different regions and integration complexity are the major factor that will hinder the growth of the Managed Services market for the forecast period.
By Deployment, the global Managed Services market is segmented by On-premise and Cloud. On-premise has the dominant position in the streaming analytics market and is expected to retain its dominance in the forecasted period due to the adaptation of the technology by the large organizations which are concern about data security and data privacy. However, Cloud-based are also gaining the market due to the increasing demand by SME because of cost-effective and time-effective solutions. It is expected that the On-premise market will grow at a CAGR of ~XX% during the forecast period.
By Type, the global Managed Services market is segmented into managed data center, managed security, managed communications, managed network, managed infrastructure, and managed mobility. Managed Data Center has the dominant position in the Managed Services Type segment and is expected to retain its dominance in the forecasted period due to the rise in the data abruptly all around the world, which is enabling enterprises to have managed data centers to have data security and data privacy. Increasing cyber-attacks and the risk of data leaks are causing the market to grow in the following years.
By geography, the global Managed Services Market is segmented into North America, Asia-Pacific (APAC), Europe, South America, and the Middle East and Africa (MEA).
North America holds the largest market share for Managed Services Market, due to the presence of large multinational companies in the region. And the region is known for the high adoption of new technologies. The rise in the healthcare industry is the major driver for the managed service market in the region. For instance, Investors continue to have a strong appetite for digital health, with investment in the sector totaling $4.2 billion across 180 deals through the first half of 2019. If this pace holds steady, the sector is on track to raise $8.4 billion in 2019 and could top 2018's record-breaking annual funding total of $8.2 billion.
Asia-Pacific is after North America in terms of market share in the global Managed Services market. However, with the rising economies and the adaptation of technologies for the sectors such as banking, in developing countries like India and China is expected to boost the data lakes market in Asia-Pacific for the forecast period. The huge IT industry presence in India will also boost the market. For instance, the internet industry in India is likely to double to reach US$ 250 billion by 2020, growing to 7.5 percent of gross domestic product (GDP). The number of internet users in India is expected to reach 730 million by 2020, supported by the fast adoption of digital technology, according to a report by National Association of Software and Services Companies.
Key players are adopting strategies such as investing in R&D, new product launches, expansion in distribution channels to stand out as strong competitors in the market. Global Managed Services Market is a fragmented market with the presence of various global and regional players in the market. The major players include Accenture, Cisco Systems, Dell Technologies, HCL Technologies, Hewlett Packard Enterprise, IBM, AT&T Inc., Avaya Inc., CA Technologies, DXC Technology Company, and among others.
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